Which Amount is Used by UW

[bigman023]

Trying to figure out which amount on W2 will be used by UW

My gross is the highest figure on the W2, but after 401k and medical deduction my that amount is lowered and is what is the number entered in box 1 on the W2.

Example, my true gross is 70K, after 401k and medical my net is 50K. 50K is the amount in line 1 on W2. 

What would an underwriter  consider my annual income to be?

thanks!

[frugalQ]

If 70 is regular wages, this is what they will use. If 70k is comprised of regular wages and incentives, they will use the regular wage portion and average the incentives portion.

They will not deduct the 401k et all.

[bigman023]

Yes, the $70k is all regular wages.

Taxable income is 50k due to  401k contributions and med insurace.

[frugalQ]

Actually, they will use your current salary (if you are normal w2 employee). That may be different than what's on w2. This is why they use your last two months pay stubs.

For example, mid year is when I get my annual raise. So, my w2 does not reflect current annual salary. They use my current salary based on my last two months pay stubs.

[Anonymous]

What do they consider on the paystubs...the gross or net pay? If someone is maxing out the 401k and/or married, yet having taxes taken at higher single rates, does that matter or they really just look at the gross?

[que_lynds]

For a W-2 employee your gross income is used

[Revelate]

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@que_lynds wrote:

For a W-2 employee your gross income is used

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+1.

Retirement contributions can and likely should be changed if money gets tight so that'd discretionary rather than mandatory if I understand their rationale correctly.