Is military deposit pretax?


Q. If I set up a payroll deduction to pay my military deposit, are the payments pretax items on my leave and earnings statement, like with the Thrift Savings Plan, or do they get taxed like other earnings? If I make the payment with a lump sum, is there a way to deduct that on my taxes? If so, what do I need to do?

I am a current FERS employee. I am at the point of paying back my military deposit for my six years active duty. I will either pay a lump sum by check or set up a payment schedule with my payroll office to end before interest is recalculated.

A. Your military deposit isn’t a pretax item, nor is it tax-deductible, whether you make the deposit over time or in a lump sum.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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