April 27, 2026

Max Out Your Roth TSP | 5 Minute Military Money 8/10 #226

Max Out Your Roth TSP | 5 Minute Military Money 8/10 #226
Max Out Your Roth TSP | 5 Minute Military Money 8/10 #226
The Military Money Manual Podcast
Max Out Your Roth TSP | 5 Minute Military Money 8/10 #226
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Season 1

Step 8 in our 10-part series: max out your Roth TSP.

Spencer and Jamie explain the triple tax benefit military members get by combining low-taxed allowances with Roth contributions, and why maxing the TSP is a stretch goal — not a year-one expectation.

Topics covered:

  • The 2025 Roth TSP contribution limit is $23,500 (Spencer's projection for 2026: ~$24,500)
  • Why BRS participants need to spread contributions across all 12 months to get the full match
  • How deployed servicemembers in a Combat Zone Tax Exclusion (CZTE) area can contribute above the standard limit
  • The triple tax benefit: BAH and BAS are untaxed allowances, Roth contributions grow tax-free, and qualified withdrawals after 59½ are tax-free
  • What maxing looks like in practice: ~49% of base pay for an E-5 over 6, ~28% for an O-3 over 4
  • Why this is an "advanced" step — most Americans barely save 5% for retirement
  • It's okay to save 20% instead of maxing out — you're just pushing your FI date back
  • Annual contribution limits are use-it-or-lose-it — you can't recover last year's unused space
  • Why starting early matters more than the amount, thanks to compounding
  • Spencer's TSP max contribution chart by rank and time in service

Resources mentioned:

  • tsp.gov (to confirm current year contribution limits)
  • militarymoneymanual.com/tsp
  • Military Money Manual TSP max contribution chart by rank and time in service
  • Past episodes covering TSP contributions in Combat Zone Tax Exclusion (CZTE) areas

Spencer and Jamie offer one-on-one Military Money Mentor sessions. Get your personal military money and personal finance questions answered in a confidential coaching call at militarymoneymanual.com/mentor.

Over 22,000 military servicemembers and military spouses have graduated from the 100% free Ultimate Military Credit Cards Course, available at militarymoneymanual.com/umc3.

In the course, you can learn how to apply for the most premium credit cards and get special military protections, such as waived annual fees, on elite cards like The Platinum Card® from American Express and the Chase Sapphire Reserve® Card.

Learn how active duty military, military spouses, and Guard and Reserves on 30+ day active orders can get annual fees waived on premium credit cards in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.

If you want to maximize your military paycheck, check out Spencer's 5-star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.

If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual.

Military Money Manual may receive compensation from JPMC. Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain.