Decreasing 401k contributions to offset health plan increase
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
After finishing the taxes, we decided to decrease my husband’s 401k contributions from 20% to 10% with the intention of putting this money into our Roth IRAs. The next day, we get a letter in the mail with regards to our health care plan.
They have changed the salary tiers and the contribution limits. My husband now falls into a higher tier (if he made $1 less, he would still be in his lower tier). The contribution limits have also increased. When all is said and done, he is now making less than he did before his raise after he transferred to a new position at the end of last year.
Ironically, he works for a company that deals with health care products that is still trying to convince their employees that “they come first”. My husband has a hard time digesting this - he was forced to transfer to his new position because his old job is being outsourced to China (his boss actually had the nerve to bring the blueprints for the plant in China to a meeting to show how big the improved facility was going to be!).
Although this really sucks for us, I am thankful that we had the cushion of our retirement contributions to fall back on so that things even out. We come out $150 ahead (after taxes) in each paycheck after taking the health care increases into account. Not as much as we had hoped for, but we plan on snowflaking this into a student loan, and then into retirement.
Have you been screwed by your job lately? We really weren’t expecting this, but it hardens our resolve to get out of debt so that we’re not slave to the company (aka the man) for the rest of our lives.
|
|
|
|
More interesting posts:
Comments
One Response to “Decreasing 401k contributions to offset health plan increase”
Leave a Reply
-
Project Wonderful
-
Twitter
My job screws all of us every year when we get raises based on a percentage less than inflation. So we are pretty much losing money.
Lindsay’s last blog post..The truth about dangerous dog statistics