Whether to participate or not in a 529 plan is a less clear decision for an active or retired Military Officer or Senior NCO. You'll want to account for Veteran's Benefits and your state income tax situation as a start.
When I teach at ETAPs, a lot of retiring senior military officers and NCO's ask me about gift taxes. I explain the annual exclusion. But what happens if you exceed that amount?
Many retired military officers want to contribute to a Roth IRA while working. The problem is that often their income is too high to contribute to a Roth. There is a work around, but if you have a Traditional IRA or if you roll TSP to an IRA, it doesn't work like you may think.
If you have employer stock in your 401(k) you have options on how you take it out. A lot of defense contractors do offer company stock in a 401(k). If you're a retired military officer that has company stock in your 401(k), you need to understand Net Unrealized Appreciation.
A lot of retired military officers are offered signing bonuses when they enter their second career. What happens if you have to pay the bonus back? You might have an "interesting" tax calculation the year you pay it back.
What is the difference between inheritance and estate taxes? Many active and retired military officers aren't sure of the difference. They're similar, but not the same.
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