Originally Posted by
APC225
Anyone wanting to max out RHA, keep an eye out for R/I email to
[email protected] regarding putting vacation directly into RHA, bypassing the 401/415 issues. You can put in up to 21 days, election must be by midnight 31 Dec. Reply "yes" to their email and number of days elected.
This has been addressed before, but I'll cover it since you mentioned it.
I would recommend against deferring vacation into the RHA. Do the spill over another way. If you use vacation, that valuation
DOES NOT include B and C contributions. Thus using vacation to fund the RHA is a 16% pay hit. Only do this if you really have no other way to fund the RHA.
As Mako suggested take profit sharing and put it into the 401k, contribute to the 401k, max it out, that will get you to the 415 limit early in the year, then any B & C contributions will then spill into the RHA.
So, you can put money into the RHA via un-elected vacation, but it'll cost you money to do it.