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Should You Enroll in Biweekly Mortgage Payments?

There is a lot to be said for paying off your mortgage a little bit early. One way you can do that is to enroll to have your mortgage payment deducted from your bank account on a biweekly (every two weeks) basis, rather than on a monthly schedule. Some mortgage lenders and servicers are contacting borrowers to encourage them to switch to this plan. While it seems like a good idea, you need to be careful. There are advantages to paying your mortgage biweekly, but your lender’s plan may not be the best plan for you.

Should You Enroll in Biweekly Mortgage Payments?

Advantages to a Biweekly Payment

First of all, there are advantages to a biweekly payment. Lenders simply take your current mortgage bill and halve it. Then, every two weeks, the money is debited from your account. You make 26 payments a year. This means that, by the time the year is over, you have actually made the equivalent of one extra mortgage payment. Your extra payment can knock a few years off your mortgage term, resulting in you having the mortgage paid off earlier, and savings in interest charges. While it sounds like it could be a good idea, think twice. There are some items to consider before enrolling in your lender’s biweekly mortgage payment plan.

Think Twice Before Signing Up for a Biweekly Mortgage Payment

Before you commit to your lender’s biweekly mortgage payment program, find out how the mortgage works and whether or not there are fees associated with your enrollment. A biweekly payment means that the lender loses out on some of the money it would have received if you fulfilled the original mortgage terms. To make up for this, some lenders charge a monthly plan fee, or charge an upfront enrollment fee. Another thing to be wary of is a prepayment penalty. Double check your mortgage; it a prepayment penalty is involved, enrolling in a biweekly plan could be counterproductive.

If there is an enrollment fee for the plan, and you can get around it in some cases with a little math. Take your monthly payment and divide it by 12. So, if you have a monthly mortgage payment of $1,200, you will divide it by 12 to get $100. That is how much you need to pay extra each month to equal the extra amount you would be paying in a biweekly plan. Just add that amount to your monthly mortgage payment, and there is no need to enroll in a special plan.

Other Ways to Use the Money

You should also consider other uses for the extra money you’ll be putting toward your mortgage if you sign up for biweekly payments. If you still have other debt with higher interest rates, it might be in your best interest to pay that down first. Any savings you get from making a biweekly mortgage payment could be negated by the higher interest you are paying on credit cards. You might be better off putting that extra mortgage payment toward debt reduction.

Another consideration is to build an emergency fund. If you already have an emergency fund in place, then consider how that money could be working harder for you. In some cases, you might decide it would be better to put that extra mortgage payment amount in your retirement account. There is a chance that you will see better returns on that money, offsetting the interest you might have saved with biweekly mortgage payments and an early mortgage payoff.

In the end, it’s about figuring out the best use for your money. Consider your financial goals, and what you are willing to risk. You should only enroll for a biweekly mortgage payment plan if it makes sense in your situation.

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How to Take a Thrift Savings Plan Loan

The Thrift Savings Plan is similar to a 401k employer-sponsored retirement savings fund except it is used by the federal government. One of the benefits of employer-sponsored retirement plans is the ability to take advantage of tax benefits for retirement savings. The catch is once you make the contribution to the retirement account, you have to leave it there until retirement, unless you are willing to pay early withdrawal fees. However, there are some instances when you can gain access to your contributions before retirement age. Like a 401k, the Thrift Savings Plan allows participants to borrow against it under certain circumstances and conditions.

How to Take a Loan From Your Thrift Savings Plan

Here are the 6 things you need to know about borrowing from your Thrift Savings Plan account:

  • You must have at least $1000 of your own contributions and earnings in the account to borrow money. You can not borrow from agency contributions or earnings. The maximum amount of money you can borrow is $50,000.
  • You must be currently employed as a federal civilian employee or a member of the uniformed services to borrow money from you Thrift Savings Plan. Retired and separated individuals are not eligible for a loan.
  • You must be in pay status. The loan repayments are deducted directly from your paycheck.
  • You must not have repaid a previous loan of the same type in full within a 60 day period.
  • You have not had a tax distribution on a loan within the past 12 months, unless it resulted from your separation with Federal service.
  • You may still borrow from your Thrift Savings Plan account even if you have stopped making contributions with your own money.

Comparing Thrift Savings Plan Loans and Hardship Withdrawals: TSP loans require you repay the money you borrow; a TSP Hardship Withdrawal does not require you to repay the withdrawal. However, you will have to pay any associated taxes, penalties, and fees for early withdrawals.

Considerations Before Borrowing from Your TSP

There are two types of Thrift Savings Plan loans available from a TSP account. You can get a general purpose loan or you can use the loan to purchase a primary home. The money must be paid back, usually through direct deductions from payroll checks. There is no penalty for prepaying the loan and if a person is planning to retire or leave federal service, the loan must be repaid before then. Loans not repaid will result in the TSP declaring a taxable distribution for the balance of the due principle and interest.

Advantages and Disadvantages of Borrowing from Your TSP

When you borrow from your TSP, there are some advantages including paying yourself a decent amount of interest instead of giving the money to a third-party lender. Additionally, in the event of job loss or other problem resulting in the non-repayment of the loan, your credit will not be affected.

Disadvantages of the TSP loan include the fact you are paying taxes twice. You move tax-deferred assets into a state of taxation. After tax income is used to pay the loan. At the time of withdrawal during retirement, income tax must be paid again on the same funds.

When you take a loan against the TSP you also lose the growth ability of the account. Removing assets from your account will affect how much you will ultimately save. For those making repayments, they may not be able to contribute as much as they once hand.

Another disadvantage of the loan on a TSP is the potential tax penalty when you default on the loan repayment. You will end up paying federal and maybe state income taxes on the amount you did not pay. If you are not age 59 ½ at the time you default on the loan, you will pay early withdrawal penalties of 10% imposed by the IRS.

Conclusion: Thrift Savings Plan loans and 401k loans are available if you need access to your money, but there are risks involved. It is best to seek other alternatives before withdrawing funds from your retirement account.

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Troops to Teachers Program

If you are a military veteran who is interested in becoming a teacher, then you should look into the Troops to Teachers Program, which was launched by the US Department of Education and the Department of Defense in 1994. It is designed to assist eligible military members start a new career as teachers in public school environments.

In 2002, then President George Bush signed into law the ‘No Child Left Behind Act of 2001’. Part of the law included the continuation of the Troops to Teachers program for an additional five years. The program places an emphasis on developing quality teachers for schools and districts in urgent need of teachers in American schools.

Troops to Teachers Program

How the Troops to Teachers Program Works

The Education Appropriations Bill was passed through Congress which give $18 million for financial assistance as part of the Troops to Teachers program. Financial assistance is offered to eligible service members in stipends of up to $5,000 to help pay for the costs associated with teacher certifications. The recipients of the stipends require teachers to agree to teach in school locations meeting the Department of Education criteria for a period of three years.

There are also bonus awards of up to $10,000 for those military members who agree to teach in schools which serve a high percentage of students coming from low-income families. Funds are dependent on availability of monies and eligibility of military personnel.

Mission of the Troops to Teachers Program

The goal of the Troops to Teachers program is to help relieve the burden of teacher shortages in school districts, especially in the areas of math, science, and special education. The program also actively works with military personnel to make a successful transition from a military career to a career in teaching in public schools. The Troops for Teachers program has a network of state offices which provide counseling and help with teacher certification requirements, job leads for employment, and resume preparation.

Troops to Teachers Program Eligibility

In order to determine eligibility for the Troops for Teachers program, military members can take a self-determination test available online through the program’s website. Depending on the current status of your military membership, you will have to answer a series of questions to determine eligibility.

A complete list of eligibility requirements can be found on the TTT website. In general, the service requirements for military members for eligibility include Active or Selected Reserve personnel who are either:

  • Retired
  • Separated with six or more years of creditable service towards retirement on or after October 1, 1990
  • Separated with a service-determined physical disability on or after January 8, 2002 and registered within four years after separation
  • Current members with six or more years of creditable service towards retirement. The last period of service must be in honorable status. Personnel selected to participate in the Troops for Teachers Program before retirement, separation, or release from active duty may continue to participate but only if the last period of service is characterized as honorable.

Military personnel must also meet one of the following education requirements:

  • Must hold a Baccalaureate or advanced degree from an accredited institution at the time of program registration and in a teacher certification program or licensed as a teacher for referral in that subject.
  • Must have the equivalent of one year of college with six years of work experience in a vocational or technical field or meet state requirements for vocational/technical teacher referral.

Military members who do not meet the last two requirements can use their GI Bill benefits or tuition assistance to achieve the educational requirements. They can apply for the Troops to Teachers Program once they achieve the required educational levels.

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The Military Spouses Residency Relief Act

On November 11, 2009, the Military Spouses Residency Relief Act was signed into law.  The United States government felt this legislation was needed to reduce the burden military families faced when filing income tax returns.  Here we take a look at this legislation and how it affects military families.

The Military Spouses Residency Relief Act

What is it the Military Spouses Residency Relief Act?

The Military Spouses Residency Relief Act (Public Law 111-97, S. 475) is designed to provide relief from certain tax restrictions placed on the spouses of military servicemembers.  Prior to this Act being signed into law, a military servicemember was permitted to use their home state as their legal state of residence regardless of where they were stationed.  Unfortunately the same rules did not apply to the (non-military) spouses of these men and women.  As a result, the non-military spouses were required to file his or her state taxes in the state in which they were stationed versus their “home” state.  Beyond taxation issues, when a person is required to change their state of residency, there are other issues that arise such as voting, car registration and even savings plans such as 529′s used to save for college tuition.

How does the Military Spouses Residency Relief Act work?

This law makes it possible for the non-military spouse to retain their home state of residency only if the reason for leaving was a result of a permanent change of station (PCS) for their military spouse.  Under this legislation, non-military spouses are able to file their state taxes in the same state as their spouse.  Because the military spouse retains their original state of residency or home state status, the new state in which they reside will not be able to tax earned income.

What does it mean for military spouses?

As a result of this legislation, the way married couples file their tax returns will change if the non-military spouse opts to retain their home state of residency.  If the non-military spouse earns income in the state in which they are stationed, that state may still withhold state income taxes.  This means the individual will be required to file a state tax return to recover their withheld taxes and in turn file a joint resident return with their military spouse in their home state.

There have been no changes to how non-military income is taxed in a state other than your home state.  For example, if a servicemember stationed in another state has a part time job that is not related to the military, that state is permitted to tax this non-military income.  When this situation occurs, the military spouse will file a nonresident return and pay tax in the state in which they are living and earning the non-military income.  When filing their tax return in their home state, they will see an out-of-state credit for taxes paid in the state in which they reside.

There can be pros and cons for this tax status, depending on your situation. Military families who have questions regarding how the  Military Spouses Residency Relief Act affects their taxes can seek advice from a tax professional in their state of residency as well as the state in which they currently reside.  It is important that all servicemembers and their spouses to understand how this Act affects their tax filing status.

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What is the GI Bill Yellow Ribbon Program?

The Yellow Ribbon Program for GI Bill was created as part of the Post 9/11 Veterans Educational Assistance Act of 2008.  The Yellow Ribbon program allows universities and colleges which grant degrees in the United States to enter an agreement with the VA.  The agreement will enable the VA and the higher education institution to split the costs 50/50 of  any tuition expenses that go above and beyond the cost of the highest public in-state undergraduate tuition – meaning people who qualify for the Yellow Ribbon program can attend any degree-granting institution for the price of the highest priced undergraduate state school tuition.

Yellow Ribbon Program for GI Bill

Who Benefits from the Yellow Ribbon Program?

If you have served at least 36 months of active duty after September 10, 2001, you are probably eligible for the Yellow Ribbon Program.  You may also be eligible if you were honorably discharged from active duty for a disability caused during service, provided you served at least 30 continuous days of service after September 10, 2001.  Eligibility can also be extended to dependents eligible for Transfer of Entitlement under the Post 9/11 GI Bill based on a veteran’s service.

You must be also be eligible for maximum benefits under the Post 9/11 GI bill in order to qualify for the Yellow Ribbon Program.

What Do Eligible Recipients of The Yellow Ribbon Program Receive?

If you are eligible for the Yellow Ribbon program under the Post 9/11 GI Bill, you’ll receive funding to cover the amount of tuition and fees that exceed the highest public state undergraduate tuition and fees.  This allows you to attend a private institution, graduate school, or attend a state school where you are not a resident.

Schools which participate in the Yellow Ribbon Program voluntarily will choose the amount of money to be contributed per eligible recipient; and the VA will match the amount and make their payment directly to the institution on behalf of each recipient.

Participating Colleges and Universities Requirements

Participating colleges and universities of the Yellow Ribbon Program must agree to provide funds to qualified Yellow Ribbon applicants on a first-come, first-served basis; within the current academic year and in all subsequent academic years while the student maintains attendance requirements and satisfactory academic performance.  The school must also state the maximum number of people per academic year may receive the contributions, and state the dollar amount that is contributed on behalf of each participant of the program during the academic year.  The funds must be made toward the program, on behalf of the recipient in the form of a scholarship or grant.

How Do I Apply for the Yellow Ribbon Program?

Each participating educational institution can establish their own application procedures for students.  They also determine how many students per year may receive funds under the Yellow Ribbon Program.

You must also apply for an educational institution that offers the Yellow Ribbon Program – a list of 2010 – 2011 schools sorted by state is available here: http://www.gibill.va.gov/GI_Bill_Info/CH33/YRP/YRP_List_2010.htm

To learn more, visit: Yellow Ribbon Program.

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United States Military Phonetic Alphabet

You’ve probably seen military movies before where the actors portraying military members recite a series of words and numbers that don’t seem to make any sense. You were most likely hearing the Military Phonetic Alphabet, which is an open code used to communicate letters phonetically to ensure the communication is clear.

Military Phonetic Alphabet

Why does the military use the Military Phonetic Alphabet?

Because many letters sound similar when recited over the phone or radio. Think of all the letters that end with a long “E” sound: B, C, D, E, G, P, T, V, Z. These letters can sound similar when run together quickly or over a crackled radio or poor phone connection. When you see the corresponding letter/word combination in the Military Phonetic Alphabet you will see there is very little room for error.

Why use an open code for the Military Phonetic Alphabet?

I know what you’re thinking – What good is a code when everyone knows it? The point of the Military Phonetic Alphabet isn’t to hide communications, it is to communicate more effectively by eliminating errors. The Military Phonetic Alphabet reduces the chances of misinterpreting the verbal communication because each letter/word combination is unique enough that it can’t be confused with another letter, but the sounds of individual letters can be easily confused.

The other thing to remember is that the Military Phonetic Alphabet is most often used in open communications that aren’t necessarily secret, but need to be quickly and accurately understood. Think for example, of an air traffic controller directing an airplane toward to the correct approach or heading. The Military Phonetic Alphabet is also used to label sectors or divisions on a map or encampment. For example, it is easier for everyone if a row of tents is labeled Alpha Row, Bravo Row, etc., than if each row of tents was given a traditional “street name” like Main Street, Maple Lane, etc.

Did you know there are other phonetic alphabets used by other military services? See this list from Wikipedia.

What is the Military Phonetic Alphabet?

  • A – Alpha
  • B – Bravo
  • C – Charlie
  • D – Delta
  • E – Echo
  • F – Foxtrot
  • G – Golf
  • H – Hotel
  • I – India
  • J – Juliet
  • K – Kilo
  • L – Lima
  • M – Mike
  • N – November
  • O – Oscar
  • P – Papa
  • Q – Quebec
  • R – Romeo
  • S – Sierra
  • T – Tango
  • U – Uniform
  • V – Victor
  • W – Whiskey
  • X – X-ray
  • Y – Yankee
  • Z – Zulu

Having Fun With the Military Phonetic Alphabet

The Military Phonetic Alphabet can be used for inside jokes and “hidden” communications. It can also be found in pop culture, on TV, radio, and even in the name of a record album, such as Yankee Hotel Foxtrot, by Wilco.

This is Romeo Yankee Alpha November Golf, signing off.

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Veterans’ Benefits Act of 2010 Signed Into Law

President Obama recently signed H.R. 3219, The Veterans’ Benefits Act of 2010, into law. The Veterans’ Benefits Act of 2010 improves and modernizes a variety of benefits and programs for military veterans and their families.

These benefits, administered by the Department of Veterans Affairs (VA), specifically enhance the following veterans benefits:  enhanced employment opportunities and small business programs, preventing and caring for homeless veterans, Increasing the scope of the Servicemembers Civil Relief Act, increasing insurance limits, protecting service members called to combat, honoring fallen service members and their families, strengthening education benefits, addressing housing needs of disabled veterans, and investing in research for Gulf War veterans. These benefits are broken into the following sections, or Titles, which are listed below, then in more detail.

  • TITLE I—Employment, Small Business, and Education Matters
  • TITLE II—Housing and Homelessness Matters
  • TITLE III—Servicemembers Civil Relief Act Matters
  • TITLE IV—Insurance Matters
  • TITLE V—Burial and Cemetery Matters
  • TITLE VI—Compensation and Pension
  • TITLE VII—Employment and Reemployment Rights of Members of the Uniformed Services
  • TITLE VIII—Benefits Matters
  • TITLE VIIII—Construction

Veterans’ Benefits Act of 2010

Title: To amend title 38, United States Code, and the Servicemenbers Civil Relief Act to make certain improvements in the laws administered by the Secretary of Veterans Affairs, and for other purposes

TITLE I—EMPLOYMENT, SMALL BUSINESS, AND EDUCATION MATTERS

  • Extend authority for certain qualifying work-study activities for purposes of the educational assistance programs of the Department of Veterans Affairs Reauthorization of Veterans’ Advisory Committee on Education.
  • Reauthorize the Veterans’ Advisory Committee on Education.
  • Provide an 18-month period for training of new disabled veterans’ outreach program specialists and local veterans’ employment representatives by National Veterans’ Employment and Training Services Institute.
  • Clarify responsibility of Secretary of Veterans Affairs to verify small business ownership.
  • Establish a demonstration project for referral of USERRA claims against federal agencies to the Office of Special Counsel.
  • Establish a pilot program for veterans’ energy-related employment program.
  • Provide a list and link of organizations that provide scholarships to veterans [Pat Tillman Veterans’ Scholarship Initiative].

TITLE II—HOUSING AND HOMELESSNESS MATTERS

  • Reauthorize appropriations for Homeless Veterans Reintegration Program.
  • Make grants to programs and facilities to provide dedicated services for homeless women veterans and homeless veterans with children.
  • Develop new assistive technologies for specially adapted housing.
  • Waive housing loan fee for certain veterans with service-connected disabilities called to active service.

TITLE III—SERVICEMEMBERS CIVIL RELIEF ACT MATTERS

The Servicemembers Civil Relief Act already covers a wide range of benefits for military members, including reduced interest rates on loans when they join the military, the ability to delay civil proceedings while deployed, and other benefits. The act improves the following matters:

TITLE IV—INSURANCE MATTERS

There are a variety of insurance benefits available to military members when the separate from the service. These benefits have been enhanced by the Veterans’ Benefits Act of 2010.

  • Increase in amount of supplemental insurance for totally disabled veterans.
  • Create a permanent extension of duration of Servicemembers’ Group Life Insurance coverage for totally disabled veterans.
  • Adjust coverage of dependents under the Servicemembers’ Group Life Insurance.
  • Allow the opportunity to increase the amount of Veterans’ Group Life Insurance.
  • Eliminate the reduction in amount of accelerated death benefit for terminally-ill persons insured under Servicemembers’ Group Life Insurance and Veterans’ Group Life Insurance.
  • Consider the of loss of dominant hand in prescription of schedule of severity of traumatic injury under Servicemembers’ Group Life Insurance.
  • Enhance veterans’ mortgage life insurance.
  • Expand the number of individuals qualifying for retroactive benefits from traumatic injury protection coverage under Servicemembers’ Group Life Insurance.

TITLE V—BURIAL AND CEMETERY MATTERS

The US Military already provides free military burial for veterans. The following benefits have been enhanced.

  • Increase in certain burial and funeral benefits and plot allowances for veterans.
  • Allow interment in national cemeteries of parents of certain deceased veterans.
  • Report on selection of new national cemeteries.

TITLE VI—COMPENSATION AND PENSION

  • Enhance disability compensation for certain disabled veterans with difficulties using prostheses and disabled veterans in need of regular aid and attendance for residuals of traumatic brain injury.
  • Provide a cost-of-living increase for temporary dependency and indemnity compensation payable for surviving spouses with dependent children under the age of 18.
  • Pay dependency and indemnity compensation to survivors of former prisoners of war who died on or before September 30, 1999.
  • Exclude certain amounts from consideration as income for purposes of veterans pension benefits.
  • Commence a period of payment of original awards of compensation for veterans retired or separated from the uniformed services for catastrophic disability.
  • Apply limitation to pension payable to certain children of veterans of a period of war.
  • Extend reduced pension for certain veterans covered by Medicaid plans for services furnished by nursing facilities.
  • Codify pension amounts.

TITLE VII—EMPLOYMENT AND REEMPLOYMENT RIGHTS OF MEMBERS OF THE UNIFORMED SERVICES

Making the transition from military service to the civilian sector can be a challenge. Thankfully, military members are eligible for unemployment benefits when they separate from the military, which gives them some time to make the transition. Most State Department of Veterans Affairs offer assistance with job placement.

  • Clarify that USERRA prohibits wage discrimination against members of the Armed Forces.
  • Clarify the definition of ‘‘successor in interest.’’
  • Make technical amendments.

TITLE VIII—BENEFITS MATTERS

  • Increase in number of veterans for which programs of independent living services and assistance may be initiated.
  • Allow payment of unpaid balances of Department of Veterans Affairs guaranteed loans.
  • Expand eligibility of disabled veterans and members of the Armed Forces with severe burn injuries for automobiles and adaptive equipment.
  • Enhance automobile assistance allowance for veterans. [$18,900 indexed to CPI-U]
  • Allow for National Academies review of best treatments for Gulf War illness.
  • Extend and modify National Academy of Sciences reviews and evaluations regarding illness and service in Persian Gulf War and Post 9/11 Global Operations Theaters.
  • Extend authority for regional office in Republic of the Philippines.
  • Extend an annual report on equitable relief.
  • Authorize the performance of medical disability examinations by contract physicians.

TITLE VIIII—CONSTRUCTION

  • Authorize major medical facility leases.
  • Authorize VAMC in New Orleans. [up to $995,000,000 – amending current law]
  • Authorize seismic corrections on buildings 7 and 126 at the Long Beach VAMC. [up to $117,845,000 – amending P.L. 109-461]
  • Authorize appropriations for major construction projects and leases authorized herein.
  • Require that bid savings on major medical facility projects of Department of Veterans Affairs be used for previously authorized major medical facility construction projects of the Department.

Overall, these benefits offer greater assistance to a range of military veterans, specifically those requiring the most assistance, including those with traumatic injuries and other service connected disabilities, homeless and underemployed, and more.

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Massachusetts Military Veterans Bonus

Veterans who lived in the state of Massachusetts immediately prior to entry in the armed forces or deployment may be eligible for a Massachusetts Military Veterans Bonus.  The Commonwealth of Massachusetts provides these bonuses to veterans or in the case of a deceased veteran, their surviving spouse, children, parents, siblings or other dependents who would also be eligible to receive the bonus.  Surviving family members would be granted the eligible bonus in the order which they appeared above.

Massachusetts Military Veterans Bonuses

The bonuses that veterans may be eligible for include the following bonuses: World War II, Korean War, Vietnam War, Persian Gulf War and the Welcome Home Bonus.  The following information applies to veterans who served in any of above mentioned wars or conflicts.

Massachusetts Military Veterans Bonus Eligibility Requirements

  • World War II: Veterans who meet the definition of a Massachusetts Veteran (as amended by the Acts of 2005) may be eligible for three separate bonuses.  A $100 bonus for veterans who served in active duty from one day to six months, $200 for veterans who performed stateside service for six or more months and $300 for those who performed foreign service. More information.
  • Korean War:  Veterans who meet the definition of a Massachusetts Veteran (as amended by Acts of 2005) may be eligible for three separate bonuses.  A $100 bonus for servicemembers who performed 90 days stateside, $200 for veterans who performed six months or more and $300 for any servicemember serving one or more days outside the continental US. More information.
  • Vietnam War:  To receive the $200 Vietnam War Veterans Bonus, servicemembers must have performed active duty between July 1, 1958 and May 16, 1975.  This bonus is rewarded to those who served for six months or more.  Vietnam veterans who served on duty in Vietnam will receive a $300 bonus. More information.
  • Persian Gulf War: Servicemembers who served between August 2, 1990 and April 10, 1991 for thirty or more days are eligible for the Persian Gulf War Veterans Bonus.  Those called to duty in areas other than the Persian Gulf receive $300.  Veterans who were called to duty and served in the Persian Gulf (war zone or surrounding waters) who have also received the Southwest Asia Service Medal will receive $500. More information.
  • Welcome Home Bonus: To be eligible for the Welcome Home Bonus, veterans must have resided in the state of Massachusetts for at least six months prior to joining the armed forces beginning on September 11, 2001.  Those who served in Iraq or Afghanistan will receive $1,000; those who served stateside or outside the continental limits of the US for six months or more of active duty will receive $500. More information.

Veteran who are not eligible: Veterans who have received a dishonorable discharge or those that do not meet the requirements above will not be eligible to receive the specified bonus.  If the veteran in ineligible, surviving beneficiaries would also be ineligible.

How to Claim the Massachusetts Military Veterans Bonus

How To Claim the Veterans Bonus. For veterans or surviving relatives interested in claiming a Massachusetts Veterans Bonus, applications are available online at the Treasurer’s website.  To contact the Treasurer, individuals may use the following address for all bonuses listed here:

Office of the Treasurer
One Ashburton Place, 12th Floor
Boston, MA 02108

The telephone number to call for the World War II Bonus is 617-367-3900, extension 308.  For the Korean War Bonus or Vietnam War Bonus, call 617-367-3900, ext 208.  Those calling in reference to the Welcome Home Bonus can call 617-367-9333, ext 350.

For Persian Gulf veterans only:
Veterans’ Bonus Division, Department of Veterans’ Services
600 Washington Street, Suite 1100
Boston, MA 02111
(617) 210-5927
www.mass.gov/veterans
Email: mdvs@vet.state.ma.us

Applicants and their relatives may be required to provide proof of residency or next of kin documentation or certain service records to prove eligibility.

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How to Redeem US Savings Bonds

US Savings Bonds are a popular investment tool for individuals who want a safe place to invest their cash with a better return on their investment than the standard savings account.  US savings bonds are often given as gifts to children, family members or students.  Unlike money that is invested in a savings account which is insured by the FDIC, savings bonds are backed by the United States government.  While many consumers are familiar with savings bonds and the many benefits associated with this type of investment vehicle, there are several questions that often pop up regarding how to redeem or cash in this investment.  The answers to the following questions will help individuals navigate the process of redeeming their US savings bonds.

How to Redeem US Savings Bonds

How Much Are US Savings Bonds Worth?

There are several ways to determine how much your savings bonds are worth.  US savings bonds can be taken to the bank to determine their current value or you can calculate the value by entering information regarding the savings bond into an online calculator.  Savings bond calculators can be found on several websites with one of the most popular being Treasury Direct which is brought to you by the US Department of Treasury Bureau of Public Debt.  Regardless of the option you choose to determine the value of your savings bonds, you will have to have the actual bonds in hand to get an accurate calculation.  When using the Treasury Direct website, you will be able to save the information in your own “inventory” should you want to revisit this information in the future.

Where Can You Redeem US Savings Bonds?

Most financial institutions can handle the redemption of US savings bonds.  Contact your local bank before taking the bonds in for redemption to ensure they do in fact handle that sort of transaction.  You will be asked to show a valid ID to prove ownership or if the bond is not in your name, proof that you are the rightful heir entitled to the savings bonds.  It is recommended that you confirm with the bank in advance what form of identification or other documents will be required to redeem your bonds.  If you purchased US savings bonds from Treasury Direct, you can redeem the bonds electronically by following the directions provided by the website.  Your money will be credited to the designated bank account electronically, usually within one day.

Special Requirements to Consider When Redeeming US Savings Bonds

Individuals who are inherit savings bonds, manage their children’s savings bonds or live outside of the United States may be required to take additional steps to redeem savings bonds.  Beneficiaries must present evidence that proves they are the rightful owner of the bond as well as a certified copy of the decedents death certificate.  Parents may redeem savings bonds issued to their minor children by requesting such action in writing.  Individuals living outside of the US can visit Treasury Direct for detailed instructions on how to redeem US savings bonds under a variety of circumstances.

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Iowa Military Veterans Bonus

The Iowa Vietnam Conflict Veterans Bonus became effective as of July 12, 2007 and is for individuals who served active duty for a minimum of 120 days in the armed forces of the United States between July 1, 1973 and May 31, 1975 who were also legal residents of the state of Iowa for a minimum of six months prior to beginning their active duty service.  There are two levels of compensation under the Iowa Vietnam Conflict Veterans Bonus; one level for individuals serving at least part of active duty in Vietnam service area and another level of compensation for those who did not.

Iowa Vietnam Conflict Military Veterans Bonus

Eligibility Requirements for Iowa Vietnam Conflict Veterans Bonus

To be eligible for the Iowa Vietnam Conflict Veterans Bonus, a veteran must have served on active duty for a minimum of 120 days in the United States armed forces between the dates of July 1, 1972 and May 31, 1975. The veteran must have also been a legal resident of the state of Iowa for at least six months prior to entering active duty service.

The veteran must have been honorably discharged or separated from active duty service, be retired, still in active service in honorable status, or has been furloughed to a reserve during the dates between July 1, 1972 and May 31, 1975.

A veteran who has earned a Vietnam service medal or armed forces expeditionary medal in Vietnam can use the medal to establish their eligibility for active service during the time period required for the Iowa Vietnam Conflict Veterans Bonus.

Compensation Under Iowa Vietnam Conflict Veterans Bonus

Bonus for service in the Vietnam service area. Individuals meeting eligibility requirements will receive $17.50 for each month the person was in active duty service in the Vietnam service area.

Bonus for service outside the Vietnam service area. Eligible individuals will receive $12.50 for each month the person was in active duty during specified dates but not in the Vietnam service area.

If you served six months in Vietnam and six months outside the Vietnam service area, your compensation would be $17.50 x 6 = $105; and $12.50 x 6 = $75 for a total compensation payment of $180.

Maximum compensation must not exceed $500.

Compensation for partial months is awarded for days served over 16 in a month, and the fractional month of service is computed as a full month of service, therefore receiving the full $17.50 or $12.50 – depending where you served during that month.

Compensation is provided to surviving widows or children or parents of deceased veterans meeting eligibility requirements for the Iowa Vietnam Conflict Veterans Bonus.

Any compensation received under this bonus will not be subject to income tax.

How to Apply for the Iowa Vietnam Conflict Veterans Bonus

If you feel you are eligible for the Iowa Vietnam Conflict Veterans Bonus, fill out the application here: https://va.iowa.gov/images/VCVBApp.pdf. All applications must include the veteran’s DD 214, military discharge paperwork and proof of residency. Here is information regarding how to replace your DD Form 214 if you have lost yours.

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