Question

An airman deployed to a combat zone tax exclusion area may be eligible to contribute more than the annual elective deferral limit to a traditional thrift savings plan account

A. True
B. False

Answer 1

Service members deployed to combat zones may have the ability to contribute beyond the standard limit to a Traditional Thrift Savings Plan due to combat zone tax exclusions, subject to current IRS rules and TSP provisions.

Step-by-step explanation:

An airman deployed to a combat zone tax exclusion area may indeed be eligible to contribute more than the annual elective deferral limit to a traditional thrift savings plan account. This is because combat zone tax exclusions provide special tax benefits, which include the possibility of exceeding standard contribution limits to retirement accounts like the Traditional Thrift Savings Plan (TSP). However, it is important to check current IRS guidelines and provisions specific to the TSP for the most accurate and updated contribution limits and eligibility criteria.