Sentences with phrase «fica savings»

In your case, when the total is about 300K - you indeed will not get any FICA savings with such a division other than some of the medicare.

@HartCO - you are correct that if your employer offers a work sponsored HSA plan, then you are better off making your contributions through your employer so you can get the FICA savings too.

Not exact matches

It is worth noting that while people under age 65 in the U.S. live in a heavily market - dominated economy where poor employment outcomes mean poverty and a lack of access to health care, almost everyone over age 65 has most of their healthcare paid for by Medicare, (a FICA tax financed, single payer system that pays providers more or less the same rates as private insurance companies and has few cost controls), more than half of their nursing home costs paid by Medicaid, (which is stingy in how much it pays providers and moderately means tested), and receives enough of a guaranteed income from the combination of Social Security and SSI payments to keep the poverty rate for people age 65 +, (even if they have no retirement savings of their own), above the poverty line, regardless of the state of the local economy.

This is after all the usual deductions — federal taxes, state and local taxes, FICA taxes, pension contributions, TSP (Thrift Savings Plan) contributions, health insurance, life insurance, CFC (charity) contributions, and HSA (Health Savings Account) contributions.

I thought I would be able to reap significant tax savings by avoiding FICA tax on the $ 200k, but as I calculate things, in the end my overall personal tax liability is the same!

You'll have paid social security and medicare taxes on the full $ 50,000 — because you still pay the FICA on your retirement savings, just like if you worked for someone else.

-- Voluntary retirement savings — FICA taxes (~ 8 % of each paycheck)-- Work parking fee — Commuting expenses, such as gas in such quantity — Professional clothing

In other words, your FICA taxes are not being set aside and then saved in a savings account just for you to withdraw from when you become of age.