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