Originally Posted by
Piklepausepull
nobody asked me but my heartburn is this....
ALL your excess 401k money (over $37,500 company $$$$) goes into your VEBA so Delta gets a HUGE tax windfall not paying matching FICA taxes ......and you don't get the payraise.....
You die, and there may not be an opportunity to pass those $$$ to your heirs...if they are over 26 y/o, if your wife pre deceases you....It's absorbed by the borg...
A HUGE pot o' money controlled by someone OTHER than you looks pretty cool to a company or govt. in dire straights, and JUST WHO determines if your medical expenses are covered etc......?
There is not enough information out there yet.....
Oh, and what about the TriCare guys/gals? They probably don't want to contribute.....
We need to see the details BEFORE we make the decision IMHO.
But I did ask
Your first point is the biggest one. The video seemed to indicate there was a possibility of it being up to an individual as to how much, if any, of the 401c excess would be allocated to the VEBA. Of course that won't be known until the IRS issues a ruling.
So using current limits - I'm looking at 2:45 in the video - of $265k x 16% (latest company DPSP table position), we come out with $42,400 before the excess would become a consideration. Sooner if you mis-manage your individual contributions.
Can't really answer the rest of it, until/if the IRS rules. I'd be a lot happier if it was totally pilot option of where any excess goes, so we could manage it to keep the balance under control or take the distribution as cash. All that said under the auspice of "it's a good problem to have"