Originally Posted by
Tecmo
Use the RHA calculator to minimize spill? No more with this LOA. The 2025 401(a)(17) is effectively reduced from 350 to 273.5 with 46.5 cap. If you previously minimized spill, loa would reduce take home pay in under to reach 415c limit starting in 2025.
Appreciate negotiating committee looking for solutions to the old RHA limitations. Active rha was a good step. Mbcbp was another good step. However don’t agree with loa implementation and eliminating option to minimize spill. Let’s get IRS approval first before making the CBP rules.
This is pure speculation, but it’s probably because they are fairly certain that rule will apply, but if they don’t implement it starting in Jan they won’t be able to implement the CBP until 2026.
I’m mostly just playing devil’s advocate. I’m not particularly animated by this in either direction.
It’ll have a fairly minor positive effect for some, and a fairly minor negative effect for others. It’ll have next to 0 effect on me 🤷