Originally Posted by
kronan
A 20% B fund would result in a 55k input to your B fund, means 0 dollars available to contribute to your 401k Traditional or Roth, and no Aft Tax dollars available for the eventual Big Roth IRA roll over.
And also means once your Income hits 275k, no additional money comes your way.
For someone who makes $275k or more, a 20% company contribution to the B fund would mean $33k less that they would have to contribute to their 401k in order to reach the $55k limit (compared to the 8% they get now). Even for anyone who makes less, it would mean less of their own contribution to their 401k in order to reach the limit. That increase their disposable income. They can use those after tax dollars for investing in their own. Isn’t that a good thing?