March 2026
From the Field
As we start to emerge from what can only be described as a geographical and meteorological mix-up with snow drifts in Virginia and much of the northwestern mountains in a severe snowpack deficit, it's exciting to see nature start to come back to life. I certainly don't mind the snow and ice, but my furnace (and electric/gas bill) could probably use a timeout. We just opened the windows yesterday - it was incredibly beautiful out! I also got to work in our yard yesterday, making quick work of the overgrowth using my new chainsaw! The NFL is officially "on a break" as we shift into our Spring events calendar; Easter, the last few months of school, baseball season, PCS season preparation, race training, and for us, our son's wedding just around the bend!
The BLUF
I know you'll want to read the entire newsletter, but here's a preview of what's included in this month's edition.
✅ Feel Good Moment. Adulting adults... again.
✅ The Guinness really is better in Ireland.
✅ Tax return filed. Now what?
✅ TSP vs IRA. Do you really have to choose?
✅ In plain site. Some of the other places you'll find my musings.
Feel Good Moment
As a father of now young adults, it's pretty cool sometimes to reflect back on moments of celebration, particularly, watching my boys figure things out. There are the staples like learning to read, ride bikes, use their imagination, and so on. There has been watching their relationship with each other grow from sibling rivalry to truly being really strong and close today. There's been the artistic sides of each of them; our oldest a talented and creative singer, songwriter, and musician and our youngest, a talented actor, singer, and musician. Relationships with significant others have been amazing to watch, mainly because I can't help but think, (or at least hope), that some of the conversations and behaviors we're watching, were modeled for them. It's not always perfect, but it is getting better with each generation (in my humble opinion).
Our youngest son joined the Air Force back in 2023 and almost immediately after high school, moved out to head to boot camp and his first duty station. That was my first bittersweet experience - walking by his room, proud that he was figuring out this "adulting" thing, but saddened by not seeing him each day. Today, the day this newsletter hits your email, my oldest son is getting his own place across town and I could not be prouder, as he too, is figuring out this "adulting" thing. You may already be picking up what I'm putting down - that's two adult sons and both have moved out. That makes us, as of today... EMPTY NESTERS!!!!
What Makes Guinness Better In Ireland?
As we approach St Patrick's Day, I thought I might reflect on our time stationed in England, when we had the opportunity to hop over to Ireland for a few days. Clearly, there were two landmarks on our list. The Cliffs of Moher - the famous location of the "Cliffs of Insanity" from the cult classic film, "The Princess Bride" and the Guinness Brewery. While not a huge connoisseur of beer, I had heard about this idea that Guinness was better in Ireland.
But is it true?
There are a few reasons why many believe a pint of Guinness is superior in its home country.
First, freshness. Ireland has one of the highest per-capita consumption rates of Guinness in the world. In many pubs, kegs turn over quickly, meaning the beer is almost always fresh. Faster turnover can translate into better flavor consistency and optimal carbonation.
Second, quality control standards in Irish pubs are notoriously high. Proper storage temperature, clean tap lines, and correct gas mixtures are critical for stout. In Ireland, bartenders are trained to pour a proper two-part pint, allowing the nitrogen bubbles to settle before topping it off. That process contributes to the signature creamy head and smooth mouthfeel.
Third, water chemistry can play a subtle role. While Guinness is brewed for export, small differences in storage, handling, and environmental conditions may influence taste perception.
I'll be honest - I bought in 100%. A pint was much better in Ireland. It very well may have been for the reasons listed, but I also believe it was the psychology.
Enjoying a pint inside a centuries-old pub, surrounded by live music and local conversation, changes the experience. Atmosphere, expectation, and travel excitement all influence how flavor is perceived.
In short, some of the difference may be technical. Some may be emotional. Most likely, it is a blend of both.
So what does Guinness have to do with a financial newsletter? Well, frankly, it was the experience of going to Ireland and exploring. It was of immense value to me and my family, something we'll never forget, and well worth spending money on.
I've Filed My Taxes. Now What?
You've filed your taxes - congratulations! But tax season doesn't end when you hit "submit." For military families, staying proactive throughout the year can mean significant savings and fewer headaches next tax filing season. Here's are some small tweaks you can make in the year ahead to make next tax filing season, even better.
Update Your W-4 After Life Changes
Did you get a large refund or owe a lot of tax? Often these swings cans be related to one-time changes in your life. Did you get married, have a baby, or buy a home last year? If your tax situation changed significantly from what you expected, review your W-4 withholding now on MyPay. Getting too large a refund means you gave the government an interest-free loan. Owing too much could mean underpayment penalties. Adjust your withholdings through MyPay to get it right for this year. My general guidance is to aim for +/- $1,000 from your actual tax liability. Ultimately, be sure to hit your Safe Harbor amount.
Track Your Move Expenses
PCS moves are part of military life, but they can also affect your taxes. Unreimbursed military moving expenses are one of the few above the line deductions ONLY for the military. Above the line is different than below the line; there is a dollar for dollar reduction of your Adjusted Gross Income (AGI) - the amount used in so many other eligibility criteria. Be sure that as you prepare for an upcoming move, that you keep records of those out-of-pocket expenses to add to your tax return next year. Good records now save scrambling later.
Maximize Your TSP Contributions
Now that you know your tax picture, as you adjust your withholding, consider increasing your Thrift Savings Plan contributions. If you received a large refund, redirect that monthly income into your TSP instead. Traditional TSP reduces your taxable income (consider if you are above the 24% tax bracket), while Roth TSP grows tax-free (consider if you are below, in, or even up to the 24% tax bracket). Aim to contribute more this year.
Establish a Tax Folder System
You know you have to keep tax records. I recommend clients hold on to their tax documents, including returns, for 6 years. As you create a simple filing system, physical or digital, for historical purposes, that same filing system can work for your year ahead. Some of the most common records you might receive throughout the year would include deployment orders, receipts for tax-deductible expenses (such as a PCS), property tax receipts, and charitable donation records. When January rolls around, everything's in one place.
Review State Tax Implications
Military families often maintain legal residence in one state while stationed in another. Review your state's tax laws, especially if you're considering changing your state of legal residence. Some states offer significant tax advantages for military members. The Military Spouses Residency Relief Act also allows spouses to maintain their home state, their spouses home state, or their duty station home state. Be sure to consider all your options when making this decision.
Plan for Combat Zone Tax Benefits
If you know your are on the rotation to deploy to a combat zone, understand the tax benefits beforehand. Combat pay is typically tax-free, and you have extra time to file and pay taxes. But you can also elect to include combat pay in earned income for EITC purposes, which might increase your refund. The TSP also allows you to increase your deferrals above the annual deferral limit, into the annual additions limit which likely gives you ~$30k-$40k of contribution room. Plan ahead to maximize these benefits.
Ensure You'll Hit Your Safe Harbor
If you have side income, rental properties, or spouse employment beyond your military pay, understand safe harbor rules to avoid underpayment penalties. You're generally safe if you pay 90% of this year's tax liability or 100% of last year's (110% if your income exceeds $150,000). Review your withholding and estimated payments now to ensure you'll meet these thresholds by year-end.
Consider Professional Help for Next Year
Military OneSource offers free tax prep services, and many installations have VITA-trained personnel programs. These are excellent resources for those who have relatively simple tax returns.
If this year's taxes felt overwhelming or left you second-guessing, however, now's the time to find help for next year, not next January. Look for a tax firm with at least one person in the office who is an Enrolled Agent (EA) or Certified Public Accountant (CPA). These two individuals can not only file your tax returns, but they can represent you in front of the IRS in case you are audited.
As a start, check out the Military Tax Experts Alliance. Schedule early, like October or November, before slots fill up.
TSP vs. IRA: Why Military Members Need Both
If you're contributing to the TSP, you're doing something right. But here's the question most military members never ask: should you also have an IRA?
The short answer: yes. Here's why.
What's the Difference?
The TSP is your employer-sponsored retirement plan with low fees, automatic payroll deduction, and matching contributions. It offers six investment funds (G, F, C, S, I, and lifecycle funds) and has strict rules about accessing money.
An IRA is a individual retirement arrangement (or account) you open and control yourself through any brokerage. You choose the investments, manage contributions, and have significantly more flexibility. Both offer tax advantages, but they serve different purposes in your financial plan.
Why the TSP-IRA, 1-2 Combo Packs a Punch
The TSP is excellent for simple, low-cost retirement savings. But it has limitations:
Limited investments. Don't get me wrong - this isn't necessarily a bad thing; I like simplicity. But, if you'd like to further diversify across real estate, precious metals, or sector-specific options, you won't be able to do that.
Withdrawal restrictions. Accessing money before 59½ is difficult. Even after retirement, withdrawal options are rigid and done pro rata. (It's difficult to setup a 3-bucket strategy.)
Limited beneficiary options. This is one of the biggest disadvantages in my opinion. The TSP will setup a beneficiary participant account for your spouse where they can continue to manage and maintain the account. For a non-spouse, they will only setup a temporary account, the date from which the beneficiary will have 90 days to roll the balance into an inherited IRA or else be sent a distribution check for the entire balance - a potential large tax bomb.
What an IRA Gives You
Investment freedom. Thousands of stocks, bonds, ETFs, and mutual funds. Build a portfolio matching your specific goals.
Flexible access. First-time home purchase? Pull $10,000 from a IRA penalty-free. Higher education expenses? Also penalty-free.
Backdoor Roth strategy. High earners exceeding Roth IRA income limits can use backdoor conversions.
The 10 or 5 Year Rule. It's a bit easier to pass your IRA from one beneficiary to the next over the TSP. And, as you plan to pass your accounts to your non-spouse beneficiaries, they can at least keep the money invested for a period of time beyond your passing. In most cases, your beneficiaries will have until Dec 31st in the 10th year after your passing to completely distribute your IRA. There are circumstances, like leaving your investments to your estate, that may shorten that timeline to 5 years.
The Smart Strategy: Use Both
Max your TSP match first. If you are in the Blended Retirement System, get the 5% match. It is free money.
Then fund a Traditional or Roth IRA. Contribute up to $7,500 (2026 limit, or $8,600 if you're 50+). This gives you investment flexibility and tax-deferred or tax-free growth for retirement.
Then return to TSP. After maxing your IRA, if you still have more to save, increase TSP contributions to maximize your tax-advantaged space.
This order captures the employer match first, builds flexibility second, then maximizes your low-fee, tax-advantaged options.
When an IRA Becomes Critical
Planning to separate? An IRA, specifically the contributions in your Roth IRA, can become a secondary emergency fund if you need it. You will always have access to your contributions tax and penalty free.
Stay at home spouse? Spousal IRAs build household retirement savings beyond TSP limits and give ownership of a retirement asset to the stay at home partner.
High earner? Use backdoor Roth conversions when above direct contribution limits. This is where the TSP and IRA combo are most powerful. If you have pre-tax money in your traditional IRA(s), you can roll that money INTO your TSP account before then contributing after-tax money to your IRA so you can do a clean Roth conversion - no pro rata.
Getting Started With an IRA Takes ~20 Minutes
You have to first choose a brokerage. While this is not a recommendation, you've probably heard of the big three custodians; Vanguard, Fidelity, and Schwab. There are others you can choose from, but the choice really revolves around how comfortable you are with them holding your investments and the ease of which you can invest. If you choose a different custodian, be sure they are insured under SIPC!
Open a traditional and Roth IRA, link your bank, make your first contribution to either the Roth or Traditional (based on your tax situation), and set up automatic transfers. From there, invest your contributions each month or in some cases, you'll be able to setup automatic investing.
The TSP is a fantastic foundation. But an IRA gives you the flexibility and control military life demands. You don't have to choose; use both strategically.
In Plain 'Site'
Check out my latest articles:
Check out the Fiscal Foxhole podcast with myself and Rob Moore - we're out every Wednesday morning!
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Disclaimer: This newsletter is provided for educational, general information, and illustration purposes only. Nothing contained in this material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation.
