Last week my tips dealt with special opportunities you probably will have with the increased income and the
importance of giving serious thought to building an actionable and realistic plan. This week I will build on that with
some additional tips.
I. SCRA-Covers many exceptions/benefits on personal finance issues for airmen deployed on active duty. The
6% interest cap is most talked about (only on debt incurred BEFORE deployment), but there are many
others. I encourage all to contact/seek relief under this act despite some interpretations of the language as
many institutions will concur out of patriotism. Be sure to evaluate the following potential benefits:
Cell phone contracts
Automobile leases (loans would be covered under the 6% issue)
Installment contracts
Eviction, foreclosure, other legal proceedings
Lastly, review USERRA (https://www.dol.gov/elaws/userra.htm ) for additional information and if there is
an employment issue, use https://www.esgr.mil for an excellent source on support information.
II. Savings Deposit Plan (SDP)-Depending on the location of your deployment you may be eligible for this DoD
savings plan. If deployed in an SDP-eligible combat zone and receiving Hostile Fire Pay after 30 days you
can contribute up to $10,000 and earn 10% annually, compounded quarterly. The earnings continue to
accrue until 90 days after leaving the combat zone. Note-some local banks or credit unions may offer
similar programs, so check them out.
III. Combat Zone Tax Exclusion (CZTE)-base pay, hostile fire and may other forms of income can be excluded
from income tax with no required action from the service member (although it is recommended to watch
your statements for accuracy). This income is also not considered in income-based student loan payments.
One exception to the exclusion are payroll taxes (FICA). You are covered for each month and partial month
in the eligible zone, even if only serving one or more days. There are some limits and further information
can be found in IRS Publication 3.
EIP in Form of Debit Card – There’s a possibility of a second round of these payments which can be received as a
direct deposit or a debit card. Most everyone hates junk mail, but WARNING, the EIP Visa Debit Card will come in a
plain envelope from “Money Network Cardholder Services” issued by “MetaBank, N.A.” and could easily be
discarded as junk mail. Access to the money in your account is through their website EIPCard.com with many no-fee
options. Here’s more information on the debit cardhttps://
www.consumerfinance.gov/about-us/blog/economic-impact-payment-prepaidcard/?
utm_source=newsletter&utm_medium=email&utm_campaign=wc&utm_term=June320 .
Randy Gerard, PFC C (573) 415-6934 O (816) 236-3659 pfc.rosecrans.ang@zeiders.com