Why do we need this legislation? This legislation is important for members of the National Guard because:

Beginning in 2018, individuals entering the National Guard will receive government-matched retirement contributions in their Thrift Savings Plan (TSP) accounts. Current tax code limits all individuals under the age of 55 to contributing $18,000 toward their retirement each year. Future members of the National Guard, who max out their employer-contributed retirement account, could lose out on their government-matched TSP accounts. NGAMN strongly supports HR 905- Service Member Retirement Improvement Act. This bill would stop the IRS from stifling Guard or Reserve service members' ability to save for their retirement. This bill would give Reserve Component service members the opportunity to fully participate in the military TSP part of the new blended retirement without compromising both their civilian and military retirement plans. HR 905 would allow members of the National Guard to max out their employer-contributed retirement account and their government-matched TSP account. It is important to remember the Military Compensation and Retirement Modernization Commission, which proposed a blended retirement entitlement, did not intend for Guard and Reserve members to lose benefits. We believe the bill will encourage Guard, and Reserve members to contribute to their military TSP plan and prevent a negative impact to recruiting and retention.

2019 legislation for this issue is HR 905 “Service Member Retirement Improvement Act”