I'm in Washington state. On the child support schedule (worksheet) there is a place for "pension plan payments" which are deducted from the gross income. It looks like the more you have deducted for your pension the less your net income is and therefore the less you'll have to pay in child support. Am I reading this correctly? Thanks!
We are in WA. DH is NCP to one teenager. Pension plan payments are for pensions plans, 401Ks etc. It DOES reduce your income for calculation purposes... so DH actually brings home MORE with a full 10% 401K contribution than he did with a 3% contribution and CS figured on that.
Maximize it - you get to "double dip" and get a slightly lower CS order as well as a tax break on your income... also, you can't see the $$ in the 401K until later in life, but you should be able to save something for retirement.
When the CS Order is lower you have more useable income to spend on your child (or not) as you chose, instead of wondering what the heck the CP is doing with it when you kids come to you in dirty rags and no coat in 0 degree weather or for the 12th time in nothing but flip flops and shorts.
Don't forget, that WA often has a DA involved with modifications of CS orders -- since WA has their hand in the pot. They ONLY consider federal taxes paid as the ones you ended up paying at the end of the year. (e.g., you pay taxes all year, but when you file, you get back all but $360. The $30 a month is the federal taxes owed and deductible from your monthly income -- plus medicare, Social Security etc.)
Send me an email if you want more help.
Wow, I can't believe there is actually something that is to my benefit! This whole process is so discouraging. Thanks for letting me know your experience. Funny you should mention how the kids come with no coat, flip flops and shorts. Maybe it's the standard childrens wear for Washingtonian CP's!
There is a difference between pension plans an employee has no choice but to pay because it is taken from their check and payments an employee makes on his/her own. If an employee has no choice, it is usually deducted from income just like taxes. Optional plans are not considered mandatory and the money is considered when factoring support.
>There is a difference between pension plans an employee has
>no choice but to pay because it is taken from their check and
>payments an employee makes on his/her own. If an employee has
>no choice, it is usually deducted from income just like taxes.
> Optional plans are not considered mandatory and the money is
>considered when factoring support.
The first time child support was figured they did deduct my 401k before figuring the amount. Since then I have not been able to afford it. I'm afraid cp is getting ready to try to up the support since it's just been over two years. If I don't have it in there, then it'll look like I have a bigger net income than last time. My salary has not changed too much over the past two years. I suppose it can't hurt to have it deducted again just in case.