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Re: 24 years old: what's my next move?
Old 05-25-2006, 06:19 AM   #41
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Re: 24 years old: what's my next move?

Quote:
Originally Posted by soupcxan
The tax impact of a $75k reimbursement is obviously on my mind...based on reading "Publication 970 - Tax Benefits for Education" it sounds like the payments would not be reported as income on my W-2 because the tuition payment is issued directly to the school under my employer's accountable plan. Even if they did report it on my W-2 under a non-accountable plan, it sounds like I can deduct the expense because it is helping me further develop my skills but not qualify for a new line of work. This deduction would be subject to the 2% of AGI limitation. However, if they did it the 2nd way, I would probably get an 8% hit in my pay due to FICA/SS withholding on the imputed income.

Can anyone confirm? I'm no CPA.
I am a CPA and it's still a gray area. Technically because you are furthering the same skills and not learning another career you can deduct your expenses. I beleive there was a tax court ruling recently where a woman had her deduction thrown out though.

I know my sister and her friends from Kellogg all waited with a little anxiety as the 3 year statues ran out on their 1040's from business school.

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Re: 24 years old: what's my next move?
Old 05-25-2006, 11:05 AM   #42
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Re: 24 years old: what's my next move?

I got my MBA paid mostly by my company.. but it was small dollars over many years... it was not taxable income as it was something that help my employer now and there was no extended contract...

But, my BIL got his EE degree and was taxed. His company let him go to college and work half time with full pay.. also paid for his college, but, he had signed a contract saying he would work two years after he got his degree or he would have to pay it all back to the company... this is what made it taxable income.

Ask you HR people.. .they would know more about what they put on your W-2.. and if they had done so to others in the company
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Re: 24 years old: what's my next move?
Old 05-30-2006, 09:19 PM   #43
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Re: 24 years old: what's my next move?

Hehe...had to pass this latest development along:

The manager who had said that 50% tuition + 1 year extra commitment was a posibility came back to me today and said that his superiors had killed any potential deal because: anyone who wants to get an MBA will probably leave the company. If that's management's attitude, no wonder people leave the company! I should also point out that this business segment has been suffering from low morale problems compared to its peers in the company. Maybe there is a connection??

So this segment sent me a pretty clear message. On the plus side, it makes my decision easier, since the 100% is still on the table from the other segment.
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Re: 24 years old: what's my next move?
Old 06-02-2006, 04:35 PM   #44
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Re: 24 years old: what's my next move?

Quote:
Originally Posted by soupcxan
Hehe...had to pass this latest development along:

The manager who had said that 50% tuition + 1 year extra commitment was a posibility came back to me today and said that his superiors had killed any potential deal because: anyone who wants to get an MBA will probably leave the company. If that's management's attitude, no wonder people leave the company! I should also point out that this business segment has been suffering from low morale problems compared to its peers in the company. Maybe there is a connection??

So this segment sent me a pretty clear message. On the plus side, it makes my decision easier, since the 100% is still on the table from the other segment.
By creating a cloud of distrust emanating from the top, they have basically put the kibosh on employees' desire to stay after they have completed their degree.

Where are you going again? Rice? Will it be at the main campus?
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Re: 24 years old: what's my next move?
Old 06-02-2006, 08:41 PM   #45
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Re: 24 years old: what's my next move?

Well, there's been further developments...this week a new door was opened for me that I had assumed was closed. I'm now trying to get out of Houston and to a different business segment. We'll see if it works out, no guarantees. This puts the MBA plans on hold, but is probably a better move in the long run.

If this new approach doesn't pay off, I may stay in houston and go to Rice part-time at the main campus. Or I may find a temporary assignment until something in the preferred segment opens up.
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Re: 24 years old: what's my next move?
Old 06-04-2006, 11:48 AM   #46
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Re: 24 years old: what's my next move?

If you can get an MBA from UT Austin, go for it.* I would agree that so-called executive programs are often not the best quality, but anything is better than nothing.* Longhorns get an excellent education in that B school.

Considering how to pay for the education, I negotiated my own comp down with my employer, he paid my education expenses ("requiring" me to take the classes), and thereby I avoided the tax implications.* We kept it below the radar, but I recognize this is tough with a larger company.* Research it under current law, but it worked way back when.

Here's what I did.* BS Accounting, large, public university, not top 20, but good reputation.* CPA from Big 4 (then, Big 8).* Went back to get an MBA from the same school, part time at first, full time in the last year ... bootstrapped it.

Here's where faith comes in, religious or practical.* You'll have folks tell you your career will dip, the MBA or CPA is not necessary, lost income, ad infinitum.* Nobody really knows.* Bill Gates had none of this.* So what.

Bottom line ... having an MBA is definitely helpful in the business world.* Top flight school even better.* A CPA or CFA, or CA for that matter, are all helpful, IF you have a financial focus.* The world gets more competitive every year, education is more critical, and you will benefit in ways you cannot imagine, for many, many years.

When I got my MBA, it was a b*tch.* Had no money.* Recruiters and others telling me I was wasting my time.* My career would decline for awhile, and take time to recover.* Lost earnings.* Wrong school.* Yada yada.

BS.* Best thing I ever did, and worth the risks.

None of us can know your best course.* But I will offer it is likely that any MBA is better than none.* An MBA from a top flight school is better still.* Structure your course of study so the CPA exam is at least an option.* And, whenever possible, always hedge in your career ... give yourself multiple options, whenever possible.* Life will throw you many, many curves.

[BTW, incredible savings job for your age. Congrat's.]

Best of luck.
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Re: 24 years old: what's my next move?
Old 06-04-2006, 11:40 PM   #47
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Re: 24 years old: what's my next move?

Quote:
None of us can know your best course. But I will offer it is likely that any MBA is better than none. An MBA from a top flight school is better still.
My carpool buddy received his MBA from U of Michigan, and he said that it has really helped his career.

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Re: 24 years old: what's my next move?
Old 06-07-2006, 09:05 AM   #48
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Re: 24 years old: what's my next move?

Quote:
Originally Posted by Spanky
Quote:
None of us can know your best course. But I will offer it is likely that any MBA is better than none. An MBA from a top flight school is better still.
My carpool buddy received his MBA from U of Michigan, and he said that it has really helped his career.

Man, Michigan grads are like Kudzu. They are everywhere!
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Re: 24 years old: what's my next move?
Old 06-10-2006, 06:29 PM   #49
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Re: 24 years old: what's my next move?

From the NYTimes, "Was Earning That Harvard M.B.A. Worth It?
http://www.nytimes.com/2006/06/11/bu...11harvard.html

Quote:
Originally Posted by Abby Ellin, NYTimes correspondent
In 2003, Professor Mintzberg tracked the performance of 19 students who graduated from the Harvard Business School in 1990 and were at the top of their class academically. Ten of the 19 were "utter failures," he said. "Another four were very questionable, at least," he added. "So five out of 19 did well."
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Re: 24 years old: what's my next move?
Old 06-10-2006, 10:32 PM   #50
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Re: 24 years old: what's my next move?

It has become clear over the years that the degrees are as much an admission ticket as anything else ... a Harvard (or UT Austin) MBA diploma may get you in more doors ... but what ultimately matters is what you do with the opportunity, period.
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Re: 24 years old: what's my next move?
Old 07-03-2006, 10:36 AM   #51
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Re: 24 years old: what's my next move?

An update to the story...I had to push my HR manager but they finally let me out of the industrial business I'm currently in and I got an offer with our financial services business in Dallas. Same employer, different industry, and hopefully a better working environment. I think there are better advancement opportunities there, and this'll also help diversify my resume. As cities go I much prefer Dallas to Houston, and I'll be closer to my girlfriend as well, so it's an all around good deal. The new manager also seemed receptive to supporting a part-time MBA next year.
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