Originally Posted by
Flying Boxes
3). Regular sick account (RSA) of 72 hours a year go into a Disability Sick Account (DSA) if not used. If DSA goes above 686 hours at the end of the year (about year 10 of not being sick...ever ), FedEx will deposit extra sick hours into retirement account at pilots hourly rate. 72 hours * $XXX.XX/hour = $XX,XXX. IF DSA payout exceeds the IRS annual limit ($56,000 under age 50 or $62,000 if 50 or older), it paid out as taxable pay.
At the risk of asking pilots for financial advice, what’s the best way to maximize FedEx’s retirement? Obviously hit high-5, but what about maximizing 401k without leaving company money on the table? I heard if you contribute too much to the 401k, the company stops matching early...
I may be missing something. Assuming a pilot contributes the max allowed to the 401K, a $500 match and an 8% contribution to the limit of $280,000-- how are we likely to reach the IRS annual limit of $56,000?
Is extra sick pay contribution the only means by which this might occur? If this is in fact the issue, how would receiving a sick pay contribution at end of year elicit lost contribution?