401k and Child Support

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401k and Child Support

Unread postby rjc25 » Wed Apr 12, 2017 12:51 am

State: New Jersey
If i increase my 401k contribution, does child support increase or decrease or it has no impact at all?
Is there any clear law in New Jersey for this, which can help me make a clear decision on whether i should decide on increasing my 401k deductions per paycheck or leave as they are?

Thanks
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Re: 401k and Child Support

Unread postby Fatheroffour » Wed Apr 12, 2017 5:52 am

You have to run the numbers through the actual state calculations. Without digging too deep, its probably this sheet here.

http://www.judiciary.state.nj.us/rules/appndx_ix_d.pdf
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Re: 401k and Child Support

Unread postby dofb » Wed Apr 12, 2017 11:49 am

Is your 401k mandatory or optional?
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Re: 401k and Child Support

Unread postby Ireadthelist » Thu Apr 13, 2017 8:34 pm

Most states will look at your income without the 401k contribution factored in, provided it is an optional contribution. Otherwise you could max out your 401k , thereby reducing your income and hence child support. If you have a mandatory plan it`s not that way....
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Re: 401k and Child Support

Unread postby Fatheroffour » Thu Apr 13, 2017 10:36 pm

We've seen calculations where increasing 401k contributions also increased CS.

You must run your own numbers for an accurate answer.
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Re: 401k and Child Support

Unread postby RockyCali » Mon Apr 17, 2017 7:52 pm

California has a field for "mandatory retirement contributions," but the other state I'm familiar with (OR) does not. Both these states have "mandatory union dues" fields, too.

Point being just emphasizing what's already been stated: it really varies from state to state how this is calculated.

Are you investing in your retirement for the benefit of your future? Or to get a CS credit?
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Re: 401k and Child Support

Unread postby rjc25 » Wed Apr 19, 2017 9:14 pm

In New Jersey also we have field for Mandatory Retirment Contributions
My 401k is not mandatory
I simply posted is there a clear rule in New Jersey which states how 401k affects child support one way or other?
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Re: 401k and Child Support

Unread postby Fatheroffour » Thu Apr 20, 2017 4:11 am

Yes
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Re: 401k and Child Support

Unread postby Cropduster » Sat Apr 22, 2017 11:21 pm

http://www.njlawblog.com/2007/07/articl ... d-support/

Google scholar for Case Law--It exists
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