Calls to exempt Title 26 USC 401(k) Guard and Reserve employee and government contribution limits from the new “blended retirement” plan.

Under the new blended retirement program, some Guard and Reserve members will be forced to surrender some of their civilian retirement if they want to contribute to their military retirement because of contribution limits set by the IRS. Many individuals work in civilian jobs with 401k retirement programs when not in military service. For example, while members could split the $18,000 (2015) limit between the two places of employment, they would be undercutting their retirement pensions in both their civilian and military retirement plans. EANGUS met with senior leaders from the Pentagon, and they expressed that it was not their intent to reduce retirement benefits for Guard and Reserve through tax law. EANGUS believes this was an unintended consequence due to being unfamiliar with Title 26.

The Enlisted Association of the National Guard of the United States urges Congress to exempt Title 26 USC 401(k) Guard and Reserve employee and government contribution limits from the new “blended retirement” plan.