who likes paying taxes?

I assume the blame for our current way of doing taxes lies more with major accounting companies.

Also the rich may not like paying taxes, but it looks like they are still paying.

https://taxfoundation.org/federal-income-tax-data-2021/

 

Every Jan, DALPA puts out a "Check your Checks" to help get ready for tax time. One of things they cover is the 401K money. Here is the copy/paste from earlier this year.

"As mentioned above, Company contributions to the Delta 401(k) Retirement Plan for Pilots would have stopped if the combined contributions (yours and the Company’s) reached $58,000 in 2021, per IRC 415(c)(1)(A). Further Company payments (16%) continued in the form of taxable wages and are listed under Earnings as “401(k) Excess.”Note: Catchup contributions (max $6,500) are not counted against your individual contribution limit ($19,500) or the combined contribution limit ($58,000).

If you reached the income limit set forth by IRC 401(a)(17) of $290,000 in 2021, the Company contributions to the Delta 401(k) Retirement Plan for Pilots ceased, regardless of whether you’ve reached the 415(c)(1)(A) ($58,000) limit. Upon reaching the 401(a)(17) income limit, all further Company contributions are received as taxable wages and listed under Earnings as “401(k) Excess Plus.”

For tracking purposes, the contributions that apply to the combined limit are listed under Employer Contributions using the term “Company 401(k) Fixed.”

 

Come'on, Man. Don't let facts get in the way of a good emotional appeal.

"The rich need to pay their fair share".....I've heard that somewhere.

 

the “1% paying more tax than the bottom 50” trope is kinda meaningless without knowing what share of the income they’re receiving.

 

what would be the reason to intentially max out the 61k limit early, if the net taxable income is the same.


So. In simplest terms, if you given a choice to invest 61k tax free, would you do it asap, or wait?

BTW, your pay stub blows mine out of the water. Like way out. Nice job.

 

the answer to your question was in the link I posted.

 

Front loading (via 401a after tax) is how many of us maximize Roth contributions.

 

Sorry, I’ve gotta throw the BS flag on this argument.

Drawing an equivalence between UNA/WARN notice pilots potentially having NO job at all to DZ’ers having a little less in retirement is absurd.

I don’t blame you for wanting MB. Truly. But you can’t blame the vast majority of the list balking at “taking care” of a small remainder of pilots 17 years later who had 5 extra years of peak-earning work. Especially when the pilots who retired 1 day short get nothing.

It’s not going to happen. The votes walked out the door with the VEOP. And we are adding 200 post-probationary pilots a month who as (mostly) don’t want it.

 

Is that basically just get to 401 limit asap, then roth the 401k excess?

I've basically taken this year to recover from my year on orders (yes, company 401k gets there but my take home was less than half of my Delta pay) but next year I'm open to ideas.

Sent from my SM-G965U1 using Tapatalk

 

MBCBP is separate from Min Balance some of you speak of. The min balance is an augment to the MBCBP or seed money to add to it. The MBCBP is a good secondary tax shelter that everyone will benefit from.