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Can a military thrift savings plan (TSP) be subject to equitable distribution in a divorce case?

April 26, 2017Case distribution divorce equitable Military Plan savings Subject Thrift TSP

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Can a military thrift savings plan (TSP) be subject to equitable distribution in a divorce case?

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Yes. The National Defense Authorization Act allows servicemembers to contribute up to 7% of their basic pay to a Thrift Saving Plan (TSP). The Military does not offer any matching funds from the federal government. In summary, a military thrift savings plan is very similar to a private sector 401(k) plan. The individual’s taxes are deferred on the contributions and appreciation until they are disbursed. A military thrift savings plan is treated just like any other retirement asset. The thrift savings plan must be valued and it will be distributed via a Qualified Domestic Relations Order (QDRO).