Airline Pilot Forums

Airline Pilot Forums was designed to be a community where working airline pilots can share ideas and information about the aviation field. In the forum you will find information about major and regional airline carriers, career training, interview and job seeker help, finance, and living the airline pilot lifestyle.




View Full Version : 401k safe harbor match true-up


crxpilot
03-30-2018, 04:55 AM
Has anyone received their 401k safe harbor match true-up for 2017 yet? Normally they seem to have it done by now but no such luck so far.


Machaca
03-30-2018, 07:27 AM
Apparently, it can take up to two weeks for Fidelity to post...first time for me maxing out last year, so I'm curious as well

crxpilot
03-30-2018, 03:42 PM
Just an FYI, benefits said they have been processed and should be in your accounts within 5 business days.


labbats
04-04-2018, 05:37 PM
Heard from someone who made a lot last year that company match of 10% is capped at $270,000.

So our 401k match isnít 10% if you make more than that. Itís zero.

sqwkvfr
04-04-2018, 05:44 PM
Heard from someone who made a lot last year that company match of 10% is capped at $270,000.

So our 401k match isnít 10% if you make more than that. Itís zero.

Calm down...thatís an IRS rule.

labbats
04-04-2018, 07:15 PM
Good point. Didnít mean to overdo it but nonetheless we need a direct contribution next contract.

sqwkvfr
04-05-2018, 03:25 AM
Good point. Didnít mean to overdo it but nonetheless we need a direct contribution next contract.

Absolutely.

Andy
04-07-2018, 04:59 PM
You guys HAVE to get rid of the match and get it to be DC, as labatts stated.

At United, our company excess contributions go into our RHA VEBA (Retiree Health Account Voluntary Employee Beneficiary Account). Check with other airlines to find out what happens to the excess once one exceeds $270K and decide what works best for you guys.

Here's how our contract reads:
24-G-3 Employer Excess Contributions
In the case of any direct employer contributions under the PRAP described in Section 22 that
cannot be contributed to the PRAP due to Sections 401(a)(17) or 415(c) of the Internal
Revenue Code, an equivalent amount shall be contributed to the Pilot’s RHA at the same time
as the direct employer contribution would have been made, or as soon as reasonably
practicable thereafter.

PRAP = Pilot Retirement Account Plan; United's pilot 401k

Bottom line is the company isn't paying anything beyond the $270K. Same thing happened to my wife's match (non airline) when she maxed out her 401k - the company stopped contributing so now we time everything out.

The only workable strategy for those making over $270K is to get the full 10% match until they earn $270K, and then make whatever topoff contributions to their 401k they want to make. Hope this information helps you guys for the future.



Search Engine Optimization by vBSEO 3.6.1