Originally Posted by
MalteseX
Yes. From what I understand (since hearing about this yesterday and reading about it since) the limit for 2023 on this “vehicle” is $330,000. If your gross pay goes above this figure, all 11% inputs cease. The company contribution (ie “new money “ - not including interest payments), will be $36,300 per year.
But this is from me and my C student learning curve.
Originally Posted by
nightrider
So on our 12% b plan i top out the irs limit in September every year, no payments to the acct after that
your captains will top out the same way and then the 11% additional isn’t payed to anyone, because you have already topped out for the year, correct me if I am wrong, if I am right then this is a horrible deal for your guys.
I'm not in favor of the TA, and not a fan of the MBCBP, but let's ensure we understand how it truly works. There will still be a 9% B Plan which is currently capped at $330K (IRS limit adjusted annually) = $29,700 this year.....and a totally separate bucket for the 11% MBCBP money - 11% which is capped by the same IRS limit, $330K this year = $36,3000 this year. The company just sent out an email explaining this. The company will not make any contributions to either your B Fund or your MBCBP once you exceed the specified IRS limits each year.
Essentially, we will be selling the A Plan for our new hires for 11%. Previous, ALPA estimates on the value of our A plan were 20-24%. The company is getting a GREAT Deal moving forward.