Is it true that one will be discharged from the US Army for winning the lottery or receiving a large inheritance?

I live in Canada, but have never heard of anyone being released from the Army due to winning a lotery or receiving any inheritance. What happens in your private life is no on else's business. There are people in the Army that come from very wealthy families. Don't know where you heard this, but it's rediculous.

Its happened before.

http://www.news.navy.mil/search/display.asp?story_id=11549

They don't automatically throw you out, no. I have heard--don't know if it's true or not--that it's possible to buy out your contract if you win the lottery.

I don't know...I think if I was still in and I won the lottery, the second thing I'd do (the FIRST thing I'd do is to stop by my security office and report the fact because suddenly having a lot of money gets you investigated if they don't know where it came from) would be to buy a Rolls-Royce and use it to get to work.

b- This situation falls ,technically, under a 'hardship" separation. You would advise your commander and under a large financial windfall the US military COULD allow you to exit your contract. There are several factors that go into that process. You are not automatically removed from your duties by simply 'coming" into a large amount of assets. This does not mean you are automatically removed from your duties in fact you CAN stay in the service and complete your contract. However, if you were put through school by the military, you would be liable for repaying the military branch in entirety for the cost of your education if you separated under the financial "hardship" clause.