This is my first post! I have a little dilemma I have to decide whether I want to continue stop contributing to my city pension with the benefit that I will be able to waive FICA. Let me give some background information...
I am a NYC employee and so I have access to both NYCERS pension and a TDA/403(b). The deal was that if I contributed at least 9% to the TDA, FICA would be waived and no longer deducted from my paycheck. I liked this. I also started contributing to the NYCERS pension but I did not plan on becoming vested. I only plan on working for NYC for < 5 years so I would be able to roll my money out with 5% interest.
The issue is that it appears that contributing to the city pension precludes me from the FICA waiver. That is, If I want to contribute to NYCERS, I have to pay FICA. This is the dilemma.
Currently, FICA snatches 6.2% of my biweekly paycheck because I contribute 4.5% of my biweekly paycheck to NYCERS. If I stop contributing to NYCERS, FICA can be waived again. The downside is that I would lose the 5% interest by no longer contributing to NYCERS. The way I see it, however, is that 5% on top of 4.5% is only an extra 0.225%. That does not seem worth losing 6.2% of every paycheck unnecessarily.
Does my math make sense? Am I making sense? Am I wrong for considering FICA like any other tax that I will never get back?
Please hit me with some feedback. Sorry for the extra long post