Originally Posted by
grahamlax
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
your math is correct. Can someone else confirm that this is the correct way it is calculated?
Originally Posted by
Tini
Thank your for all of this discussion-it has answered a lot of my questions. My question is this-I am a narrow body fo so won’t get near those big numbers where things start spilling over. I have enough cash to cover living expenses so I’d like to maximize b fund, rha etc. Thanks for any advice.
sounds like your question is similar to above, if you max out your 401k, are you getting the maximum company money (16%) you are contractually entitled to? I think the answer is- if you make less than $231,250 the full 16% goes to your B fund. So even if you had an RHA there would be no company spillage because all 16% would already be in the B fund, so don't worry about it until you make $231,250. Can someone else confirm this?
Does anyone who makes less than $231,250,(5 years is?) have an RHA or contribute to it? would you suggest doing that? why?