Thread: Army Guard returning to state status from 18 months AD

sheasljj wrote:

Understand that I am deployed and will be in January and possibly Feb. So all that money that I contribute while I'm in the tax exempt combat zone doesn't count against the $15K limit. If that's the case then for the remaining 10 (or 11) months I will make equal contributions so that I max out the $15K. If it's 10 months then that will be $1,500/month.

But if you are in the combat zone next year, you are not bound by the 15k limit. You can actually put in all of your base pay for the remaining 10 (or 11) months... Why? IRS limit for 15k goes against your base pay that are taxable. Since your base pay in the combat zone is not taxable, this does not apply.

I know this is hard to do but for those that can do it, wow, that would be great. If someone thinks that I am wrong, I would like to hear it...

I should be returning from the tax exempt combat zone in Jan or Feb. So only the pay I contribute during Jan and/or Feb will be tax exempt. The rest of my pay, Feb or March on will be taxable and that will count against the limit.