As a lieutenant straight out of college, you will make about $34,000 a year in basic pay. As an officer, your pay depends on your rank and time in service. If youâre a doctor or pilot, there are some special pay considerations and bonuses.In four years, you can be making $47,000â$55,000 as a captain.s an officer, your pay depends on your rank and time in service. If youâre a doctor or pilot, there are some special pay considerations and bonuses. In four years, you can be making $47,000â$55,000 as a captain.
Since you are under the age of 59 and a half, you are likely subject to a 10 percent IRS penalty for early withdrawal of the Simplified Employee Pension (SEP-IRA). This 10 percent penalty is in addition to the ordinary income tax you would normally pay if you withdrew from your SEP-IRA after you passed the aforementioned age threshold.
The SEP stands for simplified employee pension. It is an individual retirement account or IRA, into which employers can make retirement contributions for themselves and their employees. Compared a 401(k) retirement plan, a SEP IRA is relatively simple to start and manage. There's far less paperwork and annual filing. Plus, annual contribution limits are much higher than you'll find in most other retirement plans. As with other tax-advantaged retirement plans, contributions to a SEP IRA can be invested tax-deferred until the money is withdrawn at retirement, beginning at age 59 1/2 and no later than age 70 1/2.