2011 Paycheck

[hodap2001]

Well, I just saw my first pay-stub for 2011 (Money isn't deposited until next week) and I received an extra $40.00 thanks to the cut in Social Security withholding from 6.2% to 4.2% - I'm think about taking this 2% increase and allocating it to my 401K plan. Any thoughts on this?? I really don't need the extra $40.00 dollars. I'm already contributing 5% which is matched by my employer - dollar for dollar.

[MN-Investor]

Do you have a Roth IRA?

[hodap2001]

No, I don't...I was thinking about opening one up though.

[Deleted]

I just got mine too, with a very healthy raise. New budget time

[DVM gone riding]

I would open the Roth IRA and put the 40 into that-it would give you a lot more flexibility then more in the 401k and it can double as an extreme emergency fund-

[wvugurl26]

I'd like to put any extra into an IRA for diversity. However, as my extra yesterday was $16 and 2011 insurance rates will be in effect for next check I might clear another $1 or $2. I already have 5% going to our version of 401k. I get another 4% from my employer. I also have money going into our penion. I know sending it to the 401k is the way to keep it from getting eaten up by more federal taxes but at this point I would like to diversify.

[8 Bit WWBG]

Not sure what will happen to mine. Wedding planning expenses, probably. Maybe I will up my TSP contribution.

[Plain Old Petunia]

WWBG: Did you and girlfriend decide to get hitched? Congratulations!

I will not see my paycheck until 1/15/10. I have recently signed up with Mint after deciding that I was frittering too much money away and need to track it better. Some of my budget categories are a bit stingy I am afraid. I will use my "windfall" to make a couple of categories less stingy.

[NastyWoman]

I already added the 2% to my 401k. I have a Roth, but it will be maxed out anyway so this seemed the best way to go

[jennml]

No wonder my check was so nice and hefty this past Thurs. I had heard rumblings about the SS % decrease but for some reason it didn't register until just now.

I'm not counting on getting any SS anyway in my old age so WOOHOO for the decrease. Can't wait to see my next check. This one was 1/2 and 1/2 since I only got one weeks worth with my annual raise. I got a 4% raise and now the SS decrease. 2011 is looking good kiddies

[❤ mollymouser ❤]

I checked my wonderful DH's check online ... our state tax withholdings/rates have gone up to the tune of $30 per pay period.... which offsets the change in SS withholdings. :/

[Deleted]

Jan 8, 2011 20:30:52 GMT -5 ❤ mollymouser ❤ said:

I checked my wonderful DH's check online ... our state tax withholdings/rates have gone up to the tune of $30 per pay period.... which offsets the change in SS withholdings. :/

but have the state tax rates gone up or just the withholdings?

[wvugurl26]

Between an increase in my federal withholdings and new insurance rates next check I don't expect to see any increase.

[The J]

Mine went up like $80, but I can't really compare -- my gross went up with my new step increase, but my flex contributions restarted (I had no medical flex last year, and my transportation flex contribution stopped in September), so I'm not sure what the impact is, and I don't really care enough to sit and figure it out.

[Deleted]

Jan 8, 2011 21:32:25 GMT -5 wvugurl26 said:

Between an increase in my federal withholdings and new insurance rates next check I don't expect to see any increase.

Federal tax rates went down slightly, but there is no making work pay tax credit. . Between the two, your 2011 federal income taxes shouldn't really change, all other things being equal.

[❤ mollymouser ❤]

Jan 8, 2011 20:51:12 GMT -5 ArchietheDragon said:

Jan 8, 2011 20:30:52 GMT -5 ❤ mollymouser ❤ said:

I checked my wonderful DH's check online ... our state tax withholdings/rates have gone up to the tune of $30 per pay period.... which offsets the change in SS withholdings. :/

but have the state tax rates gone up or just the withholdings?

I'm not sure ... I know that they approved a state tax rate increase, but I don't know if it went into effect before now, or if it's starting now after being voted upon last year. With the state of California, it could be either. Or both.

[wvugurl26]

Between the two, your 2011 federal income taxes shouldn't really change, all other things being equal.

I knew that was expiring. All other things between this check and my last one for 2010 were equal. $30 less in SS tax, $14 more in federal withholdings, $16 more in net pay. Next check new health/dental insurance rates will eat the $16. So the only way I'm seeing to benefit from this decrease is to up my TSP contribution but I'd rather put it in an IRA. Guess it would have all been eaten by federal if they hadn't decreased the rates.

[dragonfly7]

Since you're already being fully matched by your employer on the 401k, I would go with the Roth IRA.

DH's employer mandates a 6.4 percent retirement contribution instead of contributing to Social Security, so we won't see any changes in his paychecks.

[Deleted]

Mine actually went down

Between our insurance rate going up (swith from Blue Cross Blue Shield to MVP), work pay tax credit expiring... really did not change anything for us.


But we will take it

[justwhoever]

This isn't going to really change our pay. Hard for me to imagine 2% making a difference in pay.

[The Walk of the Penguin Mich]

I won't see my first paycheck of the year until 1/31.

[naggie72]

Will see ours on the 14th.

[The J]

Oh yeah, this just made me think of the fact that my paycheck reflecting the last week of 2010 (at my old pay) and the first week of 2011 (at my higher pay), so I'm guessing the difference will be bigger on my next check.

[Deleted]

Jan 9, 2011 13:17:19 GMT -5 The J said:

Oh yeah, this just made me think of the fact that my paycheck reflecting the last week of 2010 (at my old pay) and the first week of 2011 (at my higher pay), so I'm guessing the difference will be bigger on my next check.

Taxes and wages are calculated when they are paid, not when they are earned. So your entire paycheck was the the 2011 rates.

[Deleted]

Jan 9, 2011 10:03:51 GMT -5 @justwhoever said:

This isn't going to really change our pay. Hard for me to imagine 2% making a difference in pay.

Then you should increase your 401k contributions by 2%, if it won't make a difference.

[The J]

Jan 9, 2011 13:18:29 GMT -5 ArchietheDragon said:

Jan 9, 2011 13:17:19 GMT -5 The J said:

Oh yeah, this just made me think of the fact that my paycheck reflecting the last week of 2010 (at my old pay) and the first week of 2011 (at my higher pay), so I'm guessing the difference will be bigger on my next check.

Taxes and wages are calculated when they are paid, not when they are earned. So your entire paycheck was the the 2011 rates.

Nope. Half was calculated at the lower rate, half at the higher rate (the wages -- I agree on the taxes)

[Deleted]

Jan 9, 2011 13:32:16 GMT -5 The J said:

Jan 9, 2011 13:18:29 GMT -5 ArchietheDragon said:

Taxes and wages are calculated when they are paid, not when they are earned. So your entire paycheck was the the 2011 rates.

Nope. Half was calculated at the lower rate, half at the higher rate (the wages -- I agree on the taxes)

yeah, that is true. Your companies decides when and how to pay your wages..