Leaving the Military in Florida: What to Do With Your TSP, Pension, and SBP

Nobody Warns You About the 90-Day Clock#

The financial decisions you make in the 60–90 days around your military retirement date carry consequences that play out for decades — and most service members make them with less preparation than they'd give a mid-career PCS move. MacDill AFB and the Tampa Bay corridor concentrate the impact of these decisions on Central Florida.

I wish I had known about the SBP decision before I was sitting in the retirement brief. They give you a packet, tell you the deadline, and then you're supposed to figure out one of the biggest financial decisions you'll ever make in a week.

The TSP Decision: The Most Misunderstood Answer#

The Case for Staying in the TSP

TSP expense ratios of 0.04%–0.06% are among the lowest available anywhere. The G Fund provides Treasury-level returns without interest rate risk — something you cannot replicate in an IRA. Starting January 2026, the TSP will allow in-plan Roth conversions for the first time, weakening one of the historical reasons to roll out.

The Case for Rolling to an IRA

A rollover may be right if you need a broader investment universe, are executing a Roth conversion strategy better suited to an IRA, or want the estate planning flexibility of a Roth IRA with no lifetime RMDs. Florida's no-income-tax environment makes rollover-plus-Roth-conversion especially attractive — every converted dollar faces only federal tax.

The SBP Decision: Do Not Guess#

At retirement you have 90 days to elect Survivor Benefit Plan coverage. The premium is 6.5% of covered retired pay; the benefit is 55% of that pay to your spouse for life. The election is largely irrevocable. The analysis interacts with VA DIC, your spouse's expected income, and whether term or permanent life insurance is a more cost-effective substitute. This is the single decision where you should not rely on a general planner.

BRS, CRDP, and CRSC#

Service members under the Blended Retirement System who aren't contributing at least 5% to the TSP are leaving a guaranteed 100% government match on the table. For retirees with VA disability ratings, the choice between Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC) — including the fact that CRSC payments are tax-free — has a real monthly dollar impact for decades.

Florida's Military Financial Advantages#

• No state income tax on military retired pay, VA disability, or civilian wages
• 100% property tax exemption for veterans rated 100% service-connected
• Proportional property tax reductions for ratings 10%–99%
• Additional homestead benefits beyond the standard $50,000

Pre-Separation Checklist#

1. Run a TSP rollover analysis before you separate, not after
2. Model the SBP decision with someone who has done it dozens of times
3. Start your VA disability claim as early as possible
4. Determine CRDP vs. CRSC eligibility
5. Model Year 1 post-transition income for federal bracket impact
6. Update beneficiary designations
7. Establish Florida residency correctly for property tax exemptions
8. Review your estate plan for the civilian context

Our Local Recommendation#

This is not financial, tax, or legal advice. The content on this page is provided for general educational and informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security or financial product. Nothing here should be relied upon as a substitute for personalized advice from a qualified fiduciary advisor, CPA, or attorney who knows your specific situation. This site is sponsored by Emerge 180 Wealth Management; no advisor paid for editorial inclusion. Always independently verify any advisor's credentials, regulatory history, and fee structure before engaging their services.