Deploying to CZTE: SDP Options/Recommendations

Background:

• Deploying for 12 months to CZTE.

• Financially able to open SDP on day 30 and fully fund by day 60 (will have to reduce allotments/TSP for 2nd month IOT meet the SDP non-allocated requirement).

• Will also fully fund both Roth TSP and Roth IRA for 2024 CY and 2025 CY.

• Will most likely not be able to fully fund annual addition limit to Traditional TSP each year ($46k/year with no BRS contributions, being on the old "High 3" retirement system).

If I am understanding the following line from the DFAS SDP site, compounding interest is for SDP account balances of less than or equal to $10k, so any interest acquired on a fully funded account should be removed quarterly (after disbursement) and allocated elsewhere?

• "SDP Interest compounds monthly and is paid quarterly at a rate of 10% on balances of up to $10,000. Any amount in excess of $10,000.00 will not accrue interest."

From the above, which of the following 3 main options would you do if you were trying to max your returns after 12 months?

Option 1: Put $10k in SDP, set it and forget it, and be happy with an extra $1k after a year (regardless of missing ~$38 in compounding interest).

Option 2: Put $10k in SDP and remove the $250 quarterly to reinvest elsewhere (Traditional TSP or Money Market).

Option 3: Put $9286 in SDP, set it and forget it as it will compound perfectly to $10k after the 3rd quarter and $10250 upon removal. (This option also allows for $714 extra to go towards the Traditional TSP annual addition limit)