Top Tax Traps Military Families Must Avoid

**Not Harvesting Tax Losses** - By reviewing investments annually and selling off declining assets for deductible losses offsetting any taxable gains, military families retain more wealth instead of overpaying IRS taxes.

**Missing Retirement Account Rollovers** - Frequent moves between bases makes keeping track of 401Ks and Pentagon TSP accounts challenging. Allowing multiple accounts to languish costs years of optimized tax-deferred growth essential for income replacement.

**Mishandling VA Disability Pay** - Years after injuries, honourable discharges or exposure to hazards like burn pits, critical missteps in applying for and transferring disability pay can significantly reduce retirement wealth.

**Improper Home Sales After PCS Moves** - Failing to qualify for capital gains tax exemptions when selling homes after Permanent Change of Station (PCS) relocations results in huge tax bills decreasing savings.

**Not Updating Beneficiaries** - Divorces, deaths in the family, new children all require proactive updates to beneficiaries of retirement accounts, SGLI insurance payouts and more. Outdated designations sabotage intended recipients.  

In the prime of military careers filled with responsibilities and transitions, addressing small planning gaps pays exponential rewards later on. With so much on the line for retirement, specialists urge periodic check-ups to optimize wealth retention.

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We've been working with California medical doctors for over 30 years, but you don't have to be in California to check on your retirement plans and see if you need to improve. In fact, you can start with a no-cost evaluation with us, in-person in our Roseville office, or online.

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