How Do Allotments Work Through Defense Finance And Accounting ...

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Defense Finance and Accounting Services (DFAS) is the agency that handles military pay. An allotment is a way to withhold or distribute money from a service member’s military paycheck. There are two types of allotments, discretionary and non-discretionary:

• Discretionary allotments can be used for expenses such as rent, car payments, loan payments, and voluntary payments to dependents.
• Non-discretionary allotments are expenses such as child and spousal support, court-ordered payments, government indebtedness (which includes indebtedness to any department or agency of the U.S. Government and assistance funds such as Army Emergency Relief loans (AER).

Service members are allowed six discretionary allotments per month and any number of non-discretionary allotments so long as the total allotments are no more than 15 per month.

Allotments are split evenly between two paychecks per month. For example, a $500 allotment would deduct $250 from the first paycheck of the month and $250 from the second paycheck of the month. Allotments can be started and stopped through the myPay website or using DD Form 2558.

For additional information, see www.dfas.mil.

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