Profit Sharing Time
09-20-2021, 07:18 AM
#94
New Hire
Joined APC: Aug 2021
Posts: 9
distribution of Profit Sharing
It would seem the company tax deduction would be the same if your Profit Sharing monies were paid to you as income, or paid to you as a company contribution to your personal retirement plan, just like they do for the B plan.
Annual company contribution limits are higher than the employee limits for say a 401k.
Is there a tax law that prevents the company from distributing Profit Sharing in this way?
The benefit to the pilot would be defering taxes and lowering adjusted gross income.
Annual company contribution limits are higher than the employee limits for say a 401k.
Is there a tax law that prevents the company from distributing Profit Sharing in this way?
The benefit to the pilot would be defering taxes and lowering adjusted gross income.
09-20-2021, 07:24 AM
#95
Line Holder
Joined APC: Apr 2018
Posts: 70
I was only here for 1 PS check, but I thought I remember filling out a form of how much I wanted to be paid as income, how much to be paid as 401(k), HSA contr., etc. so yes, you can just choose to accept everything as a 401(k)
09-20-2021, 09:12 AM
#96
Gets Weekends Off
Joined APC: Sep 2015
Position: UNA
Posts: 4,412
Our PS in pensionable, meaning on top of whatever dollar amount is paid an additional 16% goes to our 401k. But no other than mega back door Roth (which may be going away) you cannot contribute PS to your retirement above the limit. (19.5k or 26k depending on your age)
As far as law goes they either have to do it for everyone or no one for it to be a non elective deferral (and thus not count towards your personal limit) is my understanding. Given the amount we already get in 401k, I don’t think there would be much desire yo change PS.
I believe jetblue does this but we don’t.
As far as law goes they either have to do it for everyone or no one for it to be a non elective deferral (and thus not count towards your personal limit) is my understanding. Given the amount we already get in 401k, I don’t think there would be much desire yo change PS.
I believe jetblue does this but we don’t.
09-20-2021, 04:35 PM
#97
Can’t find crew pickup
Joined APC: Jun 2021
Posts: 1,975
Originally Posted by Gone Flying
Our PS in pensionable, meaning on top of whatever dollar amount is paid an additional 16% goes to our 401k. But no other than mega back door Roth (which may be going away) you cannot contribute PS to your retirement above the limit. (19.5k or 26k depending on your age)
As far as law goes they either have to do it for everyone or no one for it to be a non elective deferral (and thus not count towards your personal limit) is my understanding. Given the amount we already get in 401k, I don’t think there would be much desire yo change PS.
I believe jetblue does this but we don’t.
As far as law goes they either have to do it for everyone or no one for it to be a non elective deferral (and thus not count towards your personal limit) is my understanding. Given the amount we already get in 401k, I don’t think there would be much desire yo change PS.
I believe jetblue does this but we don’t.
09-20-2021, 05:10 PM
#98
Gets Weekends Off
Joined APC: Sep 2015
Position: UNA
Posts: 4,412
Originally Posted by Whoopsmybad
And whatever you get in PS also 16% of that goes into the 401K, so that’ll count against your limit too
to be clear, it counts towards your total contribution limit (415c which is 58k) but not your elective deferral limit (19.5k or 26k)
09-20-2021, 05:24 PM
#99
Can’t find crew pickup
Joined APC: Jun 2021
Posts: 1,975
Originally Posted by Gone Flying
to be clear, it counts towards your total contribution limit (415c which is 58k) but not your elective deferral limit (19.5k or 26k)
09-20-2021, 07:24 PM
#100
Gets Weekends Off
Joined APC: Sep 2015
Position: UNA
Posts: 4,412
Originally Posted by Whoopsmybad
I didn’t know that, I need to change how I do things!
total elective deferrals (just you) $19,500 if under 50 and $26,000 if over 50
total wages that you can have the company put money in your retirement based on $290,000 (eg if you don’t put anything into your retirement account, after you earn $290,000 the company can’t continue to put your 16% DC into your 401(k) even though you are below the $58,000 limit)
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