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Waiver of Retired Pay

handing over pay

Under certain circumstances a military retiree may choose to waive part or all of their military retirement pay. A waiver is the relinquishment of all or a portion of one benefit to qualify for another benefit. Veterans frequently waive only so much of their retired pay as is equal to the amount of VA disability compensation to which they are entitled. Since this compensation is not taxable but retired pay from the Armed Forces based on age or... more

Video Helps Retirees Avoid Owing Back Taxes

Taxes

According to the IRS, almost half of the unpaid taxes owed by current and retired federal employees are owed by retired military servicemembers. Most often, this is because these retirees don't know enough about their tax obligations. For this reason, the Armed Forces Tax Council, the American Bar Association and the Internal Revenue Service produced a 13-minute information video outlining steps you can take to ensure you don't end up having ... more

The Military Retirement System (Part 2)

Red question mark

In Part One we looked the basics of each retirement system. In this article we'll break it down and provide you with some basic comparisons to assist you in making what could be the "choice of a lifetime." Eligiblity: If you entered the service after August 1986 you are eligible to choose either the High 36 retirement system, or the Career Status Bonus/REDUX (CSB) retirement system. If you decline to make a choice you will automatically rece... more

Taxable Income From Retired Pay

Income taxes

Retired pay, like other income, is subject to Federal income taxation unless wholly or partially exempted by statute. The Defense Finance and Accounting Service in Cleveland (DFAS-CL) computes the amount to be withheld from retired pay and withholds this amount. Every year, no later than the 25th of January, DFAS-CL will send you an Internal Revenue Service (IRS) Form 1099-R which will show all the taxable retired pay paid and the amount of ta... more

Suspension of Pay

Gavel with a scale and an open book.

Military retirement pay may be suspended to comply with statutory or regulatory requirements, or Military Department procedures. Such suspensions are not necessarily permanent. When a retired member is missing and there is no information concerning the member's whereabouts, the member's retired pay must be suspended from the date that the member was last known to be alive. The following is a summary of the suspension of retirement pay: ... more

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