Voluntary Deductions — Allotments and Thrift Savings Plan
Member-Established Deductions
Voluntary Deductions Purpose
Military members may establish voluntary deductions, such as allotments, to help:
- Administer personal finances
- Support family members
- Pay insurance premiums
Discretionary vs. Nondiscretionary
Discretionary Allotments
Members may control certain discretionary allotments through myPay.
Nondiscretionary Allotment Uses
Nondiscretionary allotments have limited uses, such as:
- Charitable contributions
- Loan repayments to the Air Force Aid Society
- Garnishment for commercial debts
- Delinquent travel charge card debt
What Cannot Be Allotted
Personal Property Restriction
Members are NOT authorized to start allotments for purchase, lease, or rental of personal property.
Allotment Timing
30-Day Processing
To allow for sufficient processing time, allotments should be requested 30 days before the desired month.
How Deductions Are Split
Twice-Monthly Pay Split
Normally, if the member is paid twice a month, the allotment is deducted in equal amounts from the mid-month and end-of-month pay.
Monthly Pay Split
If the individual receives pay once a month, the entire amount is deducted from the monthly paycheck.
Thrift Savings Plan (TSP)
TSP Voluntary
The Thrift Savings Plan (TSP) is a voluntary deduction.
TSP Definition
It is a retirement savings and investment plan established for federal employees as part of the Federal Employees' Retirement Act of 1986.
Tax Advantages
TSP Tax Advantages
The plan offers tax-deferred advantages similar to those in an individual retirement account or 401(k) plan.
Traditional vs
Roth.
- Traditional TSP contributions can be taken out of pay before taxes are computed, resulting in reduced individual tax obligations
- Roth TSP contributions are taken out of pay after income is taxed. When funds are withdrawn at a future date, contributions will be tax-free since taxes were already paid on the contributions
Blended Retirement System (BRS)
BRS Auto-Enrollment Date
A member is enrolled into the Blended Retirement System (BRS) if they enlisted on or after 1 January 2018.
BRS 5% Auto
BRS members are automatically enrolled in TSP at the level of 5% individual contribution from their monthly basic pay or inactive duty pay.
When Contributions Begin
BRS Contribution Start
The amount will be contributed to the member's TSP account beginning with the first pay period following the member's 60th day of service as calculated from the Pay Entry Base Date (PEBD).
Additional Contribution Sources
TSP From Bonuses/Special Pay
If a member is contributing to the TSP from basic pay, the member is authorized to contribute bonuses, incentive, or special pay.
Contribution Maximums (January 2023)
TSP Max Contributions.
- $22,500 for deferred and Roth contributions
- $66,000 total combined deferred/exempt Traditional and Roth contributions
92% Cap
92% Basic Pay Cap
Members are NOT permitted to contribute more than 92 percent of their basic pay so that required deductions of social security and Medicare can be made.