Originally Posted by
gollum
there is an IRS income limit of 290,000 off of which to base 401k contributions. Any income over this amount gets nothing.
with just 6% direct contribution the most the company could put into your 401k is 290,000 * 6% = 17,400.
you could make $1M and with a 6% DC the number above would not change.
got it...found the IRS page shortly after posting.
So it’s only 6% and there is a “cap” after all ($17,400 for 2021). All the more reason to have a higher percentage, which would also raise the IRS cap closer to the $58,000.
The only real “win” I see is the removal of the $10K cap, which only really benefits mid-to-senior captains. Just a cost of living increase for all FOs, junior captains, and mid level 767 Captains.
interesting tactic...trying to buy off the senior guys...when the majority of the company is junior due to our expansion.
Here’s the IRS page for the curious:
https://www.irs.gov/retirement-plans...e-annual-limit