Re: Changes in Receiving Pre-Tax $$ on Deferred Paycheck
Sorry, this is still fuzzy to me. If you don't defer any money (i.e. you're on the 10-month plan), you don't pay any fees the whole year, correct? Conversely, if you do defer the money (i.e. you're on the 10+2 plan), you pay fees over 10 months for the convenience of getting paychecks in summer. Is that correct?
The extra interest you will earn on getting paid immediately (i.e. 10-month plan) will be fairly small -- especially on a teacher's salary. I am fairly certain that a $200-$300 annual deferral fee will wipe out that interest and then some.
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