Originally Posted by
Thrust Hold
I'd imagine that most FedEx (9% DC) and UPS (12% DC) can also hit the $57K limit (2020) in years 3 or 4. In addition, they also have a Pension (A Plan).
@ 9% it takes a w2 over $400k to reach the current employer contribution limit.
@12% it takes a w2 just over $300k.
Employee contributions and make up after age 50 are up to the individual.
Was talking with fedx bud. Hes a 25+yr guy. We were comparing notes on pwas and retirement. He was shocked i have brokerage account in a 401k.
I was shocked (not really) his A plan is a non cola fixed amount. He was shocked my LTD has no cap on FAE. And my company 401k contribution is doubled if im on LTD. I was shocked his was capped at the A plan max.
There are a lot of factors in weighing career earnings. I know that even with the economic wreckage and terminated pensions of the last decade or so the single component of a pwa brokerage access in our 401k has allowed pilots to realize balances into 7 figures. And i know of at least 1 with an 8 figure number. Thats $10,000,000+.
What makes such numbers even more impactful is realize when the failed DB was in effect.....ERISA limited our self directed savings to 6%.....as the DB caused us to be classified as 'highly compensated employees'. So for YEARS self directed savings growth was greatly supressed.
Imagine that....a b scale new hire making $1800/month.....was 'highly compensated'.
Id rather have the money in my 401k. And the disposable in my hand to invest after tax any day, over trusting some future management to pay me once im gone.
That way there are no questions on my financial how-goes-it for retirement.