Originally Posted by
Elcam
Also if you take the VSP and then go to the reserves and retire down the road as an AGR you will have to pay it back. I've got a friend that just got a 4 year set of orders and will most likely get another set and will have to repay the VSP that he got 2.5 years ago.
Keep in mind that you pay it back over time with your retirement checks, so if you're still working, it's not that bad. In other words, they don't take it all back in one lump sum. Also, you only have to pay back the after-tax amount. I was refunded about $17,000 that I had paid in taxes (out of about $25,000) the year after I received my VSP and won't ever have to pay that back when I retire. Also, the chances of you getting on enough Active Duty orders for an Active Duty retirement are not that good. In other words, your friend's situation is not the norm. Good info though.