Baby Step 4 of the Ramsey Plan recommends saving 15% of your gross income for retirement. This guide explains how to structure those savings using a 401(k), Roth IRA, or taxable brokerage depending on your income, filing status, and employer plan access. Key rule: “Match beats Roth, Roth beats Pre-Tax.” Whether you're single or married, with or without a plan, there’s a strategy to fit your situation. Consult a financial advisor to create a plan that works for you.

Combat pay is tax-exempt at the federal level but still subject to Social Security and Medicare taxes. Service members can contribute this income to their TSP, with Roth TSP being the most beneficial option—offering both tax-free contributions and tax-free growth. Contributions from combat pay don’t count toward annual limits, allowing greater retirement savings potential. Keep records of your pay and consult a financial advisor to track and manage TSP rollovers effectively.