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 an allotment or continue existing allotments as part their transition from active duty.
- Know what’s discretionary and what’s non-discretionary.
- Discretionary allotments: you can set up as many as 6 allotments to pay non-government organizations. An example is regular deposits to your savings account.
- Non-discretionary allotments: 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 budget. Allotments are helpful because they allow you to 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.
- Talk to your administrative officer to get an allotment in place, using form DD2558.