Comments on: Is it Better to Sell Back Leave or Take Terminal Leave?

By: Daniel

Daniel — Mon, 02 Apr 2012 21:52:29 +0000

Thanks for the advice that’s exactly what I did. And that’s exactly what happened. So if you live in the barracks take as much terminal as you possibly can.

By: Arch

Arch — Mon, 02 Apr 2012 06:35:31 +0000

By Oct 1st, 2012 I will have 9489 points. What happens if I submit my retirment for Oct 1st? Will I be shorting myself 26 years of service? I really don’t want to stick around for another 30 days reach Nov 1, since retirements occur on the 1st of the month.

By: Ryan

Ryan — Thu, 08 Dec 2011 15:26:48 +0000

Todd, the 25% tax rate was what the government charged me when I sold leave about 6 years ago. The rate was automatic at the time, but it may have changed. I recommend contacting your finance department to verify this.

Regarding the BAH, BAS, medical, and other benefits: Yes, you are correct, the payment for selling leave is only computed from base pay. So the choice really comes down to whether or not you want to work up to, or close to, your scheduled termination date.

There are some people who view selling leave as missing out on benefits since they could earn their full pay and benefits without having to work, while other people don’t mind working up to, or close to, their termination date, and then selling the leave so they can have an extra chunk of money when they separate. It really comes down to personal preference as to which is better.

Best of luck with your transition, and thanks for yours service!

By: Todd

Todd — Thu, 08 Dec 2011 15:01:28 +0000

I’m retiring 1 July 2012 and I’ll have roughly 56 days of leave between now and then to either use, use & sell part, or sell all of it. You mention that the cons when you sell leave are that you do not get benefits such as BAH, BAS, medical benefits, or incentives such as special duty pay. Not sure I’m following that logic since sold leave is based on base pay and not your BAH, BAS, Medical Benefits, or special duty pay? Ex: If I choose to sell 26 of my 56 days of leave remaining and just use 30 for terminal leave – I don’t lose my BAH, BAS, etc. during those 26 days I sold, I just forced to continue working while I’m waiting for my terminal leave to kick in and not take leave. I am also amazed at the taxable rate of 25%, what is your source for that statistic, just curious? Thanks for the informative article and I look forward to your reply.

By: Ryan

Ryan — Tue, 01 Nov 2011 16:12:03 +0000

Thad, you will typically receive the money from terminal leave after your retire, usually within about 2 weeks. Also keep in mind that your retirement pay doesn’t start until the month after you retire. So it’s a good idea to have a couple months of living expenses lined up while you adjust to your new income (and just in case there are any unexpected surprises). Thanks for your service!

By: Thad

Thad — Tue, 01 Nov 2011 15:53:51 +0000

Official retirement date is 1Apr2012. I’m going to take some terminal leave before that date and sell some leave back. Will I receive the money for selling leave before my retirement date or after?

By: Leonard

Leonard — Tue, 13 Sep 2011 12:37:15 +0000

Hey Daniel,

You will receive BAH and comrats when on terminal. Since the military will no longer be providing you with housing and a meal card and you are still under contract, they are legally binded to providing you with the extra means of payment.

By: Ryan

Ryan — Wed, 17 Aug 2011 14:30:52 +0000

Hi Daniel, it’s been several years since I separated from the military, but I believe I received my standard paycheck when I was on terminal leave. At the time I was living off base, so I am pretty sure I received BAH and BAS. It’s very possible the military will continue to pay you as if you were living on base, but I’m not 100% certain. My recommendation is to contact your unit finance office and ask them to verify how your terminal leave will be determined.

Thanks for your service.