Originally Posted by
bugman61
We get it. You want the mbcbp. I want you to have it too. I haven’t seen anyone on this site, or FB, or talked to anyone in person who doesn’t want that to be an option for you. The concern is that if the IRS doesn’t allow it to be optional, everyone could be forced into the plan. Is that what you want? Do you support the plan for yourself at the expense of everyone else who might want a different option? Clearly nobody here will convince you of the shortcomings of the MBCBP, can you at least admit that there is validity to some pilots wanting to do something else with their 401k excess?
I get it, you don't want anymore DC.
This is completely false. You already have optionality by the amount of funding you choose. The company can contribute up to 20% of $330,000 without any excess. If you choose to cause excess that's on you. I'm all for optionality but the reality is going to come out soon that the IRS is not on board with it. Then what? Is a "mandatory" deposit of overages you can determine really a bad thing. Most of us will find ways. I can save $81,000 in sheltered vehicles next year. And an unlimited amount if it goes into 529s. Some of that will be in conservative diversified income yielding assets. Does it matter if that small portion is in a MBCBP or another account? If you make $400K we are taking about $11,200 or 16% of 70,000 over the earnings cap. At 20% there no need to contribute anything and it's fully funded. If you're making $330,000+ then you are probably closers to retirement anyway and need to taper risk. Or you have already built your empire and a few thousand dollars a year isn't moving the needle.