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Military Finances 101: 5 (Relatively) Easy Financial Resolutions Thumbnail

Military Finances 101: 5 (Relatively) Easy Financial Resolutions

Managing Your Finances

The New Year can't start without some resolutions. To be honest, I'm not a big fan. I was thinking about making one this year to "drink more beer". I figured I could conquer that one, but I decided to not set it as a goal.

So, if I'm not a big fan of resolutions, why would I write an article about financial resolutions? Because small changes can make a difference. So here is my list for 2026.

  • Check Your Beneficiary Designations. Check your retirement accounts (TSP, 401(k), IRA) to see if you have designated beneficiaries. Are they who you want to receive your assets? Do you have contingent beneficiaries? Do you have beneficiaries on your taxable account? Should you? Are your beneficiaries on your life insurance correct?
  • Stop Contributions to Your Roth IRA (Maybe). If you recently retired from the military or will retire this year, you may want to stop your Roth IRA contributions in case your income will exceed the limit in 2026. They are:
  • Married = Phase out starts at $242,000 of Adjusted Gross Income (AGI)
  • Single = Phase out starts at $153,000 of AGI
  • Increase Contributions to Your Employer's Retirement Plan. Contribution limits increased this year (if you're not maxing out your account look to increase contributions by 1/2 of any COLA you received).
  • Basic contribution amount increased to $24,500 from $23,500
  • Catch-up for those 50 and older increased to $8,000
  • Special catch-up for those age 60 - 63 is $11,250
  • File a Form 4547 When You File Your Tax Return (if you have children under age 18). You file a Form 4547 to open a Trump Account. You'll want to have one open in case a random billionaire decides to donate money to kids in your zip code. Or your employer might want to contribute to one. If your child was born in 2025 (and in the future through 2028), the Treasury will contribute $1,000 to the account.
  • Keep Track of Your CASH Contributions (if you didn't itemize in the past). Starting in 2026, people who don't itemize will be able to deduct some ($1,000 single, $2,000 married) CASH contributions.

For extra credit:

  • Review your Auto Insurance. Are you carrying collision and comprehensive on an old junker that will be totaled if you ding the bumper? Are you carrying low deductibles that are costing you? Do you have add-ons like towing coverage that don't meet the definition of an insurable risk (low likelihood, high cost)?

Small steps make a difference. Even if you only accomplish one of the things above, you'll be in a better spot than if you don't do any of them.

Military Finances are Different

Whether we're talking about pay and allowances or pension versus disability, there are a lot of unique financial aspects to a servicemembers' (active or retired) life. That's why we think you should work with a financial planner/advisor that deals with those aspects each and every day. If you'd like to find out how we work with people just like you, use the button below to schedule a free, initial consultation.

If you found this article useful, you might like the following blog posts:

Military Finances 101: 2026 by the Tax Numbers


Military Finances 101: Four Easy Ways to Simplify Your Budgeting Process


Military Finances 101: How to Cancel Subscriptions You Didn't Even Know You Had


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