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The Military Financial Service Provider eNewsletter

January 2023

New Tool Helps Service Members Calculate Their Personal Net Worth

Here’s a nifty new tool you can share with service members and their spouses! The Personal Net Worth Tracker enables service members to create a personal net worth statement by itemizing their assets and liabilities. Encourage service members to use this tool to establish their financial baseline and then track their progress toward their goals on a monthly, quarterly or annual basis.

View Our Newest Media Kit for Resources on BNA, Crypto Assets and Tax Prep

This quarter’s focus is “New Year, New (Financially Secure) You” and we are developing resources on tax preparation, encouraging family finance discussions, survivor benefits and budgeting for the new year. The media kit includes planned promotions for tax season, implementation of the new Basic Needs Allowance, a fact sheet on the tax implications of crypto assets and our newest tool, the Personal Net Worth Tracker.

Upcoming OneOp Webinar: Retirement Benefit Basics: The DoD Survivor Benefit Plan

Unlock the mysteries of an important DoD benefit by attending the Jan. 31 OneOp webinar, “Retirement Benefit Basics: The DoD Survivor Benefit Plan.” This presentation helps service providers understand how the Survivor Benefit Plan and the Reserve Component Survivor Benefit Plan are calculated, the difference between them and term life insurance; and the impact on SBP when someone selects the Blended Retirement System’s lump sum option. Attendees of this no-cost webinar may be eligible for continuing education credits.

2023 Rate and Pay Changes Affecting Service Members

The new year often brings adjustments in military pay and allowances. Here are some key changes: 

• Basic pay increased by 4.6%.
• Basic Allowance for Housing (BAH) rates will increase an average of 12.1%. Find new rates here.
• Basic Allowance for Subsistence (BAS) increased by 11% (from $406.98 to $452.56 per month for enlisted personnel and from $280.29 to $311.68 for officers).

BNA Resources Available to Service Providers

Want to get the scoop on the new Basic Needs Allowance? Check out our website for a service provider conversation card and other resources that explain what this new allowance is, who may qualify and how service members can apply.

IRS Delays New Threshold for 1099-Ks

The IRS has delayed a reduction in the reporting threshold for taxpayers who earn more than $600 from selling goods or providing services that are processed through a third-party payment platform. Calendar year 2022 will now serve as a transitional period. Taxpayers will not receive Form 1099-K from the IRS for 2022 unless they exceeded 200 transactions worth at least a combined $20,000 of earnings. The new rule will take effect for all payments settled after Dec. 31, 2023.

Survivor Benefit Plan Open Season

If you support military retirees, ask if they know about the one-time open enrollment season for the Survivor Benefit Plan or Reserve Component Survivor Benefit Plan. Under the 2023 National Defense Authorization Act, retirees receiving retired pay, eligible members, or former members awaiting retired pay who are NOT currently participating in SBP or RCSBP can enroll from Dec. 23, 2022, until Jan. 1, 2024. In addition, individuals currently enrolled in those plans may disenroll during that period. Retirees may seek assistance from PFMs in understanding what open season is, how it applies to their situation and whether they should enroll. The Department is working to prepare forms, policies and processes required to facilitate SBP’s open season and will post information and instructions on this DFAS webpage as they become available.

Federal Student Loan Payment Pause Is Extended

On Nov. 22, the Department of Education announced that the pause on student loan repayments, interest and collections has been extended. The student debt relief program, which was introduced in August, is currently under litigation. Under the pause, payments will restart 60 days after the program is cleared to proceed or litigation is resolved, or no later than 60 days after June 30, 2023. The Department of Education will notify borrowers before payments restart.

Encourage Service Members To Check Out No-Cost Fitness Facilities

For service members with a private health club expense on their spending plan, remind them to check out the no-cost fitness facilities available on your military installation. Facilities vary but may include cardio and weight equipment, an indoor track, sports courts, a swimming pool, group exercise classes, certified trainers and more. Military OneSource has a searchable list of MWR fitness centers.

Service Providers and Leaders

The Office of Financial Readiness is here to support you in your mission of providing service members and their families exceptional financial knowledge and education. Here, you’ll find resources for developing your social media presence, keeping abreast of financial policies and laws, enhancing your coaching skills through training, and much more.