Originally Posted by
notEnuf
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.
Anyone who makes more than 305k this year, or 330k next year has no optionality. The only way to “choose to not cause excess” is to stop working. I’ve made significantly over the irs compensation limit for the last 4 years and I’m nowhere near retirement.
It’s also absurd that you claim just because the language is in section 26, that all of that money must be used for “retirement” exactly as dictated by you. As long as we have had the DPSP, pilots have received overages as cash. They can do whatever they want with that money. Sure it’s great to have some options if additional tax deferral would be beneficial, but that’s not the case for everyone. The VEBA would have confiscated all overages and died quickly once the pilot group figured it out. The MBCBP will suffer the same fate if mandatory.