Dan Clayton says the cap hit stays if he retires... Only way it comes off is under medical retirement. Would take a year and he doesn't have a medical issue.
http://saltcityhoops.com/offseason-qa-1-favors-korver-current/
CBA FAQs says addresses this...
13. Exactly what is included when computing total team salaries? What is cap room? What is a cap hold?
A team's cap room (referred to simply as "room" in the CBA) refers to its ability to sign players to free agent contracts. If a team is above the cap, then its room is limited to the exceptions it possesses. If the team is below the cap, then its room is how far it is below the cap when all salaries and cap holds are included. Cap holds are "placeholders" for players the team is expected to sign in the future. For example, a team is expected to sign its unsigned first round draft pick, so an amount is reserved for this signing in the form of a cap hold. A team $10 million below the cap with $4 million in cap holds therefore has $6 million in room. A team $5 million under the cap with $6 million in cap holds is not considered to be under the cap at all, and must use exceptions to sign players. The following are included in team salary:
- Salaries of all active and inactive players1, including likely bonuses.
- The full season salary of any players the team acquires in midseason trades.
- Salaries paid or payable to waived players, minus any set-off amounts2 and subject to the Stretch provision (see question number 65).
- Any salary still being paid to retired players (see question number 61).
Keep stacking them Ls... waiver process yesterday... retirement cap hit... then doubling down declaring me to be the one taking the L