BRAC vs. annual leave

0

Q: Could you tell me if the payout on Base Closure and Realignment Leave and the payout for annual leave is the same? I was told that the BRAC payout is taxed at a higher rate.

A. Both are taxed at the same rate. The IRS considers lump-sum payments to be regular income, with deductions being taken out for federal taxes and, where applicable, state taxes and Social Security.

Share.

About Author

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

Leave A Reply