Leading with Cents

11: Combat Zone Tax Free TSP Benefits


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Combat Zone Tax Exclusion (CZTE) TSP Benefits 

Roth while deployed:
"Tax free in, tax free out"

Contributions provide the opportunities to grow your TSP accounts through tax breaks and higher contribution limits
 Contributions to Traditional or Roth TSP account is invested TAX-FREE Difference between Roth TSP and Traditional TSP in CZTE/DSA

Roth- Contributions AND their earnings are tax-free when you withdraw them
Traditional- Contributions are tax-free but their earnings ARE NOT tax-free when withdrawn

Contribution Increase
Total contribution limit goes up to $57,000

Max you can contribute to a Roth is $19,500 even in CZTE/DSA then must switch to Traditional

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BRS Guide
https://militarypay.defense.gov/Portals/3/Documents/BlendedRetirementDocuments/A%20Guide%20to%20the%20Uniformed%20Services%20BRS%20December%202017.pdf?ver=2017-12-18-140805-343

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