Opens in a new tab

Money maneuvers for military men and women

September 22, 2006

While the fighting goes on in the Middle East and politicians and thArmyradiooperator_smalle citizens who elected them debate what moves to make next, our military personnel are dealing with not only potential personal safety concerns, but also money issues.

Regardless of whether you (or a loved one or a neighbor or a coworker) is active military or on-call via the reserves or National Guard, you face special financial considerations, both in times of peace and war.

Many issues, such as debt management, routine financial transactions and insurance coverage, are ones civilian and service personnel alike must handle. Others, such as managing your money when redeployed, called-up or sent into combat, require special attention by members of the armed forces.

This article, "Be Financially on Guard," originally published in the Dallas Morning News and reprinted on Military.com, does a good job of examining some of the specific fiscal concerns faced by men and women in uniform and their families.

Retirement planning enhancement: While military members, especially those in the thick of fighting, have many other things on their minds, when the time is right, they also should look at how a new law can help them save for retirement.

Previously, a serviceman or woman could not count tax-free combat pay when figuring how much he or she could put into an individual retirement account. The Heroes Earned Retirement Opportunities (HERO) Act, signed into law this past Memorial Day, changed all that. Now, members of the U.S. armed forces can use that hazard pay to add to their IRAs, both as regular and catchup contributions.

If this IRA change affects you or someone you know, you can read more about it in this National Association of Tax Professionals release, as well as in this IRS announcement.

And it might be easier for service personnel, regardless of whether they get regular or combat pay, to put away a bit more now. House and Senate negotiators agreed to a $447 billion Pentagon funding bill that includes a 2.2 percent pay increase for the military.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Taxes for Our Military

    Don’t Mess with Taxes has a great article on new tax benefits for our service people. If you know someone serving in our military send it along to them….

  • Bitacle Blog Search Archive – Money maneuvers for military men and women

    […]
    While the fighting goes on in the Middle East and politicians and the citizens who elected them debate what moves to make next, our military personnel are dealing with not only potential personal safety concerns, but also money issues. […]

  • It’s about time!

Leave your comment