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Jon Knauft
12-29-2009, 10:38 PM
I participate in my companies Section 125 plan. We're only allowed to make changes to the amount of our deduction at the beginning of the plan year or after a "life event". I had a "life event" last Sunday (my son was born!) but my employer is saying it doesn't matter because I don't have any more checks from which I can deduct this year. I understand what they're saying but the plan runs from Jan. 1 through Dec. 31 (not December 22nd which was my last check). I've searched the web and haven't found anything similar to this that I could show my employer. Any ideas?

Normally, I would let it go but due to the cost of the birth I'm estimating this will be a $1,500 difference to my pocketbook after all is said and done if I do nothing.

-Jon

Jim Koepke
12-30-2009, 3:49 AM
I participate in my companies Section 125 plan.

Maybe an explanation of a Section 125 plan would help.

You will be able to make the change at the beginning of the year?

If there is no more payouts for this year, what is the effect it could have if there is nothing for it to effect?

Will having a dependent deduction offset the $1500 out of pocket?

jim

Randy Cohen
12-30-2009, 6:06 AM
You are talking about getting the medical bill taken out of your pay pretax? Couldn't you defer paying the bill until next year and then pay it in periodic payments to match the amount taken out of your paycheck?

Mitchell Andrus
12-30-2009, 8:46 AM
Don't forget, the deduction counts for ALL of 2009. File early for a faster tax refund.
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