Keyboard Ninja
Recycles dryer sheets
- Joined
- Apr 13, 2008
- Messages
- 157
I'm leaving for Qatar later this year on a 120 day TDY. I've read about the Military Savings Deposit Program (Special Savings Account for Combat Zones) and was confused about a few things.
Does that mean I wouldn't get the $68.21?
Deposited funds will accrue interest at 10% per annum, compounded quarterly, based on calendar year. Interest only accrues on amounts up to $10,000 (principal and accrued interest combined).
Hypothetical situation:Eligibility for SDP stops on the day of departure; however, interest will continue to accrue up to 90 days after redeployment. If the service member requests withdrawal of funds prior to the 90th day, interest stops on date of request. (NOTE: If the 90th day falls on any day other than the last day of a month, interest will accrue through the last day of the preceding month.) Since the IRS considers SDP interest unearned income the interest is taxable even though the soldier is located in a combat zone tax exempt (CZTE) area.
Does that mean I wouldn't get the $68.21?
I currently have $125 of my pay automatically alloted towards my savings account, and 15% of my base pay (E-3) towards the TSP fund. Does this mean I can only contribute up to my monthly take home pay?All deposit amounts, regardless of depository method, must be made in $5 increments (e.g. $50, $65, $1005, not $1001.67). and cannot exceed a service member’s monthly-unallotted current pay and allowances (e.g. monthly net pay after all deductions and allotments; includes special pays and reenlistment bonus).