Making Up Missed 401(K) Contributions Post Deployment

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huskywarrior
Posts: 1
Joined: Thu Apr 20, 2017 8:06 pm

Making Up Missed 401(K) Contributions Post Deployment

Post by huskywarrior » Thu Apr 20, 2017 8:26 pm

I need some advice and guidance regarding my retirement accounts. I have been deployed and on active duty since 2013 and am being medically retired. I can make up missed 401(K) payments (and receive matching) if I return to the part-time, weekend only job I had in college before I deployed. The total that I didn't contribute totals $53,000. With the company match I would receive approximately $80,000 and I would have 60 months to make the contributions.

My transition plan is to go to school for computer science. Should I go back to this job? I don't need the money to survive, and it seems almost to good to pass up. Also, if I do return to the job, how should I allocate the funds when I roll it all back into the TSP? The TSP has 5 basic funds; cash, bonds, S&P 500, Small / Mid Cap & Foreign Stocks.

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House Blend
Posts: 4181
Joined: Fri May 04, 2007 1:02 pm

Re: Making Up Missed 401(K) Contributions Post Deployment

Post by House Blend » Fri Apr 21, 2017 10:56 am

Welcome to the forum.

Sounds like you are saying that if you work this part time weekend job for 60 months, you'll have the option to contribute an extra $53K from your wages to retirement accounts, and get another $27K in "free" (matching) money. The latter is like an extra $100 per weekend.

Seems like a pretty good deal--assuming you can both afford to do it and not have it hinder your progress toward the degree. I would be tempted to try it. Quit the job if it does interfere with the degree.

I'll leave others to advise you on the TSP. Probably you could do just fine with the G, C, and I funds. Add S if you are fussy. Here's our wiki page on it:
https://www.bogleheads.org/wiki/Thrift_Savings_Plan

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