Originally Posted by
Roberto
Why do you have that opinion? Tens of millions of people have IRA's and 401(k)'s, with more being added every day. Many, if not most, of these people will be working well beyond 60. The only thing I can think of that age has to do with these plans is that withdrawals can be made without penalty beginning at age 59 1/2, and mandatory distributions must be made beginning at age 70 1/2.
There is a BIG difference between an 401's, IRAs and a B PLan.
IRA and 401K contibutions are optional and percentages are selected by you and come from your paycheck. The MAX amount per year is 15,000 for a 401.
B-Funds are negotiated. B-Funds match a negotiated percentage of your monthly gorss income and the company deposits these additional monies in a separate account. B Fund monies are in addition to your W-2. Money is not taxed (currently). B-fund limits are capped on a MAX of $220,000 a year. Whatever percentage is negotiated, If a Pilot makes 250,00 per year, the Max the IRS allows is a percentage of $220.
10 % B Fund $22,000/yr
7 % B Fund $17,500/yr
5 % B Fund $11,000/yr
These funds are in addition to your company sponsored 401k.
B-Fund does not count for Pensionable earnings. They are put into a separate fund. They are covered under a different IRS paragraph. You can see the potential pitfall if the contibutions become taxed before they are depositied.