Financial stability and security is an important part of supporting Surviving Family Members today and in the future. There are several resources available to eligible family members to help you adjust to financial changes and plan for the future.
HEART Act of 2008 - The Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act Public Law 110-245, §109) allows recipients of the death gratuity and/or SGLI to contribute all or part of the payments received to a Roth IRA and/or a Coverdell Education Savings Account (CESA) without the usual restrictions on contributions or distributions. Contributions must be made within one year of receiving the benefits. Bottom line if you are the recipient the death gratuity and/or the SGLI, you can protect and grow these assets for long-term financial security. For more information click here to read the HEART Act for Beneficiaries
Beneficiary Financial Counseling Service (BFCS) - This service provides SGLI beneficiaries with free, professional financial advice from Financial Point, an independent company whose team of professionals are experts in handling a wide range of financial matters. This is free to eligible beneficiaries under a contract with the Veterans Administration. Beneficiaries can access this service online 24/7 to request a financial plan. *Note: BFCS is available for two years from the date the claim is paid. This includes 40 hours of personal counseling over the two years and access to the program’s online resources.https://www.benefits.va.gov/insurance/bfcs.asp
MilTax - Military life can make for tricky taxes. To help, the Defense Department offers MilTax software through Military OneSource. It’s built to account for deployments, combat and training pay, housing and rentals, multistate filings, living OCONUS and more. Visit the Military OneSource Website for more details: https://www.militaryonesource.mil/financial-legal/tax-resource-center/miltax-military-tax-services/
Financial Readiness Program – This program can provide general information about military benefits, spending plans, retirement, TSP, debt repayment, tax planning, identity theft, managing consumer credit, and consumer safety and rights – the Army’s Personal Financial Counselors and Managers (PFCs and PFMs) offer education. *Note the PFCs and PFMs cannot provide investment advice. To find a PFC or PFM visit the Army’s Financial Readiness website:https://www.financialfrontline.org/
(Current as of 27 Apr 2022)