Congratulations to all Blue Water members on your transition from military service.
Mike asked me to say hello and point you toward a few tax issues worth thinking about as you transition.
I'm Mark Kennedy, CPA, founder of Target Wire Accounting & Tax. I'm also a retired Navy officer and airline pilot, and have personally navigated many of the same decisions.
By the time you're working with Blue Water, the career side of your transition is in good hands. I had the pleasure of serving and flying with Mike, and know you working with a very capable team.
I focus on the tax-planning side: military retirement income, state residency, civilian compensation and withholding, and tax-advantaged retirement and Roth planning. These are areas that can change significantly when you leave active duty—and they're much easier to address before the tax return is due.
The goal isn't simply to reduce this year's tax bill. It's to understand how the decisions you're making today affect your long-term after-tax financial position.
As a member of Blue Water Advisors, you are invited for a complimentary Transition Tax Conversation
In this complimentary 30-minute conversation, we'll:
Discuss where you are in your military-to-civilian transition
Identify changes that could affect your tax situation
Discuss your financial and tax-planning priorities
Identify areas that may warrant a deeper analysis
Determine whether a tax-planning engagement makes sense
No preparation or document gathering is required for this initial conversation.
What Changes When You Leave Active Duty?
Your last military paycheck doesn't simply get replaced by a civilian paycheck. Your entire tax picture can change.
Multiple Sources of Income
Military retirement, civilian wages, spouse income, bonuses, consulting income and investments may all hit the same tax return.
State Residency
The rules you've lived under while on active duty may change after retirement. Where you live and work can suddenly have a meaningful tax impact.
Withholding
DFAS and your civilian employer don't coordinate with each other. Each may withhold correctly on its own—and you can still end up owing a significant amount at tax time.
Retirement Planning
A new 401(k), your existing TSP, Roth accounts and military pension create opportunities that should be considered together.
Consulting & 1099 Income
Side work or consulting can introduce self-employment tax, estimated payments, business deductions and entity decisions.
New Compensation
Bonuses, RSUs, stock options and other executive benefits may be completely new territory after a military career.
The goal is simple: identify the issues early, make informed decisions, and avoid expensive surprises at tax time.
Below are a few quick resource articles for Blue Water Advisors Members
Transition Tax Resources