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Please splain this 16% fund contribution. I was under the assumption it was a 401(K) contribution. Is that incorrect? Where does the money go? Is it more like a pension?
The company deposits 16% of your gross pay into a fund that you own. It requires no contribution from you. If you make 10,000 bucks in December, they put 1600 dollars into your B/C fund. Originally Posted by Roper92
Golfer Pilot,Please splain this 16% fund contribution. I was under the assumption it was a 401(K) contribution. Is that incorrect? Where does the money go? Is it more like a pension?
The B/C fund has limits on annual contribution amount in conjunction with the 401k contributions. I think the limit is around 50K now. So lets say you make 200k. The company would put 16% or 32k into you retirement account. To max out your annual contribution limit, you could put another 18k or 9% into your 401k.
I'm not positive on all the rules. I've never been close to maxing anything out and my retirement funds got eradicated this last furlough.