Conference 7.286::digital

    I read and re-read all material and cannot find an answer to these
    excellent questions.  I have tried to find on the forms how you
    direct this opt-out payment into Save and cannot find a field for
    that option.  Worse yet I can't figure out who to call to find the
    answers.
    
    How can we (Digital) sent two communications - one to my home and
    one at work - both mentioning this option without explaining HOW
    TO DO IT!
    
    Worse yet, did I have this option last year and no one told me at all?
    
     

    THE OPT_OUT IS FIGURED IN YOUR GROSS AND IS PART OF THE 8%

    re: last 2 notes
    
    You shuld be able to get these questions answered by calling the
    Personnel Service Network on DTN:  592-7500.  
    
    Hope this helps.          

    To all:
    
    	Barbara at PSN is investigating this issue and has promised to send
    me E-mail by Friday. I will post her response here.
    
    George :-)
    

    
	It appears that when you OPT-OUT, that the $25.41 is added to the 
    base salary used to calculate your contribution to SAVE. So, if you are 
    contributing the maximum of 8%, then you are contributing 8% of Opt-Out 
    into SAVE.

	I re-read the Health Care stuff, and the paperwork does seem to imply
    that the Opt-Out funds could be sheltered completely, IN ADDITION TO your
    normal SAVE contribution. Apparently that's not the case. I also had my 
    site personnel rep contact the SAVE folks, and it's the same story 
    there as well. 

	So it looks like the government wins again...! :-(

    
Regards,
George

Re: .5

>	So it looks like the government wins again...! :-(

	
How do you figure this?  The government doesn't get any of the money - 8%
(or whatever) goes into YOUR 401K, which is tax-exempt.  I'd be glad for
any opportunity to increase contributions to my 401K, why aren't you?

					Steve

    The government wins because they get more of my income in taxes - which
    they will inevitably waste. And, I'll bet that they will figure out a way 
    to get rid of 401k's just like they did IRA's. 
    
    And, YES, I am glad to be able to add to my 401K contributions. That
    extra $2.03 will really add up fast.
    
    George
    

               -< Glass half empty Vs half full >-
    
    Re:.7
    
    I had similar questions about your question as .6 did.
    
    1. How does the government win? YOU chose to opt out and hence retained
       the same income you would have otherwise had. As a matter of fact, if
       you chose not to opt out, the government provides you the benefit of
       not being taxed (or lowering your tax bracket). You cant have the cake
       and eat it too!
    
    2. $2.03 added is that much added. The choice would have been not to add
       even as much. So in effect, you are $2.03 richer/week...that is about
       $105 per year. Can you not use that (however little) money esp since
       this is being tax sheltered?
    
    3. Even if the government got rid of the IRA's, whatever you saved till
       the time they were available, is your retirement (tax deferred) money.
       Look at the 401K's the same way.
    
    I am happy with these choices...
    Atul

              -< Wrong on item 1>-
    
    Re:.8
    
    Please ignore my point on item 1....my mistake!
    
    Atul

re: .7

Is the elimination of IRAs in the new tax package?  The belief
that IRAs were eliminated several years ago is a myth.  

What did change a few years ago is that if your income exceeds a certain 
amount, and you are covered by an employer-paid pension plan, then you
may not defer the tax on your contribution.  Income earned by the IRA is 
still tax deferred.  This isn't quite as advantageous, and it does create 
more bookkeeping work, but it is still an option worth considering.

For 1992, single taxpayers with incomes less than $25000, and married 
taxpayers with incomes less than $40000 could defer taxes on their
entire IRA contribution.  

   Gary

    Rat-hole... I'm outta here..!