Changes in pay checks???

[jlynn275]

I have a strange question for you experts (or at least I think it's strange)...

My paychecks have been the exact same, to the penny, for the past almost 2 years. I have not gotten paid OT in 10 years. I have never received a monetary bonus.
This year, just after filing and just before my 341 (Jan 20) I have a couple of unique changes happening to my paycheck.
1. I received an extra $50 in my last check for doing a health screening at work.
2. Our health insurance options changed and I took the highest of the high deductible plans to lower my premium, so my check will reflect this and be about $100 a month higher take home. (but I receive less on my HSA and have higher out of pocket max)
3. My company is now going to start matching 401K investments again, so plan to contribute a little more than the 1% I am currently to take advantage.
4. We just found out we need to attend some training in the 2nd week in January where we will receive OT pay. I can't believe it, OVERTIME! And of course it's RIGHT before my 341. arg!

This is completely unique and doesn't change my pay rate, but will this be a red flag at my meeting?

[DebtHater]

None of this should be an issue. What is important is the numbers prior to filing. Filing is a snap shot of your finances going backward, not what "might" happen or is going to happen.

Not knowing your total situation it would be difficult to know for sure but an extra $50 one week shouldn't raise any red flags. The changes in your health insurance options only changes your take home, not your gross, not likely an issue. 401K match, no issue. Possible OT in January? Unless it's going to increase your income to millionaire status, no issue. Ironically enough, there is something else you didn't mention that is going to increase your net income. In 2011 social insecurity taxes are being lowered by 2% which will increase your take home.

One recommendation not directly related to the bankruptcy: Increasing your 401K contributions enough to get the full match offered. One common formula companies use is they will match half of your contributions up to 3%. In this circumstance, you will need to contribute 6% to get the maximum company match.

[jlynn275]

Thank you so much!! My OT will be like $100, but it just so happens it's going to be the last paycheck before my meeting! Maybe I will highlight the OT and indicate it was a one time training thing.

My company is matching $.50 on each $1 up to the first 6%. I think I will just start with 6%, then see how i am financially and hopefully increase it. But we gotta get my hubby on a retirement plan (his company doesn't have one), so that might change things.

[AngelinaCatHub]

It is prudent to take the max amount of income you can add to your 401K. Time flies and you don't wish to rely on SS. After you get your new start, start an IRA for your hubby. As far as worry about your income, we were never asked to show our income stubs. We just showed our tax forms for the previous year and our bank statement. Say NOTHING unless asked at your 341. Smile and look like you are calm and have it together. A hundred dollar one time will not be questioned at all. You will do just fine. Don't volunteer information to any legal source. The answers in any deposition are, "yes, no, I don't recall". A direct question from your Trustee is only a bit different. Answer him without adjectives and ONLY what he asked. He will ask further if a simple answer does not suffice. Trustees are not all bad people. They just have a job to do. 'Hub

[jlynn275]

Great advice, thank you so much!
The thing with the stubs, my attorney told us to have them and most current bank statement for the 341. I have a whole file of things to have on hand "just in case", but don't plan on presenting anything unless asked.

[DebtHater]

My company is matching $.50 on each $1 up to the first 6%. I think I will just start with 6%, then see how i am financially and hopefully increase it. But we gotta get my hubby on a retirement plan (his company doesn't have one), so that might change things.

Before you contribute anything above the first 6% (enough to get the full match) I would max out a ROTH IRA as long as your eligible. To contribute to a ROTH you have to have a gross income of less than $106,000 ($167,000 for joint). The advantages to the ROTH is that all interest grows tax free as your principle contributions are taxed. A Traditional IRA or 401K your contributions are not taxed but everything is taxed (principle and interest) when you make withdrawals.

The maximum annual contribution to a ROTH is $5000 if you're under 50 years of age and $6000 if you're 50 or older.

Of course don't do anything based on what you read in a forum. Consulting with a financial planner is recommended with any investments you don't know or understand.

[jlynn275]

Of course don't do anything based on what you read in a forum. Consulting with a financial planner is recommended with any investments you don't know or understand.

And I don't understand ANY of it. LOL
I have a friend who is a financial advisor, he tried to help us stay on a budget and pay down the cc's for a while but when outgoing far exceeds incoming it's pretty impossible. Once all this is behind us (fingers crossed) and we see where we are I will be consulting with him again...with a CLEAN slate (fingers crossed) =D

[DebtHater]

And I don't understand ANY of it.

All I'm trying to say is don't take investment information you find on the internet as your only option. What works with one person may not work with someone else.