PastV1

Not if you elect to max out 401K already.

Flyinhigh

401(K) deduction was already maxed out when this deposit hit the account. This was a way to contribute more than the allowable 401 contribution of $16,500 for 2011. Plus, the entire amount went in to the 401 with no deductions of any kind!

FDXLAG

Except for the 100% deduction you took on all of the hours to get your disability account up to 100%. These are all personal decisions. I am happy you found your beach, it aint mine.

Flyinhigh

How do you figure that the DSA bank is a 100% deduction? Other than time off for sick, you really can't do much with your 72 hours annual sick leave. The unused portion will build up your DSA. As I said before, the 686 hours in the DSA gave me a feeling of security if something should happen to me health wise. After those 686 hours were in place, I could then convert unused RSA hours or MUS hours to 401 contributions. This is about the only way I know under our current contract to convert sick time to cash (unless I missed something).
Maybe this needs fixed in the next contract!

FDXLAG

Again we are talking MUS or MUD to fill your disability account. Granted there is a lot of potential income you earn by flying MUD but unless you have the bank maxed out (614 plus this years 72) you are not compensated for flying MUS.

Let's take a new hire. He calls in sick 72 hours a year. He also flys 72 hours MUS. After 9.5 years he has filled his bank. Every hour he "earns" in sick overage is an hour extra he has worked in MUS. If he flys MUS to get his sick account to 72 hours in year 12 he will have worked 2 hours to get one hour contribution to his PRSP.

Part of the perspective required is do I plan on working for FDX 15 or 25 years. The math does not work for me ymmv.

kwri10s

Try that explanation again. Too hard to follow your work two for one theory.

Lucky7

Since this is under the makeup sick topic. I believe LAG is referring to the weeks you worked to get back up to 686 and than to 72 hours each year thereafter, Instead of taking time off away from the office to and keep your originally scheduled days off.
An individual pilots financial plan is always the best way to work it, Just ask them. Working extra to put more into the 401k in hopes of seeing it when I hit 70 and then paying whatever tax rate is in place isn't in my plan. Seeing how these current rates have been the lowest in my lifetime. I'll take the pay and time off now, put it anywhere I want and maybe buy a little extra insurance with the remainder for a little security. If I hit 686 in the meantime so be it but I'm not in a race to get there.

Raptor

Be careful about putting excess PRE-TAX funds into a 401(k) and other qualified elective deferral plans. There's a limit each year under section 402(g).

IRS Announces Pension Plan Limitations for 2012

+The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $16,500 to $17,000.

+The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.

Let's say you max your 401(k) at $17000 for 2012 through PRE-TAX payroll deduction at FedEx. Then you have another source of PRE-TAX 401(k) contributions (another company you do some part-time work for, the Thrift Savings Plan from the military reserves/guard) or you have contributions through 403(b) plans--you will exceed the 402(g) limit and it will only be caught by you or the IRS.

Every source of contributions thinks they're following the IRS code and you appear to your employers/military to be within your max contribution limits, but only you, as the taxpayer, know you're over the 402(g) limit when they're all combined. This can cause a trigger with the IRS for audits and repayments with penalties.

Remember, though, that you can make as much AFTER-TAX 401(k) contributions as you wish. I'm not sure how the excess DSA payment is made...it is after tax I assume?

FDXLAG

Ok let say you work for fdx for 19 years and you use all your sick leave every year. You also MUS 72 hours every year. At the end of that 19 years you will have had about 686 extra hours put into your sick overage account. But you will have worked 1368 hours extra to get it. The good news is if you go on six months disability you break even.

An extreme example to illustrate a point.

Busboy

1368? Did you get bumped off a 4hr trip? Or, did they just give you the extra 2 hrs in your sick bank? Or, does your "about" cover that?