Terminal leave, explained

Terminal leave is regular leave you take at the very end of your service, so your last days on the books are days off. Done right, it's a paid head start on civilian life. Done wrong, it turns into a scramble at out-processing. Check every number here with your finance office and personnel office before you plan around it.

What it actually is

• You're still on active duty for the whole time. You're still paid, still covered by TRICARE, and still subject to military rules.
• Your separation date doesn't move. Terminal leave is taken before it, and your DD-214 is dated your real last day.
• It comes out of your leave balance. You can't take more than you've earned by your separation date.

Take it or sell it

• Selling leave back pays out unused days as base pay only, taxed as income. There's a career limit on how many days you can ever sell, and days you've already sold count toward it.
• Taking it as terminal leave keeps your full pay and allowances coming for those days, which usually works out to more money.
• You can split it: take some, sell some. Run the numbers with finance.

How to plan it

• Six months out: check your leave balance on your LES and figure out what you'll have by your date. Avoid burning leave you'll want at the end.
• Ask about PTDY (permissive TDY) for job and house hunting. It doesn't come out of your leave balance, and the days allowed depend on whether you're separating or retiring and where you're stationed.
• Get it approved in writing through your chain of command. The leave form and your separation orders need to line up.
• Finish out-processing before your leave starts. Final appointments, turning in gear and signing your DD-214 all have to happen while you're still in the building.
• Plan your household goods move around your leave dates, not the other way around.

Starting a job on terminal leave

• Many people start civilian work during terminal leave. It's a common way to avoid a pay gap.
• Federal civilian jobs have extra rules about starting while you're still on active duty. Talk to the hiring agency's HR office and your finance office before you accept a start date.
• Get permission if your service requires it for outside employment while on leave.

Common mistakes

• Assuming you'll have more leave than you actually will.
• Starting leave with appointments still open.
• Moving out of base housing or out of the area before your DD-214 is signed.
• Selling leave without checking how many days you've already sold over your career.

Official sources: your finance office and personnel office, your branch's leave regulation, and DFAS (dfas.mil). This guide is general information, not official guidance.