Originally Posted by
PSU Flyer
I was thinking this too, but doesn’t the spillover now go to VEBA instead of cash?
The 'spill over' is the value of the 16% that is paid on earning above the 'compensation limit'. $290K in 2021 and $305K in 2022. Before this 'compensation' limit is reached the 16% employer contribution is deposited into your 401k. Once the plan limit is reached ($58K in 2021) the 16% is deposited into the VEBA until the $290K compensation limit is reached and then the 16% is added to your pay check as 'cash'.