Comments on: Is REDUX Retirement Worth it?

By: Ryan

Ryan — Wed, 19 May 2010 12:12:30 +0000

Battle, I don't believe so, based on this pdf document from the DoD comptroller's office. If in doubt, contact your personnel office for more information.

By: Battle Summerville

Battle Summerville — Wed, 12 May 2010 19:45:52 +0000

If a soldier does not apply for Redux during the normal 15 years of Active Duty, and they reach 19 years plus, are they still entitled to the CSB? thanks

By: Ryan

Ryan — Mon, 10 May 2010 20:59:13 +0000

Brad, based on what I have read, you can receive the REDUX payment tax free if you are in a deployed zone. However, making the decision in a deployed zone will not affect your retirement payments (they will remain taxable).

Even if you receive the REDUX payment tax free, you still may not come out ahead in the long run I encourage you to use the REDUX calculator in the article, which sends you to a DoD page. The calculator will give you information on if/when you will break even in the long run, and even tell you how much the difference will make decades from now.

In most cases, REDUX is a losing proposition.

By: Brad

Brad — Mon, 10 May 2010 20:55:53 +0000

How much of the REDUX is taxable once you have made the decision to take it? If I am a deployed soldier is the REDUX tax exempt? How much should I really be expecting?

By: Ryan

Ryan — Thu, 25 Mar 2010 17:07:07 +0000

Stack, I would think it depends on several factors, including how long past 20 years you serve, inflation rates, cost of living, etc. Check out thisREDUX calculator from the DOD website. Hopefully that will help you with your question.

By: Stack

Stack — Wed, 24 Mar 2010 15:32:40 +0000

Does anyone know what rate of return on your 15 year payment would be needed to eliminate the gap between the two retirement options?

By: Ryan

Ryan — Wed, 03 Mar 2010 20:34:32 +0000

Daway, I’m not sure what you mean by “contributions” to the retirement. Do you mean the pay you receive as part of the your retirement compensation? If so, then yes, your retirement compensation is reported to the IRS and is taxable income. There may be a portion of your income that is not taxable if you are receiving disability compensation.

By: Daway

Daway — Wed, 03 Mar 2010 20:27:17 +0000

The High 3 Average Retirement System
Are the contrubution to this retirement reported to the IRS and can the contributions be included in your yearly taxes.

By: Ryan

Ryan — Sun, 10 Jan 2010 01:22:08 +0000

Robin, The Reserves program may have different requirements for retirement. I suggest he contact the Reserves personnel department for more information.

By: robin

robin — Sat, 09 Jan 2010 20:47:09 +0000

does the Redux expire….example, my husband was in reserves 16 yrs ago and he didn’t realize that those years counted toward his retirement, so now he is at the 16 yr mark already but no one has ever talked to him about Redux, is to late??