Originally Posted by
CX500T
As someone who has spent most of my time at Delta basically making up for my 30s being an economic wasteland (paying off medical debt, student loans, etc) what would be the reason to intentially max out the 61k limit early, if the net taxable income is the same.
Say I put in 20k pre tax. (limit is around there, I would hit that if we were in a PS year)
Company limit is now 41k to hit 61k. Now hitting that at $256k or so, which is well in the "I just fly ALV" range for a 320A
But now the last 10k of the 16% is 401k Excess (DPSP in the old payroll code)
If my taxed income is the same is there a benefit to having put it in myself or not?
Thru OCT 31 pay stub this is mine:
$39,526 COMPANY 401K FIXED
$7,411 410(K)
$4,941 ROTH
Right now, I will probably have about $57,500 between all three (assuming RES guarantee rest of year)
I want to say I have 3% 401k, 2% Roth, but last time I set those numbers I was coming back from long term mil leave but that looks right.
I think the arguement is that it's generally better to get your money into the market sooner (esp. with a retirement account since it's longterm) to hopefully capture more gains. Obviously we are only talking maybe 6-8 mos sooner, but year after year if you are getting that 20k in your 401k in Feb. vs say incrementally into Aug. maybe that will be of some benefit longterm.