Military Allotments Explained: Discretionary vs Not

An allotment is one of the most useful tools in military pay and one of the most abused. It is simply an instruction to peel a fixed amount off your pay before it reaches your bank and send it somewhere every month. The same mechanism that makes it a great automatic-savings habit is what predatory sellers once used to reach directly into a paycheck. Here is how it works, and how the rules now protect you.

Two kinds of allotment

Type	What it is	Limit
Discretionary	You choose it: savings, rent, insurance, family support, aid-society loan repayment	Up to 6
Non-discretionary	Required or court-directed: child support, alimony, debts to the government	No separate cap

Total allotments are capped at 15 per month. The distinction matters because the six-allotment limit only applies to the voluntary ones. A garnishment for child support does not use up a slot you would rather spend on savings.

The good use: automation you control

Discretionary allotments are a clean way to make good money habits automatic:

• Pay yourself first. An allotment to a savings or investment account moves the money before you can spend it.
• Cover fixed bills from the source. Rent or an insurance premium paid by allotment cannot be missed because you forgot to log in, which matters most during a deployment.
• Repay interest-free aid. Military aid society loans are usually repaid by a voluntary allotment, at 0%.
• Feed the Savings Deposit Program. During a deployment, an allotment can fund your 10% guaranteed SDP deposit automatically.

Because you manage these in myPay, redirecting one you no longer need takes minutes.

The trap the rules closed

For years, the reach of an allotment into a guaranteed government paycheck was exactly what made it dangerous. Retailers and lenders outside the gate sold overpriced cars, laptops, and furniture on credit, then secured repayment with an allotment that was nearly impossible to stop. Two protections dismantled that model:

1. The Military Lending Act bars requiring one. A creditor extending covered credit cannot make repayment by military allotment a condition of the loan. Demanding an allotment to approve you is a red flag and likely a violation.
2. The 2015 DoD rule bans allotments for personal property. Effective January 1, 2015, you are not authorized to start an allotment to purchase, lease, or rent personal property, such as vehicles, electronics, appliances, or furniture. This closed the near-base retailer loophole directly.

If a seller or lender is steering you toward an allotment, that is your cue to walk. The honest paths are a base credit union or an aid society, and if you are already stuck in a predatory loan, the SCRA and MLA give you exits. For which cap applies to which debt, see the SCRA-versus-MLA breakdown.

Use the tool, avoid the trap

Put allotments to work for you

1. Set a discretionary allotment to savings or investments so you pay yourself first, automatically.
2. Route fixed, must-not-miss bills (rent, insurance) by allotment or autopay before a deployment.
3. During deployment, use an allotment to fund the Savings Deposit Program’s 10% deposit.
4. Never agree to an allotment as a condition of a loan or a purchase near base. The MLA forbids requiring it, and DoD bans allotments to buy personal property.
5. Manage and stop allotments yourself in myPay (or DD Form 2558). Redirect any you no longer need into savings.
6. Being pressured toward an allotment by a seller or lender? Take it to your installation legal assistance office.

This page is general education, not financial advice. Allotment rules and limits can change; confirm current details in myPay, with your finance office, or through the free financial counselors at Military OneSource.

The law behind this: 10 U.S.C. § 987

The Military Lending Act, which bars requiring repayment of covered credit by military allotment — read the statute.