Can you explain how that would reduce the number of pilots getting 401k Excess? My understand is the earning limit generates excess until the DC exceeds 20%, then it becomes the contribution limit that triggers excess.

Yes. 6 yr NB CA.

15% Roth 401(k) contributions. I will hit 22.5k end of June.

I will likely hit 66k sometime in September/October.

For this year I project 9-12k in excess. After taxes I get about enough to fund my back door Roth IRA next year. I find that a much better deal than the MBCBP even with 5% returns.

If the margins stay similar with inflation, the Roth contributions will exceed MBCBP at retirement and still have all the benefits of Roth at that time.

I would fully fund the IRA regardless of excess, so that ~6k after tax of excess money can be used in other investments or for experience(s). But either way I don’t want it locked into an irrevocable account that is out of my control.

Fully funding the Roth creates self induced 401k Excess. With earnings over 330k, you should only fund 13,200 of your Roth 401k. If you want more in Roth, that can be accomplished with an in-plan conversion. By contributing 22,500 to the Roth IRA, you are creating 9.300 of self induced MBCBP contribution.

For simple math next year, set your Roth 401k to 3% when company DC increased to 17%, then drop it to 2% in 2026 when DC jumps to 18%

You’re not wrong. It’s mostly out of laziness and I didn’t really think about it or make changes until recently. This will be the first year that I needed to think about it.

Some are like that, but theres a difference between those who "need" to (almost no one who has any dicipline or perspective whatsoever) versus those who are simply psychologically addicted to it.

I'd roll for several months, not even for the money but for the PB days and the fact that if I didn't I was going to work as much or more anyway. Then I'd sprinkle the PB days on my schedule during the slow months like Robert Downey Jr. (insert meme here) and go months barely staying current.

But I'd also turn down a bunch of GS's I simply didn't want to do. Each time never having a care in the world if another one popped up. One friend drives around town with a packed bag and pressed shirt hanging in his back window and shaves on his off days...just in case, because he thinks he "needs" the money. The college scam fantasy camp is real. LOL!

Congrats on having excess money problems at an early age. Many of us didn't have that problem until later in life. There are even more money problems in store as you continue accumulating. Enjoy the journey.

⚠ WARNING CONTROVERSIAL TAKE.. DYODD TALK TO FINANCIAL ADVISOR ⚠

Anyone else feel that retirement accounts are middle class vehicles designed to keep you working for a long time?

Personally I don't contribute a cent and let the company do all the contributing. My near term goal is to have more investable cash outside of the 401k vs in it. Between real estate and Brokerage accounts I'm getting close. A 401k can't provide me 150k in cashflow at 50, but investing outside of the 401k can.

Retirement is for retirement. Just like doctors and lawyers we have already won the game. If we do nothing but 16% DC, most of us will have a very comfortable age 65+. I don’t need a super exotic plan to win. I’m already there. Too many compadres have tried to grasp for that extra alpha and failed. Concert promotion, flipping beach condos, strip malls, to name a few. Ever heard the term dumb-doctor-deal? I keep the 401k plain and boring. I don’t think it’s a ball and chain. I don’t really fear the low return of the MBCBP either- the tax deferment is worth it to me, the dues savings is nice, and asset type is a small part I want to own in the overall account.

OTOH I have my own brokerage account that I use for investing and maybe a little speculation. If I lose it all I will still have a comfortable retirement. If I win with it, maybe I have a really nice car instead of just a nice car. Maybe I have a really nice boat instead of just a nice boat. Maybe I drop more trips and travel with my wife vs working a regular month.

A lot of pilots don’t want to be landlords or syndicate investors with Grant Cardone. Best of luck with your cash flow plan. Remember us common folks back in coach! :)

The account structure and rules are absolutely set up to keep middle class working. They aren't just middle class accounts though. Mitt Romney managed to hit 9 figures in his Roth IRA. It's about what you put inside the account that matters most.

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I fit this demographic.. I'm getting irritated at being in such a high marginal tax bracket though especially because I Roth pretty much all of my money. Any low effort ways to lower my taxable income besides buying an apartment building you can suggest? :D