Let’s start with correct facts. IRS limits for 2023 are as follows: 1) Individual 401K contributions are $22,500. 2). Catch up if you turn 50 anytime in 2023 $7500. 3) Maximum company DC contributions are $43,500. For a total of $73,500 (if over 50). When you hit individual contributions of $22,500 and/or $7,500 for your personal contributions, you’ll just see a bump in your monthly pay, since your elective 401k contributions become basic income at that time. You will most likely still have company DC contributions continue after that up to $43,500. When the company DC limit is reached then that income on your paycheck will be called “spill cash”. All three categories are separate and don’t spill into each other. The only way to contribute “catch up” funds to your 401K is to elect a percentage for the catch up category in your Fidelity account page. When the company DC contributions reach the $43,500, only that extra “spill cash” will be flowed (if you don’t opt out) into your MBCBP. So, for you younger guys that might not seem like much. But if you’re on the top of the scale it’s significant.

The Blackrock fund is a balanced and very conservative fund, with lots of bonds and other securities that don’t fluctuate too much and has a 10 year return of around 4.5%. Doesn’t sound like much. But when your money goes in tax free and Alpa dues free, you’re saving over 25% and for the high earners potentially much higher…. As high as 35-37%. And the company will plus you up to keep your account at no lower than what you’ve ever invested into the MBCBP. So with the tax savings, you’re already 25% ahead of what you’d pay to invest that money post tax/Alpa dues.

You all need to make up your mind what’s best for you, but I hope I’ve helped some of you make a more informed decision.