Mustering-Out Payment Act

Mustering-Out Payment Act - Authorizes mustering-out payments for specified members discharged from the Armed Forces after August 4, 1964. Provides for such payments in the amount of $400 for such members who performed active duty for ninety days or more and who served outside the continental limits of the United States. Provides for such payments in the amount of $250 for those whose duty was served within the continental United States.

Specifies members of the Armed Forces ineligible for such payments because of voluntary discharge to accept employment, inactive status, a period of duty solely as a student, service performed for the purpose of entry to a service academy, or service solely as a cadet at a service academy. (Adds 38 U.S.C. 2101-2105)

Excludes from gross income under the Internal Revenue Code the mustering-out payments made under this Act.