Originally Posted by
spaaks
what is the income level where one needs the RHA to capture the company money if they do as y'all have said and max out 401k early, get max company B fund contribution? i.e. at what income level/years of service are you leaving company money on the table if you max out everything?
Originally Posted by
APC225
Triple tax advantage. Pretax in, tax free growth (7.8% YTD), untaxed out. R&I said about 200 pilots put 100% of paycheck into PRAP to start the year and around 3/16 the 16% spills into RHA for remainder of the year. Side benefit, after pretax 401k limit is reached, do the rest post tax and convert it to Roth for no taxable 70 1/2 RMD requirement.
Spaaks, I think what you're asking is, until you make $231,250 don't worry about it. All of the company's 16% goes in to the 401k and you will not hit the limit.
-$56,000 limit ($19k from pilot + $37k from company)
-$231,250 x .16 = $37,000
The income level required to obtain $37k from the company at 16% is $231,250.
someone please check my math