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Old 11-25-2019 | 06:42 PM
  #10  
grahamlax
Gets Weekends Off
 
Joined: Jul 2008
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Didn't know it existed, thanks everyone- for anyone else looking to have it simplified.... read the bold part

The Internal Revenue Code (IRC) limits the maximum dollar amounts that can be contributed to the PRAP each year. For 2019, there is a combined limit of $19,000 for employee pretax and Roth 401(k) contributions. Pilots age 50 or older in 2019 may contribute an additional $6,000 annually in 401(k) “catch up” contributions.
There is also a combined limit of $56,000 (or 100% of your compensation, if lower than $56,000) for all employee and company contributions in total. If you will be age 50 or older in 2019, your contribution limit is increased by $6,000 due to the “catch up” contribution provision. The $56,000 limit applies to your total pretax contributions, Roth 401(k) contributions, post-tax contributions, and any company contributions made on your behalf to the PRAP. If you reach the 415(c) limit of $56,000, any future company contributions (16% or vacation forfeiture) that would have gone to the PRAP will instead be contributed to your Retiree Health Account (RHA).
IRC 415(c) Limit in 2019 Lesser of $56,000 or 100% of compensation.
Those 50 or older can contribute $6,000 in 401(k) catch up contributions, and catch up contributions do not count
toward the 415(c) limit.
The IRS also limits the amount of annual pay that may be taken into account for the PRAP. The limit for 2019 is $280,000. Pilots who earn more than $280,000 will not have the 16% on the amount greater than $280,000 go into their PRAP accounts; instead, an equal amount will go into their RHA. For instance, a pilot earns $290,000 in 2019, the 16% attributable to the amount between $280,000 and $290,000 cannot go into his PRAP; instead, the amount ($10,000 x 16% or $1,600) will be deposited into his RHA.
The sum of your Roth 401(k) and pretax contributions cannot exceed $19,000 for 2019.
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