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Author: 3muttsmom Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: New job question Date: 11/26/2004 4:11 AM
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who thinks, with the cost of health insurance, he would be better with option 2

I'm confused by this. I guess I wasn't clear. In option 1 he would pay his own insurance via the company - I'm estimating $38 per bi-monthly paycheck. In option 2, I'd add him to my insurance at work which would raise my premiums by $51 per bi-monthly paycheck.

I don't really think the insurance is the issue. I realize that the FICO, taxes, etc. would be paid by us directly in option 2, but since I'm a CPA, I have no problem dealing with this.

The real issue I'm thinking is the loss of the tax deductibility of his 401(k) contributions plus the 3% matching. We'd have only taxable accounts available to us, I believe. Unless the SEP IRA option would be available.

I'm just trying to check my math and make sure I'm not missing anything. Taxes, FICO, etc. will be the same in either case, just whether we write a check directly or it's subtracted from his checks before we get them.

thanks for your reply
3MM
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