Originally Posted by
Sunvox
Had to go to the NC to get the truth on this. The 16% that Delta gets is not extra profit sharing as is oft remarked by virtually everyone. The profit sharing pool is calculated FIRST using the much discussed metrics and THEN the 16% is calculated and taken OUT OF that pie. It is not an extra 16% paid out by the company on top of the profit sharing pie. Even though it's not as great as it seems on first blush, it's still great because it reduces the tax bill on the profit sharing.
This does not alter the fact that Delta consistently outperforms UAL on profit and therefore has much bigger profit sharing awards period.
Lastly, for those wanting to use profit sharing to enhance their 401k contributions one can simply increase the amount taken out of their regular pay check to equal whatever they desire, of course, within the limits set by the government which this year won't matter since the PS is so paltry.
So we can fix this in the re-write. Dollar amount vs. percentage and a DC as well.
Additionally, most of us go over the yearly limits in the 401. I’d like the remaining to come out as a cash check as opposed to being dumped into the HSA.