Quick Hpsp question

[Cblanket]

In the w2, does the stipend go in box 1?is it counted as taxable income? The main reason I ask is I was wondering if I am able to contribute to an ira with money from the stipend.

Thanks

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[bulldogmed]

yes and yes. You can contribute. I suggest a Roth

 

[Cblanket]

Awesome. Thanks for the quick reply. Even if I don't receive the stipend until school starts, I am able to contribute now correct?

 

[bulldogmed]

Yeah, you should. It wouldn't come up until you do your taxes for 2014.

 

[aklark]

On a related note, does anyone have experience contributing to military TSP Roth from their HPSP stipend? (Not sure if IRR qualifies or you have to wait until ADTs for this...)

Can you just put in the percentages on MyPay once your pay starts like you normally can, or do you have to submit the TSP election form? Any ideas which office would sign this before it goes to TSP?

 

[bulldogmed]

You can't contribute to the TSP from your HPSP stipend. You can only contribute to TSP when you're active duty. While on your AT 45 days, you could look into setting it up, but you could only contribute money earned during that period.

On a related note, does anyone have experience contributing to military TSP Roth from their HPSP stipend? (Not sure if IRR qualifies or you have to wait until ADTs for this...)

Can you just put in the percentages on MyPay once your pay starts like you normally can, or do you have to submit the TSP election form? Any ideas which office would sign this before it goes to TSP?