ABSTRACT This case study explores retirement and health plan decisions faced by many students who are newly hired as full-time employees. Students are drawn into the storyline of two former college classmates and friends as one accepts a full-time position after graduation and the other seeks a master's degree in accounting. The accounting student takes on the role of a consultant to research retirement and health plan options, calculate the impact on take-home pay, and estimate taxable income and related taxes. Learning objectives for the case include understanding how the tax consequences differ between retirement plans, explaining the attributes of a health savings account (HSA) and related health plans, evaluating the ramifications of tax planning alternatives for retirement and health plans, and communicating tax research and recommendations through written documentation. JEL Classifications: M4; M59; G5; G53.
Albritton et al. (Thu,) studied this question.