Originally Posted by
CHAIRMAN
So not incorrect, if you die, your wife dies, and you didn't have children or dependents, does the money go to the pilots estate or is donated back to the plan. I personally lower my contributions as to not go over the 415 53k limit. And take the money from my paycheck and invest other wise.
Originally Posted by
jsled
If no DEPENDENT children, and the wife is also deceased, then yes...remaining money (if any) goes back to the Trust. At least that's the way I understand it. I too try not to spill extra money into the RHA. I want some cash in there, just not too much.
I don't like that there is a scenario in which my estate loses those funds. OTOH money in that account is permanently tax sheltered. It is pretax going in and then not taxed when spent. So every dollar deposited is an instant and permanent gain by whatever your tax bracket is now, or might be later. There aren't many investments that have a guaranteed gain of 20% to 30%. In addition, the investment gains within the fund are also exempt (6.19% YTD). Risk is total loss to the estate, so there is that. Someone who earns enough that maxing out the 401k creates spillage into the VEBA may be in a financial position to accept that risk.