Originally Posted by
m3113n1a1
This is what the MBCBP is:
Hey, how about we lock your 401k excess cash in a vehicle that underperforms the s&p for the next 30 years so you can defer your taxes until retirement? Sound like a good deal to you?
Oh, you wanted to invest the excess into your Roth IRA, real estate, businesses, or your personal brokerage account? Nope! Not allowed.
It's for overages, when we get 20%DC the company fully funds the 401k. All you need to do is nothing and there's no spill to manage. Take your post tax money and do what you want with it. Nobody is locking up anything unless you choose to. Next year that's $66,000 for everyone making $330,000. If you contribute to an IRA and roll to a roth that's another $6500. If your 50+ add $1000 to the IRA and $7500 to the 401k. The current setup shelters up to $81000. If you go over just reallocate. Move your bonds into stocks and the MBCBP become you conservative low risk portion of the total portfolio. The MBCBP is already negotiated the only thing holding it up is optionality. With our current set up there's tons of ways to avoid overages and a minimal amount will probably make your conservative investment portion of your diversified portfolio perform better. Don't fear the boogey/straw man of jailed funds, they are guaranteed returns.