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my health ins deduction from my paycheck is 255.00 per week(company

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pays 1/2 of mine and...
my health ins deduction from my paycheck is 255.00 per week(company pays 1/2 of mine and i pay for family coverage). I'm a 55 year old female. Thinking about future retirement i can't believe how much is not being included in my wages due to the pretax (125 plan ??)
255.00x52 = 13260.00
My question is - Do i have a choice if i want the 13260.00 taxable for ss purposes only. Or would it have to be taxable across the board. Can i even request it taxable.
Submitted: 7 years ago.Category: Tax
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Answered in 44 minutes by:
1/2/2011
Tax Professional: socrateaser, Lawyer replied 7 years ago
socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 39,498
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A primary incentive to an employer's providing health care is the ability to offset some of its payroll tax costs. Similarly, the employee would be taxed on the additional income were it provided post-tax.

Thus, the current laws benefit both employer and employee.

Regardless, it's not optional. The pretax status of health care is controlled by federal law.

Hope this helps and happy new year.

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Customer reply replied 7 years ago
In the big picture the fact that those wages will not be included to determine social security benifits in years to come - do you know how much we're talking about - if it is substantial over the next 10 years and as you said i have no choice through my employer - is there anything i can do on my own?
Tax Professional: socrateaser, Lawyer replied 7 years ago
$13,260 X 12.4% = $1,636.80 lost SS contribution
$13,260 X 28% = $3,718.80 saved federal income tax

If you put half of your saved federal income tax into an IRA or your employer's 401(k) (assuming the employer has one), then you will recover your lost SS contribution.

Hope this helps.
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