Originally Posted by
acl65pilot
Great points. I also think that a pilot, like with a bonus check could stick as much of a revenue sharing check as they want/can in to a tax protected account. See if we can max our 401K out each year, see if we can set up a 401C. I personally would put as much as I could in to these types of an account.
a 1% bump in DC contribution a year, plus this, and I may actually get to retire at 55.
The tax code prevents much of what you want.
For any pilot to have the option to place a contribution in a tax qualified plan (whether profit sharing, wage, or special payment) limits all the participants to the individual elective deferral contribution limit (section 402(g), $16,500). If the contribution is not optional (meaning any special payment is designed to go into the plan and the participant doesn't have access or "choice", then the 415(c) limit of $49,000 applies.
401(c) accounts are for self-employed individuals or employee-owners. Contributions to 401K and 401(C) plans from the same corporation are generally prohibited.