FedEx Retirement Data

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01-13-2011, 07:28 PM

#101

Busboy

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Joined APC: Aug 2006

Position: leaning to the left

Posts: 4,184

Quote:

Originally Posted by GreaseA6

My only contribution to you amazing R&I knowledgeable gurus is that you did not include the catch up provision of an additional $5500 per year for over 50 age group. I know its generic but $$ is $$.

I did mention that. Maybe I should have used larger font? .

01-14-2011, 06:43 AM

#102

Open Mind

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Joined APC: Feb 2007

Posts: 83

Quote:

Originally Posted by Busboy

The $49,000 limit for the DC plans include: B-Plan + Pre-tax(RSP) + After-tax(OSP) + Emplyr Match + Sick Bank Buyback contributions. Any eligible 401k Catch-up contributions do not count towards that limit.

The "B-plan" is 7% of up to $245,000, the IRS 401(a)(17) limit. Or, $17,150/yr, for 2010 and 2011.

So, if you max out the 401K($16,500) and make $245,000...You'll have contributed 16,500(pretax) + 17,150(B-plan) + 500(Comp Match)= $34,150. Leaving almost $15,000 to contribute through SickBank Buyback(61hrs) or After-tax contributions.

In total agreement with this explanation but would like to add that the B fund is "capped" at 7% of the limit(245K). Anyone earning above the limit receives the capped amount ($17150), there's no provision for cash/taxable payments to continue to 7%.I'm aware of at least one airline which "had" this provision, we don't. The only account which will continue above the tax deferred limit($49000) is the sick bank buyback. A full sick bank(688) will yield 72hrs X hrly rate, not an insignificant amount. This was all stated previously but as I read thru, it seemed a little confusing.

01-14-2011, 09:42 PM

#103

RedeyeAV8r

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Joined APC: Jan 2006

Posts: 2,838

Quote:

Originally Posted by Busboy

I did mention that. Maybe I should have used larger font? .

The Catch up contributions are not part of the Cap.

01-15-2011, 09:19 AM

#104

Busboy

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Joined APC: Aug 2006

Position: leaning to the left

Posts: 4,184

Quote:

Originally Posted by RedeyeAV8r

The Catch up contributions are not part of the Cap.

??????????????? Fine... I'll enlarge the font.

Quote:

Originally Posted by Busboy

The $49,000 limit for the DC plans include: B-Plan + Pre-tax(RSP) + After-tax(OSP) + Emplyr Match + Sick Bank Buyback contributions. Any eligible 401k Catch-up contributions do not count towards that limit.

The "B-plan" is 7% of up to $245,000, the IRS 401(a)(17) limit. Or, $17,150/yr, for 2010 and 2011.

So, if you max out the 401K($16,500) and make $245,000...You'll have contributed 16,500(pretax) + 17,150(B-plan) + 500(Comp Match)= $34,150. Leaving almost $15,000 to contribute through SickBank Buyback(61hrs) or After-tax contributions.

01-15-2011, 11:20 AM

#105

Flyinhigh

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Joined APC: Dec 2007

Position: Retired

Posts: 404

The way the FedEx Non Qualified pension pays out recently changed. Any Non Qualified pension earned prior to 31 December, 2004, will be paid out as an annuity, just like the Qualified portion. Any Non Qualified pension earned after 31 December, 2004, will be paid out as a lump sum payment 6 months after you retire. This may be something to include in your calcualtions about when to retire. THe lump sum, if large enough, could trigger a significant tax event if it pays out in the same year you retire.