Originally Posted by
DLax85
Yes - this is True if the company tries to put your sick bank $$ into your 401K/B fund accounts
However - it’s false if the pilots contributes $12,650 or more in ROTH 401K contributions after maximizing their pre-tax 401K contributions
$61K Max = Pre-Tax 401K + Roth 401K + Company $500 match + Company B Fund Max
$61K Max = $20,500 + Roth + $500 + $27,450
Thus Roth max = $12,650
If you make $305K or greater, and put in more than $12,650 in additional Roth contributions, you’ll be forgoing “free B Fund money” from the company
These numbers change each year, but ambitious savers need to keep paying attention
(Note: You’ll always get your Sick Bank payout, it just may be taxable)
Ok, I don't have a full disability account, so I don't know the finer points of what the company does with this.
Does the company pay the tax on the Roth contribution from the paid excess sick when you have a full disability account?
If so, then what you said makes sense. If not, then I don't follow. If I put $12650 after tax dollars into my Roth to reach the IRS limits and get paid the full 72 hours of sick, how is that different than not putting that money in and having $12650 from my unused sick go into the Roth after I pay the taxes on it and get the remainder of the 72*(pay rate) - 12650 in my taxable pay check? If the company is paying the taxes for the Roth contribution, I can see the benefit.