Military Financial Allotments are designated amounts of money subtracted from a military worker’s pay, which go to family, paying off loans from the military, or paying for life insurance.  These allotments can be discretionary or non-discretionary.  If you are an active duty serviceman, midshipman, cadet, or a reservist on EAD, you are eligible for allotments from your pay check.  Retirees also are allowed to continue allotments.  You are allowed six discretionary allotments per month and unlimited non-discretionary allotments.  

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Discretionary Allotments are as follows:

  • Payment for commercial life insurance for you and your spouse and children
  • Voluntary payment to any of your dependents or other relatives
  • Deposits to a financial institution, mutual fund company, or investment firm
  • Mortgage, rent, or car loans
  • Repaying a loan or consumer credit
  • Savings Deposit Program

Non-Discretionary Allotments are as follows:

  • Purchasing U.S. bonds
  • Repaying loans to the Army Emergency Relief, Navy and Marine Corps Relief Society, Air Force Aid Society, and American Red Cross
  • Court payments, like child support
  • Repaying debts owed to an organization administering funds from the U.S. government
  • Repaying indebtedness because of overpayment of pay or allowances
  • Paying delinquent federal, state, or local income or employment taxes

The maximum amount you are allowed to be allotted is all your standard withholdings subtracted from your total pay and allowances.  Taking out loans from military allotments is also a good idea if you need money because of better rates provided to servicemen.  However, be sure to check your credit before taking out a loan, because more competitive rates will be given to those with good credit scores.  Military personal loans are unsecured loans that are granted to active or retired servicemen.  Because they are unsecured, there is no collateral held against the loan.  There are no limits on what you can use the money on.  Payments are easy because the repayments normally happen within a specific time frame.  This is made easier because the military is aware of your salary and can expect how much and when they will receive the next payment.  

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Get started Ask a Lawyer a Question You'll hear back in one day.