0% loan from the government (timing the CSP bonus switch)

[didja]

This year will be last of 4 MSP contract payments (signed in 2013) and I'm not planning to switch over on 1 July like so many people are planning to. My circumstances are a little unique in that my wife will likely get a big raise next year (2018) so I'm planning to not renegotiate my bonuses into the CSP system anytime soon (I'll send old school ISP contracts again in the fall like usual). I'll basically get a 4-6 month 0% interest free loan and then I'll pay less taxes overall by decreasing my total compensation in 2018 when my and my wife's marginal tax rate increases. Even if someone didn't have a similar scenario like my wife and I have, it seems like most physicians (not all) would have the discipline to be able to payback the bonuses-- our local pay people said typically it would be over 6-12 months-- especially with over a year to prepare.

Anyone joining me by exercising our rights to keep our prior signed contracts with the Air Force until January 2018?

edited: typo

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[backrow]

This year will be last of 4 MSP contract payments (signed in 2013) and I'm not planning to switch over on 1 July like so many people are planning to. My circumstances are a little unique in that my wife will likely get a big raise next year (2018) so I'm planning to not renegotiate my bonuses into the CSP system anytime soon (I'll send old school ISP contracts again in the fall like usual). I'll basically get a 4-6 month 0% interest free loan and then I'll pay less taxes overall by decreasing my total compensation in 2018 when my and my wife's marginal tax rate increases. Even if someone didn't have a similar scenario like my wife and I have, it seems like most physicians (not all) would have the discipline to be able to payback the bonuses-- our local pay people said typically it would be over 6-12 months-- especially with over a year to prepare.

Anyone joining me by exercising our rights to keep our prior signed contracts with the Air Force until January 2018?

edited: typo

As long as you're okay not getting your 15k ASP next July you can absolutely do this. For someone in your situation it actually doesn't make much sense to not convert next July. With your scenario they aren't going to backdate your conversion to October, you're just going to start the new "contract" on 1Jan. They won't pay you your updated specialty bonus (I say updated bc it would be without MSP) in July because you can't sign the one year contract since those contracts can't extend beyond January.

I'd give it a shot if you really think the tax advantage will be significant, but I wouldn't count on it working.


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