Comments on: how can i tell if my health insurance benefits are pre taxed? http://myinsuranceblog.org/united-states/how-can-i-tell-if-my-health-insurance-benefits-are-pre-taxed/ All About Health Insurance Fri, 23 Apr 2010 20:16:17 +0000 hourly 1 By: v b http://myinsuranceblog.org/united-states/how-can-i-tell-if-my-health-insurance-benefits-are-pre-taxed//comment-page-1#comment-684 v b Mon, 13 Oct 2008 10:23:14 +0000 http://myinsuranceblog.org/ps/324#comment-684 OKay, it's nice that you read a publication somewhere (it made for a funny looking question since you quoted from the pub). When you get your W-2, look at box 14, many companies list the amount of health care benefits there. Also Compare the amount in box 2 (your wages for social security purposes) and the amount shown as ytd wages on your last paycheck stub. If your health care was pre-tax, the amount in box 2 will be LESS than the YTD wages on the paycheck. Boston--Pre-tax health care lowers your social security earnings. This *will* ultimately reduce the monthly payment one receives from SSA. It *may* also affect how pension payments are paid out. I happen to be a devout saver--anything I don't pay as taxes now, I save. My savings should be enough to compensate for any loss in benefits. The quick estimator at the SSA web site (plugging in $40,000 and 41,500 as the annual income with pre and post tax dollars) shows about a $30 difference in monthly benefits. At the 15% tax bracket, someone would pay $20/month more in tax now. If FERS uses the $40,000 number for retirement (assuming 20 years government service) , that would be another $25 a month as well. OKay, it’s nice that you read a publication somewhere (it made for a funny looking question since you quoted from the pub).

When you get your W-2, look at box 14, many companies list the amount of health care benefits there. Also Compare the amount in box 2 (your wages for social security purposes) and the amount shown as ytd wages on your last paycheck stub. If your health care was pre-tax, the amount in box 2 will be LESS than the YTD wages on the paycheck.

Boston–Pre-tax health care lowers your social security earnings. This *will* ultimately reduce the monthly payment one receives from SSA. It *may* also affect how pension payments are paid out. I happen to be a devout saver–anything I don’t pay as taxes now, I save. My savings should be enough to compensate for any loss in benefits.

The quick estimator at the SSA web site (plugging in $40,000 and 41,500 as the annual income with pre and post tax dollars) shows about a $30 difference in monthly benefits.
At the 15% tax bracket, someone would pay $20/month more in tax now.

If FERS uses the $40,000 number for retirement (assuming 20 years government service) , that would be another $25 a month as well.

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