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Military Benefits

Comprehensive, plain-English guide with step-by-step instructions

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Money & Banking

Credit cards under MLA/SCRA, savings programs, and credit protections.

Credit Card Annual Fee Relief (MLA / SCRA)

High value
Issuers may waive annual fees and cap rates for covered borrowers. Policies vary by bank.

Savings Deposit Program (SDP)

10% APY (capped)
Deployed in a combat zone and receiving HFP/IDP? Deposit up to $10,000 at 10% annual interest.
How it works
  • Eligible after 30 consecutive days in a qualifying area (or 1 day in each of 3 consecutive months).
  • Interest accrues monthly and is paid quarterly on balances up to $10,000.
  • Withdraw after leaving the combat zone; emergency withdrawals possible with command approval.
How to use
  • Start the deposit via finance or myPay; fund from pay/allotment.
  • Target a full $10,000 balance if cash‑flow permits to maximize guaranteed return.
  • Plan withdrawals and taxes on interest (interest is taxable).

Career Starter / Kickoff Loans

Low APR
Special personal loans for commissioning officers/cadets with deferred payments and low rates.
Typical features
  • Navy Federal: up to $36k at low APR for academy cadets; up to $25k at low APR for ROTC/OCS/OTS; deferral options.
  • USAA: career starter loans with low fixed APR and deferred start; amounts and eligibility vary by program.
How to use responsibly
  • Borrow only what you need; avoid investing borrowed funds without understanding risk.
  • Set autopay and keep emergency cash for PCS/initial expenses.

Free Credit Monitoring & Active Duty Alerts

Identity protection
Active‑duty and Guard members can enroll in free bureau monitoring and place renewable Active Duty Alerts.
Actions
  • Enroll in free electronic credit monitoring with all three bureaus.
  • Place an Active Duty Alert before deployment to add extra verification for new credit.
  • Freeze your credit when not applying for new accounts.

Education

GI Bill, Yellow Ribbon, Tuition Assistance, and credentialing.

Post‑9/11 GI Bill

Core benefit
What you get
  • Tuition and fees up to the statutory cap (or full in‑state at publics).
  • Monthly Housing Allowance (BAH E‑5 w/ dependents for school ZIP; pro‑rated by enrollment).
  • Books and supplies stipend (annual cap) and one‑time rural relocation payment (if eligible).
  • Yellow Ribbon covers amounts above the cap at participating schools.
How to use
  • Apply for your Certificate of Eligibility (COE) and submit to your school certifying official.
  • Confirm VA certification each term; monitor MHA proration for online vs in‑person credits.
  • Consider transfer to dependents if eligible and service commitment is acceptable.
Rules on transferability and caps change. Confirm with VA and your school’s SCO before committing.

Tuition Assistance (TA) + Top‑Up

Pay‑as‑you‑go
What you get
  • Service TA typically covers up to $250 per semester hour, with annual caps (often $4,500).
  • TA Top‑Up lets you apply GI Bill to remaining tuition not covered by TA.
  • Use CLEP/DSST exams (via DANTES) to test out of classes where allowed.
How to use
  • Request TA through your service portal before course start.
  • Coordinate with education office to avoid double‑paying or jeopardizing GI Bill months.

Credentialing Assistance / COOL

Career‑ready
Overview
  • Army CA provides up to $4,000 per FY for approved licenses/certs; other services have COOL resources.
  • Use for CompTIA, PMP, AWS, Lean Six Sigma, trades, etc., if approved.
Steps
  • Search your service’s COOL catalog; verify alignment to your MOS/AFSC/Rating when required.
  • Apply in advance; upload quotes/invoices; complete within funding windows.

MyCAA (Spouse Scholarship)

Spouse support
What it provides
  • Tuition assistance for eligible spouses pursuing licenses, certificates, or associate degrees leading to portable careers.
How to use
  • Create account, verify sponsor rank/status eligibility, select approved program/provider, and submit Education & Training Plan for approval.

Health Care

TRICARE medical, dental, and vision options by status.

TRICARE Medical Plans

Medical
Plan types
  • Prime: managed care with PCM; minimal out‑of‑pocket for active duty families.
  • Select: PPO‑style flexibility with cost shares.
  • Reserve Select / Retired Reserve: premium‑based options for eligible Guard/Reserve.
  • Young Adult: for dependents up to age 26.
  • TRICARE For Life: wraparound to Medicare for eligible retirees.
Actions
  • Enroll/update in milConnect after life events (PCS, marriage, birth).
  • Know referral rules (Prime) and network cost shares (Select).

Dental & Vision

Dental/Vision
Coverage
  • TRICARE Dental Program (TDP) for eligible family members; active duty dental is provided separately.
  • FEDVIP dental/vision available to retirees and eligible family members.

Housing & Moving

VA home loans and PCS entitlements.

VA Home Loan

No PMI / $0 down (with entitlement)
Key features
  • No down payment with sufficient entitlement; competitive rates; no PMI.
  • Funding fee may be exempt with qualifying service‑connected disability; refunds possible if rating arrives retroactively after closing.
  • IRRRL ("VA streamline") can reduce rate or move ARM to fixed on existing VA loans.
How to use
  • Obtain your COE online or through a VA‑approved lender.
  • Shop lenders; verify funding fee category and any exemption before closing.
  • For refunds (new disability award post‑closing with retroactive effective date), file with your lender/VA.

PCS Allowances & Entitlements

Move smart
What to claim
  • DLA (Dislocation Allowance) for setup costs.
  • TLE/TLA for temporary lodging (CONUS/OCONUS rules differ).
  • HHG shipment with weight limits; PPM/DITY reimbursements if you move yourself.
  • BAH/BAS for housing and subsistence; COLA in certain locations.
Execution
  • Enter orders in DPS; book pack/pickup early.
  • Keep receipts for lodging, fuel, and weight tickets (PPM).
  • Check POV shipment/storage rules overseas.

Pay & Taxes

Allowances and tax exclusions you should not miss.

Combat Zone Tax Exclusion (CZTE)

Powerful
What it does
  • Excludes pay earned in a designated combat zone from federal income tax (limits apply for officers).
  • Triggers automatic filing/payment extensions and may increase room for Roth/TSP contributions.
Steps
  • Confirm your location is a current IRS‑recognized combat zone.
  • Verify LES coding and keep orders; use Publication 3 for rules and deadlines.

Allowances & Special Pays

Recurring
Common items
  • BAH (housing), BAS (subsistence), FSA (family separation), COLA (certain locales).
  • HFP/IDP for qualifying locations; other incentive/special pays by career field.

Retirement & Investing

BRS pension, TSP matching, and vesting rules.

Blended Retirement System (BRS)

Foundation
Snapshot
  • Pension = 2.0% × years served × high‑36 basic pay (after 20 YOS for active components; reserves adjusted by points).
  • Continuation Pay bonus typically at 8–12 YOS in exchange for service commitment.
TSP interaction
  • Automatic 1% contribution (vests after 2 years) + up to 4% matching on your 5% contributions.
  • Choose Traditional vs Roth based on tax situation; Lifecycle (L) funds for target‑date diversification.

Thrift Savings Plan (TSP)

Low cost
Keys
  • Ultra-low expense index funds (G, F, C, S, I) + target-date L Funds.
  • BRS match: 1% automatic + up to 4% match when you contribute 5% each pay period.
  • Roth can be powerful in CZTE months (tax-free in & out if qualified); Traditional defers tax otherwise.
  • Two unrestricted Interfund Transfers (IFTs) per month; additional IFTs to G Fund only.
  • Reconfirm deductions after PCS/promotion—some payroll systems don’t auto-carry settings.
Matching & Vesting (BRS)
  • Automatic 1% of basic pay goes to TSP even if you contribute 0% (starts after 60 days of service).
  • Matching: dollar-for-dollar on the first 3% you contribute, plus 50¢ per dollar on the next 2% ⇒ contribute 5% to get the full 4% match (total govt 5% with the 1% automatic).
  • Vesting: Your contributions and the match vest immediately; the 1% automatic typically vests after 2 years of service (service-specific rules).
  • Per-pay-period rule: Matching is calculated each paycheck. If you hit the yearly limit early, you can miss matching on later pay periods.
Investment Funds (G / F / C / S / I + Lifecycle)

G Fund – Government Securities: Special-issue Treasuries, principal guaranteed by U.S. government, no market price volatility; yield tracks short-to-intermediate Treasuries.

F Fund – U.S. Bond Index: Broad, investment-grade U.S. bonds; adds income/diversification; price sensitive to interest-rate moves.

C Fund – U.S. Large Cap: S&P 500-like index; core growth of large U.S. companies.

S Fund – U.S. Extended Market: Mid/small-cap completion of the U.S. market (everything not in C). Higher volatility, higher expected return.

I Fund – International Developed: Large/mid-cap developed markets (generally excludes emerging/small caps); non-U.S. diversification.

L (Lifecycle) Funds: Target-date mixes of G/F/C/S/I that auto-rebalance and glide more conservative as the target date approaches.

Traditional vs. Roth (and Combat Zone)
  • Traditional TSP: Pre-tax now, taxed later; can reduce current taxable income.
  • Roth TSP: After-tax now, qualified withdrawals tax-free later (subject to 5-year rule and age/qualifications).
  • CZTE tip: In combat zone months, consider prioritizing Roth contributions (tax-free in + tax-free growth + tax-free out if qualified).
  • You can split contributions between Traditional and Roth to fit your tax plan.
Step-by-Step Setup
  1. Always 5%+: Lock in the full match first; increase later toward the annual limit.
  2. Use L Funds for set-and-forget diversification, or DIY with a written target mix and periodic rebalance.
  3. Know the mechanics: Contribution Allocation = new deposits; IFT = existing balance.
  4. Low costs compound: TSP’s ultra-low expense ratios boost long-term outcomes vs. higher-fee plans.
Loans & Withdrawals
  • Loans: General-purpose or Residential; interest rate equals the G Fund rate at origination; repaid via payroll. Missed payments (PCS/separation) can trigger a taxable distribution—coordinate early.
  • Hardship withdrawals: For specific needs; may incur taxes/penalties and permanently remove funds from compounding.
  • After separation: Leave in TSP, roll to IRA/401(k), or take periodic/single withdrawals. Mind Roth 5-year clock, age-based rules, and future RMDs.
Common Pitfalls
  • Hitting the annual limit too early (front-loading) and missing match on later pay periods.
  • Updating only Contribution Allocation and expecting your current balance to change (you also need an IFT).
  • Forgetting to re-set your payroll deduction after PCS or system changes.
Helpful Links

Travel & Leisure

Free or discounted access to travel and recreation.

TSA PreCheck for Military

Free
How it works
  • Use your DoD ID as your Known Traveler Number to access TSA PreCheck for official and personal travel when eligible.
  • DOD civilians may opt‑in via milConnect; spouses/dependents generally must enroll separately (some discounts may apply).

National Park Military/Veteran Pass

No entrance fee
Access
  • Free annual or lifetime passes for current service members, veterans, and Gold Star Families to 2,000+ federal recreation sites.

American Forces Travel (AFT)

Discount portal
What you get
  • Exclusive pricing on hotels, flights, rental cars, cruises, events for eligible users.
  • Book online; verify eligibility when prompted.

Space‑A Travel (AMC)

Standby
Basics
  • Standby travel on military aircraft by category priority (Cat I–VI); no reservations.
  • Follow your local AMC Passenger Terminal for schedules, sign‑ups, and roll calls.

Insurance & Survivor Benefits

Life insurance during service and after, plus survivor annuities.

SGLI / FSGLI / TSGLI

During service
Coverage
  • SGLI up to $500,000 with low premiums; TSGLI rider included.
  • FSGLI covers spouses (premium paid by member) and dependent children at no cost.
  • TSGLI provides one‑time payments for qualifying traumatic injuries.

VGLI

After separation
Overview
  • Convert SGLI to renewable term coverage after leaving service; time limits apply for guaranteed acceptance.

Survivor Benefit Plan (SBP)

Retirement election
What it provides
  • Lifetime monthly annuity to designated beneficiaries based on a percent of retired pay; premiums deducted from retired pay.

Base Access & Shopping

Commissary, Exchanges, and online privileges.

Commissary (DeCA)

Grocery savings
Eligibility
  • Active duty, Guard/Reserve, retirees, and many veterans with qualifying VHIC indicators; eligible family members with proper IDs.

Exchanges

Tax‑free retail
Access
  • On‑base shopping for eligible patrons; Veterans online shopping benefit via VetVerify across AAFES/NEX/MCX/CGX.

Family Support

Child care assistance, special‑needs support, and transition.

MCCYN Child Care Fee Assistance

Reduce costs
Overview
  • DoD pays a portion of community child care costs when on‑base care is unavailable; programs like MCCYN‑PLUS expand providers.

EFMP

Special needs
What it offers
  • Enrollment and family support services for dependents with special medical/educational needs; help with assignments and resources.

Transition Assistance (TAP) & SkillBridge

Next step
Use these
  • TAP: required courses, resume help, VA benefits briefings; start 12 months before separation (24 for retirement).
  • SkillBridge: up to ~180 days for approved internships/apprenticeships with command approval.

Guard & Reserve

What differs when you’re not full‑time.

Key Differences

Part‑time force
Highlights
  • Medical via TRS/TRR premiums when eligible; dental via TDP.
  • Education via GI Bill Selected Reserve (separate from Post‑9/11 GI Bill).
  • VA home loan eligibility after qualifying service; ensure points and activations are documented.
  • Retirement based on points with age reductions for qualifying active service.

Jargon Glossary

Abbreviations and military finance terms used on this site.

BAH
Basic Allowance for Housing — Monthly stipend to help cover housing costs for eligible service members.
BAS
Basic Allowance for Subsistence — Monthly allowance for food/subsistence for service members.
BRS
Blended Retirement System — Modern military pension system combining defined benefit and TSP matching.
COE
Certificate of Eligibility — Document from VA proving entitlement for benefits (e.g., VA Loan, GI Bill).
CZTE
Combat Zone Tax Exclusion — Federal tax exclusion for pay earned in designated combat zones.
DLA
Dislocation Allowance — Lump sum to help with moving costs during PCS.
DSST/CLEP
Standardized Exams — Tests for earning college credit by exam (DANTES Subject Standardized Tests / College Level Examination Program).
EFMP
Exceptional Family Member Program — Support for dependents with special medical/educational needs.
FSA
Family Separation Allowance — Pay for service members separated from dependents due to duty.
FSGLI
Family Servicemembers’ Group Life Insurance — Life insurance for spouses and children of service members.
GI Bill
Education Benefit — VA program providing tuition, housing, and other support for education.
HHG
Household Goods — Personal property moved during PCS.
HFP/IDP
Hostile Fire Pay / Imminent Danger Pay — Extra pay for duty in hazardous areas.
IRRRL
Interest Rate Reduction Refinance Loan — VA streamline refinance for existing VA loans.
LES
Leave and Earnings Statement — Monthly pay statement for service members.
L Funds
Lifecycle Funds — TSP target-date funds that auto-rebalance as retirement approaches.
MLA
Military Lending Act — Law capping interest rates and fees for service members on certain loans.
MLA/SCRA
Military Lending Act / Servicemembers Civil Relief Act — Federal laws providing financial protections for service members.
MHA
Monthly Housing Allowance — GI Bill housing stipend based on school ZIP code.
MOS/AFSC/Rating
Military Occupational Specialty / Air Force Specialty Code / Rating — Job classification codes for service members.
MCCYN
Military Child Care in Your Neighborhood — DoD program for child care fee assistance.
OHA
Overseas Housing Allowance — Housing allowance for service members stationed overseas.
PCS
Permanent Change of Station — Relocation orders for service members.
PPM/DITY
Personally Procured Move / Do-It-Yourself Move — Option to move household goods yourself for reimbursement.
Prime/Select
TRICARE Plan Types — Prime (managed care), Select (PPO-style flexibility).
SBP
Survivor Benefit Plan — Retirement annuity for survivors of retired service members.
SGLI
Servicemembers’ Group Life Insurance — Life insurance for service members.
SCRA
Servicemembers Civil Relief Act — Law providing financial and legal protections for service members.
TA
Tuition Assistance — Service-funded tuition support for active duty and eligible Guard/Reserve.
TDP
TRICARE Dental Program — Dental insurance for eligible service members and families.
TLA/TLE
Temporary Lodging Allowance / Temporary Lodging Expense — Reimbursement for lodging during PCS.
TSP
Thrift Savings Plan — Federal government retirement savings plan with low-cost investment options.
TRICARE
Military Health Care — DoD health insurance program for service members, retirees, and families.
TSGLI
Traumatic Servicemembers’ Group Life Insurance — One-time payment for qualifying traumatic injuries.
USERRA
Uniformed Services Employment and Reemployment Rights Act — Law protecting civilian job rights after military service.
VA
Department of Veterans Affairs — Federal agency providing benefits and services to veterans.
VGLI
Veterans’ Group Life Insurance — Life insurance for veterans after separation from service.
VHIC
Veteran Health Identification Card — ID card for eligible veterans for base access and benefits.
Yellow Ribbon
Yellow Ribbon Program — GI Bill supplement for tuition above the VA cap at participating schools.
YOS
Years of Service — Used in retirement and pension calculations.
Disclaimer: Policies and amounts change. Confirm details with official sources (VA, DoD, DFAS, TRICARE, DTMO, IRS) and your local offices before acting.
Last updated: Aug 25, 2025