Minimum Balance Plan
11-13-2022 | 04:26 AM
#71
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Joined: Aug 2020
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The MBCMP (Market Based Cash Balance Plan) is completely independent and separate from the Minimum Balance.
The MBCBP can exist without the Min Balance. The MBCBP may or may not be optional, depending on the Department of the Treasury’s decision on the matter, and is not a windfall for anyone, senior or not. It’s simple a tax-deferred vehicle for excess DPSP Cash.
The Minimum Balance, however, would be a windfall for a small section of the folks screwed from their DB retirement plans.
They are two completely different things.
The MBCBP can exist without the Min Balance. The MBCBP may or may not be optional, depending on the Department of the Treasury’s decision on the matter, and is not a windfall for anyone, senior or not. It’s simple a tax-deferred vehicle for excess DPSP Cash.
The Minimum Balance, however, would be a windfall for a small section of the folks screwed from their DB retirement plans.
They are two completely different things.
11-13-2022 | 04:39 AM
#72
Thread Starter
Can't abide NAI
Joined: Jun 2007
Posts: 12,078
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From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Tax Rate Taxable Income
(Single) Taxable Income (Married Filing Jointly)
10% Up to $10,275 Up to $20,550
12% $10,276 to $41,775 $20,551 to $83,550
22% $41,776 to $89,075 $83,551 to $178,150
24% $89,076 to $170,050 $178,151 to $340,100
32% $170,051 to $215,950 $340,101 to $431,900
35% $215,951 to $539,900 $431,901 to $647,850
37% Over $539,900 Over $647,850
--
Plus state. Georgia is 7%
----
I am FOR the MBCBP.
11-13-2022 | 04:44 AM
#73
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Joined: Sep 2016
Posts: 8,831
Likes: 499
In most states, "taxable income" for the final $ of yearly earnings is ~ 40%.
Tax Rate Taxable Income
(Single) Taxable Income (Married Filing Jointly)
10% Up to $10,275 Up to $20,550
12% $10,276 to $41,775 $20,551 to $83,550
22% $41,776 to $89,075 $83,551 to $178,150
24% $89,076 to $170,050 $178,151 to $340,100
32% $170,051 to $215,950 $340,101 to $431,900
35% $215,951 to $539,900 $431,901 to $647,850
37% Over $539,900 Over $647,850
--
Plus state. Georgia is 7%
----
I am FOR the MBCBP.
Tax Rate Taxable Income
(Single) Taxable Income (Married Filing Jointly)
10% Up to $10,275 Up to $20,550
12% $10,276 to $41,775 $20,551 to $83,550
22% $41,776 to $89,075 $83,551 to $178,150
24% $89,076 to $170,050 $178,151 to $340,100
32% $170,051 to $215,950 $340,101 to $431,900
35% $215,951 to $539,900 $431,901 to $647,850
37% Over $539,900 Over $647,850
--
Plus state. Georgia is 7%
----
I am FOR the MBCBP.
I am for an optional plan that doesn’t and won’t exist
11-13-2022 | 04:51 AM
#74
Thread Starter
Can't abide NAI
Joined: Jun 2007
Posts: 12,078
Likes: 15
From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Would returns not float with the market? Agreed, a 5% "target" trails the market by >6%. I do not understand why the optionality is hard for the IRS.
Last edited by Bucking Bar; 11-13-2022 at 05:16 AM.
11-13-2022 | 05:41 AM
#75
Gets Weekends Off
Joined: Aug 2020
Posts: 175
Likes: 0
In most states, "taxable income" for the final $ of yearly earnings is ~ 40%. The way it works out with the extra Net Investment Income Tax of 3.8% is going to be 35+7+3.8 for our family in 2022. ... 45.8%. The Paul Ryan/Trump plan moved the threshold for itemization. As a result, most people are taking their standard deductions.
Tax Rate Taxable Income
(Single) Taxable Income (Married Filing Jointly)
10% Up to $10,275 Up to $20,550
12% $10,276 to $41,775 $20,551 to $83,550
22% $41,776 to $89,075 $83,551 to $178,150
24% $89,076 to $170,050 $178,151 to $340,100
32% $170,051 to $215,950 $340,101 to $431,900
35% $215,951 to $539,900 $431,901 to $647,850
37% Over $539,900 Over $647,850
--
Plus state. Georgia is 7%
----
I am FOR the MBCBP.
Tax Rate Taxable Income
(Single) Taxable Income (Married Filing Jointly)
10% Up to $10,275 Up to $20,550
12% $10,276 to $41,775 $20,551 to $83,550
22% $41,776 to $89,075 $83,551 to $178,150
24% $89,076 to $170,050 $178,151 to $340,100
32% $170,051 to $215,950 $340,101 to $431,900
35% $215,951 to $539,900 $431,901 to $647,850
37% Over $539,900 Over $647,850
--
Plus state. Georgia is 7%
----
I am FOR the MBCBP.
11-13-2022 | 06:05 AM
#76
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Joined: Oct 2014
Posts: 1,015
Likes: 13
The IRS simply has not responded to any requests from us. Optionality is likely hard because no plan like this exists anywhere.
11-13-2022 | 06:31 AM
#78
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11-13-2022 | 06:44 AM
#80
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Joined: Dec 2021
Posts: 225
Likes: 30
I recall reading somewhere that the $$$ deposited in the MBCBP did NOT have survivorship benefits…ie…your DPSP excess is deposited for X amount of years and then you stroke out at 64….and that money that you put in…stays in the pot and your surviving spouse gets the shaft.
Truth??? Honest question. I do seem to remember there was angst about this 4’ish years ago when it was being designed.
Also, I do not believe for a nano second the the IRS is going to change the rules just for Delta Pilots. It will be an all in or nothing plan. If implemented…you will not have s choice. You will be enrolled, your DPSP cash will be deposited and you’ll have no say over the investment vehicle or returns.
Solid NO on the MBCBP…and the ship has sailed on the MBP/Lump Sum Plus up money grab.
Truth??? Honest question. I do seem to remember there was angst about this 4’ish years ago when it was being designed.
Also, I do not believe for a nano second the the IRS is going to change the rules just for Delta Pilots. It will be an all in or nothing plan. If implemented…you will not have s choice. You will be enrolled, your DPSP cash will be deposited and you’ll have no say over the investment vehicle or returns.
Solid NO on the MBCBP…and the ship has sailed on the MBP/Lump Sum Plus up money grab.
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