For veterans and military families
A pension, a second career, and decisions that do not come with a checklist.
The Survivor Benefit Plan election is made at retirement and is difficult to change afterward. It is one of several military benefits that most civilian planners have never modeled together. We coordinate the pension, the survivor election, VA compensation, the TSP, and the next career as one structure.
The situation
Retirement from service is rarely retirement.
Many service members leave uniform in their forties with a pension, a TSP balance, a pending VA rating, and thirty working years still ahead. A spouse who has moved many times may be restarting a career at the same moment.
The retirement packet asks for decisions on a deadline. The SBP election, what to do with the TSP, whether to convert SGLI, and where to settle all interact with each other and with a civilian salary that has not started yet. Each form covers one piece.
We put the dates that cannot move on the calendar first, then build the plan around them.
Why it’s complex
Five pieces that have to fit together
Two survivor streams
SBP and a Social Security survivor benefit are separate incomes with separate rules. We model both before choosing an SBP base amount.
Read the guideTax-free income opens a window
VA disability compensation is excluded from federal income. In the years before a civilian salary peaks, that can leave room for measured Roth conversions.
Read the guideOne deferral limit, two plans
The TSP and a new employer’s 401(k) share a single $24,500 deferral limit in 2026. The question is which plan absorbs which dollars.
Read the guideA rollover can restart a clock
Moving Roth TSP money into a Roth IRA can change which five-year clock applies to it. The TSP often deserves to stay put.
Read the guidePension plus salary stacks up
Taxable retired pay sits beneath a civilian salary, and together they set the bracket. For joint filers the 12% bracket ends at $100,800 of taxable income in 2026.
Read the guideSources: DFAS; Military OneSource; VA, Veterans’ Group Life Insurance; DoD, militarypay.defense.gov. Figures are drawn from public materials; we are not affiliated with these agencies.
Our approach
The deadlines first, then the structure
We start with the retirement date and the elections due, then map each income stream by its tax character. The result is one plan, not a stack of separate forms.
Model the SBP election
Full coverage, a reduced base amount, and declining coverage with an alternative are compared against the spouse’s own earnings and the family’s other protection, before DD Form 2656 is signed.
Map each income by tax character
Retired pay based on age or length of service is taxable; VA disability compensation is not (IRS Publication 525). State treatment of retired pay ranges from full exemption to full taxation, so we compare it before a move, not after.
Decide on coverage
SGLI coverage of up to $500,000 ends after separation. VGLI can be requested within one year and 120 days, and without health questions inside the first 240 days. We compare it with individually underwritten coverage alongside an independent insurance professional.
Keep the pieces in sequence
The TSP, the new 401(k), a spouse’s career, Social Security, and the estate evolve together. Our Quarterly Rounds keep them coordinated.
The work
What you’ll work through with us
- An SBP model comparing full, reduced, and declining coverage
- A tax map of retired pay, VA compensation, and civilian salary
- TSP decisions: stay, roll to an IRA, or roll into a new employer plan
- Contribution planning across the TSP and a second-career 401(k)
- Roth conversion sizing in lower-income years
- SGLI-to-VGLI timing and a coverage review, with no product sales
- A state-tax comparison of retired pay before a relocation
- Blended Retirement System choices: the full match, continuation pay, and the lump-sum option
Planning for military families at the firm is led by Theo Halbardier, CFP®, CIMA®, CAIA®, the firm’s founder. We are fee-only: no commissions, no product sales. About Theo
Questions
Common questions from veterans and military families
Are you affiliated with the VA or the Department of Defense?
No. We are an independent, fee-only advisory firm. We are not affiliated with or endorsed by the Department of Veterans Affairs, the Department of Defense, or any branch of service. Figures on this page come from their public materials.
Should I move my TSP to an IRA when I separate?
Not automatically. The TSP allows separated members to keep the account and change allocations, and its costs are low. An IRA offers broader investment choice and more flexible withdrawals. A new employer plan may accept the rollover and keep everything in one place. We compare all three against your actual needs before recommending one.
Is the Survivor Benefit Plan a good deal?
For many families it is the only inflation-adjusted, lifetime survivor income available, and the premium is deducted before tax. For others, existing coverage or a surviving spouse’s own pension changes the answer. Because the election is difficult to change afterward, we model it before the retirement date.
Does VA disability compensation affect my planning?
Yes, in a helpful way. It is excluded from federal taxable income, which changes the household’s bracket math, the Roth conversion window, and the timing of other income. We treat it as a distinct income stream with its own tax character.
We are still on active duty under the Blended Retirement System. Is this for us?
Yes. Under BRS the pension multiplier is 2.0% per year of service rather than the legacy 2.5%, so the TSP carries more of the load. Contributing enough for the full match, the continuation pay election, and the lump-sum option at retirement all benefit from early modeling.
How are you paid?
We are fee-only. Our compensation comes from clients alone, never from insurers or product sponsors, which keeps the SBP and coverage reviews independent.
Reviewed by Theo Halbardier, CFP® · Updated September 2026 · Figures current for 2026
Tell us where you are in the transition.
The first conversation is 30 minutes. Bring the dates you know; no preparation needed.
Meet with usNot affiliated with or endorsed by the Department of Veterans Affairs, the Department of Defense, or any branch of service.