Title 10 — Armed ForcesRelease 119-73not60
§1403 Disability Retired Pay: Treatment Under Internal Revenue Code of 1986
Title 10 › Subtitle Subtitle A— General Military Law › Part II— PERSONNEL › Chapter 71— COMPUTATION OF RETIRED PAY › § 1403
Summary
Any retired pay worked out by years-of-service formulas that is higher than the amount based on a disability percentage is not treated as a pension or similar injury/sickness payment under IRC section 104(a).
Full Legal Text
Title 10, §1403
Armed Forces — Source: USLM XML via OLRC
That part of the retired pay of a member of an armed force, computed under formula No. 1 or 2 of section 1401, or under section 1402(d) or 1402a(d) of this title on the basis of years of service, which exceeds the retired pay that he would receive if it were computed on the basis of percentage of disability is not considered as a pension, annuity, or similar allowance for personal injury, or sickness, resulting from active service in the armed forces, under section 104(a) of the Internal Revenue Code of 1986.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised sectionSource (U.S. Code)Source (Statutes at Large) 140337:272(h).Oct. 12, 1949, ch. 681, § 402(h), 63 Stat. 820.
Editorial Notes
References in Text
The Internal Revenue Code of 1986, referred to in text, is set out in Title 26, Internal Revenue Code.
Amendments
1987—Pub. L. 100–26 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954” in section catchline and text. 1980—Pub. L. 96–513 substituted “the Internal Revenue Code of 1954” for “title 26” in section catchline and text. Pub. L. 96–342 inserted reference to section 1402a(d) of this title.
Statutory Notes and Related Subsidiaries
Effective Date
of 1980 AmendmentAmendment by Pub. L. 96–513 effective Dec. 12, 1980, see section 701(b)(3) of Pub. L. 96–513, set out as a note under section 101 of this title.
Reference
Citations & Metadata
Citation
10 U.S.C. § 1403
Title 10 — Armed Forces
Last Updated
Apr 3, 2026
Release point: 119-73not60