Pretax payment of separation incentive

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Q. For Army employees: Have you heard anything regarding the Voluntary Separation Incentive Program and pretax payment? Or is there anything before Congress? What are the pros and cons to employees having their money from a VSIP benefit going to TSP? What would they need to do to ensure that money goes to TSP?

A. A VSIP is not eligible for deferral to the TSP.

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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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