Originally Posted by
BMEP100
Though not “exactly” as mako described, it is actually a pretty good plan, if the pilot can cash flow it. The average guy can’t.
2 questions; how does the a”post tax” contribution affect the IRS limit for spillage.
When was the max allowable 401(k) contribution percentage raised from 19%..
1) Once you reach 415(c) limits (for 2018 $55,000 if under 50, $61,000 if over 50) your 16% will spill over. That $55,000 is a mix of your and company contributions. Post tax contributions will allow you to reach that $55,000 limit quicker allowing more spill over of the company 16%.
2) I didn't realize there used to be a max percentage you could contribute. I set 30% until I max my 401(k). Andy's example he sets it at 100%.