Im confused...i thought you got the (for example) 1500 a month for my 80% disabilty...plus the Severance check from the army because i was rated below 30% DOD side....am i wrong?
pay question
- Thread starter swift56487
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rgr thank you mike you have been a big help
Ok...so, what's the benefit of the severance not being taxed in the third example? I mean, you shouldn't be taxed on that money anyway, correct; since the VA is taking it?
Can you opt out of VA comp and merely take severance?
The benefit is that you get the whole severance check right away and don't have to fight to get the tax offset back once it is offset by tax-free VA. I suppose one can opt out of VA by simply not applying for VA but I know of no case where that would make sense. The sooner you begin collecting VA the sooner the severance is recovered, the sooner you get all your VA without offset. If I wait to file for VA (more than a year), I lose all the VA benefits in the meantime and once I start collecting VA they will then offset my severance (assuming the unfitting condition is rated 10% or more). I prefer more money to less money and the only way to do that is to file for VA right away.
If you know of an scenario where it makes sense not to file for VA please send it as I need to understand it.
Mike
If you know of an scenario where it makes sense not to file for VA please send it as I need to understand it.
Mike
As you know, IDES cases can't really not apply for VA. I guess what I'm saying is why does the DoD even bother giving something that has to be paid back?
Can you opt to not take severance so you can start collecting full VA right away?
I don't know of any case that would make sense not to file for VA unless the severance was somehow a substantial amount of money. Even then, in the long run probably not worth it.
IDES cases apply for VA as part of the IDES process where they add claimed conditions. If found unfit they get proposed VA ratings (for all conditions) that are applied once separated and verified.
Think of severance as an advance on future VA payments. If transitioning, would you rather have $50,000 to be paid back interest free via recouped VA payments or would you rather have no severance and an additional $200 a month in VA payments for the next 250 months ($50,000)? You get the same amount either way but I would rather have the money up front. I could put it in the bank, pull out $200 a month to make up for the recouped VA payments and keep the interest. I would also have a nest egg for emergencies standing by. Bottom line, I can manage my money better than the government so if they want to give it to me early I will not stand in their way. Time is money - a dollar today is worth more than a dollar tomorrow.
Mike
Think of severance as an advance on future VA payments. If transitioning, would you rather have $50,000 to be paid back interest free via recouped VA payments or would you rather have no severance and an additional $200 a month in VA payments for the next 250 months ($50,000)? You get the same amount either way but I would rather have the money up front. I could put it in the bank, pull out $200 a month to make up for the recouped VA payments and keep the interest. I would also have a nest egg for emergencies standing by. Bottom line, I can manage my money better than the government so if they want to give it to me early I will not stand in their way. Time is money - a dollar today is worth more than a dollar tomorrow.
Mike