Comments on: Is REDUX Retirement Worth it?

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??

By: Rob Shuck

Rob Shuck — Sat, 31 Oct 2009 15:49:59 +0000

The underlying problem is that most young service members (officer and enlisted) are not given enough useful financial information at the start of their careers where it can do them the most benefit. In fact, retirement briefings occur at the end of one’s career when they should be given at the beginning. The young Soldier, Airman or Sailor would then realize that 1) a majority of them will NOT remain in the military long enough to get a retirement check, and 2) these are the best years of their lives in which to begin investing given the “magic” of compounding interest. Unfortunately, more than one person I know when presented with a choice of whether or not to take the $30K did not have enough information to make an informed decision.

By: Ryan

Ryan — Mon, 27 Jul 2009 14:07:30 +0000

Hank, in almost every situation, the High 3 Retirement System results in a higher monthly pension for military retirees – the difference is easily in the hundreds of thousands of dollars in a lifetime, if not well into the millions.

REDUX is almost never a better option – even with 40 years service (because the COLA adjustments are a huge factor). However, there may be a time when it makes sense to take the $30,000. The idea is for people to use these resources and tools to better understand their options and make an informed decision regarding the best military retirement plan for them.

By: Hank

Hank — Mon, 27 Jul 2009 13:04:15 +0000

Great analysis of the REDUX plan, but I thought that you would have taken a stronger stand for or against it. While I’m not a big fan of it, if you knew at 15 years of service that you were going to stay in another 15 or 25 years (but who knows that?!?!), maybe it would be an okay deal. But, for most people, the REDUX plan will cost you retirement income in the long run.