Originally Posted by
oldmako
Correct me if I'm wrong, but I thought only the company contribution could overflow into the RHA. Once a pilot reaches his individual max he can continue to push funds POST tax into the combined bucket. Once that bucket is full, only company money can flow into the RHA.
Said another way, a pilot maxing out early and then putting post-tax dollars into the combined bucket forces company money to flow into the RHA sooner in the year. Sorry if this ****es any RJ drivers off.
You are correct...if you want to maximize the amount of company spillage into the RHA, you must front load your contribution early in the process. If over age 50, you need to get your full $25k in before the combined contribution hits the $64k limit for the year. If the combined contribution hits $64K, your money will stop being deposited. The company contribution then spills into the RHA until the company contribution hits the $44.8k limit (16% of 280k).
If I mis-stated any of this, I apologize. Andy is a great resource to talk to about this. I learned much of this from stuff he has posted over the years. Hes a bus cappy on west coast.