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[BEGIN PUBLIC SERVICE ANNOUNCEMENT]
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My daughter is active duty Air Force in Germany and over the weekend I asked and said that the Payroll Deferment was going to change military pay and they were not given a choice. Her plan is to sock the money way in her savings account to make up for the bigger tax bill next year. (Ya, my daughter is pretty smart.)
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So I checked DFAS today and Payroll Deferment will also be hitting retiree pay, it didn’t see any option to opt in or not so it looks like it will be required. We are comfortable enough to not NEED the money now so it will be put away in a said account until it has be to be paid back later.
[END BEGIN PUBLIC SERVICE ANNOUNCEMENT]
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So, If you are military or retired how does this impact you?
Personally it’s not doing a thing because the logic of deferring taxes, to be paid pack later, to get money into the hands of people has a logical hole. If you aren’t working you aren’t paying taxes and if your are working is a “loan” of that tax money going to do you any good in the long run.
My current employer will not be opting into the program so our families primary pay check isn’t impacted by the tax deferral. (Well my wife employer isn’t opting in either so really it’s both.)
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.WW, PSHS
