Retired Pay Tax Withholding

"...All non-disability retired pay is subject to withholding of federal income taxes. The amount withheld is dependent upon the taxpayer's amount of wages and the number of exemptions claimed..."

Read more at Military.com

Increase Federal Tax Withholding on Military Retirement Pay

"...Because your military retirement pay is deposited electronically each month, it may be "out of sight--out of mind." But not having enough federal tax withheld can leave you owing money in April you hadn't planned on. Fortunately, the Defense Finance and Accounting Service (DFAS) in Cleveland makes it easy to adjust your withholding tax..."

Read more at eHow.com