Using Allotments - Military Consumer

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Using Allotments

Allotments are payroll deductions, and a way to pay for things directly from your paycheck —before you see the money. Most people use them to pay for things like life insurance or repaying a military loan. DoD won’t let you set up allotments to pay for things like vehicles, furniture, electronics, and jewelry.

Know if you’re eligible to set up an allotment.

• Active duty service members, midshipmen, cadets, and reservists on extended active duty are eligible to set up allotments from their pay.
• Retirees can set up an allotment or continue existing allotments as part their transition from active duty.

Know what’s discretionary and what’s non-discretionary.

• Discretionary allotments include payments to non-government organizations. You can set up as many as 6 discretionary allotments. An example might be regular deposits to your savings account.
• Non-discretionary allotments are payments to government organizations. You can set up as many as 15 allotments to pay the government for things like buying a savings bond. The government also might set one up for you to pay overdue taxes or a loan from a military relief agency.

Visit your PFM or unit financial advisor to discuss your spending plan. Allotments can be helpful because they let you meet your long-term goals bit by bit. Consider how many allotments will work with your budget and how they fit into your short and long-term financial planning, including your savings goals.

Ready to set up an allotment? Talk to your administrative officer to get an allotment in place, using Form DD2558.

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Learn More

Defense Finance and Accounting Service

CFPB: Protecting Servicemembers From Abuses of the Military Allotment System

Military OneSource: Deductions, Allotments, and What Comes Out of Your Military Pay

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