No it’s not. The limits in 2023 are 1) individual $22,500. 2) Catch up (after 50) $7,500. 3) Company DC limit $43,500.

In 2022 it was 1) $20,500. 2) $6,500. 3) $40,500.

If wrong then I maxed every category out by November, didn’t change a single percentage on Fidelity and those limits are exactly what I paid. Including my Roth + traditional 401K. Try it. And this year I’ve already maxed out both of my personal limits and my individual 401k + Roth and Catch up equal exactly $30,000 to the penny.

Tell me how I’m wrong.

From the tax code: 2023 Limitations Adjusted as Provided in Section 415(d), etc.

The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2023 from $61,000 to $66,000.
The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of section 415(b)(1)(A). After taking into account the applicable rounding rules, the amounts for 2023 are as follows:
The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3) is increased from $20,500 to $22,500.

I’m spot on. Look up the tax code.

You are welcome.

That was off the union blurb. Yes i was wrong on spill cash. It’s called 401k excess via our pay stub. I stand corrected. Any extra over the individual or catch up isn’t listed differently than just your normal flt pay or flt advance. It’s only the extra, in excess of your company DC that’s called 401K excess. I think, according to the new MBCBP it’ll be renamed to be called “spill cash” according to what Alpa put out.

From NN 23-17: “Under the current PWA, Company-funded retirement dollars (Defined Contribution, or “DC”) are paid on all eligible income, and those contributions that are earned beyond the existing 401(k) IRS limits must be paid as taxable income. This taxable income is known as “401(k) Excess Cash” or “spill cash” and is also subjected to ALPA union dues.”

So spill cash was also correct. Do you get ALPA’s Negotiator Notepads?

lol, yup, everything I said was correct. I appreciate the backup :) His #3 is correct IF and ONLY IF the employee contributes the full 22,500 in employee contributions. At that point the company can only put 43,500 total DC in since at that point 22,500 + 43,500 = 66,000, which is the IRS limit for 2023. The company absolutely can put more than 43,500 in. As I said in my earlier post, the company can only contribute DC on 330,000 in income. 330,000 X 16% = 52,800. THAT is the max the company can put in if the employee puts in between $0 and $13,200.

1 and 2 are correct. 3) You actually quoted the correct answer of $66,000 directly from the tax code and proceeded to claim it was lower. $66,000 is both the company limit and the 415c limit. Any personal contribution goes against the plan limit. You phrasing of the limits is a misrepresentation of the true limit. You are correct that personal contribution is required for the $7,500 catch up contribution.

Way too many pilots are confusing tax deferred and tax free.

Tax deferred is simply a bet that your tax bracket in retirement will be lower than it is currently.

Way too many pilots don’t understand the difference between a “tax bracket” and marginal tax rate versus effective tax rate, and how to do a realistic assessment thereof.

Agree. My brain hurts. I am right and partially wrong. My version uses full funding by individual. I don’t see why you’d do differently. I believe in sheltering as much tax now as I can.

We should applaud those making the effort to learn though. There so many aspects to personal finance that just aren't taught in schools. Our education system is for training workers and indoctrination. It's no surprise it is just a limited percentage of the population who really understand how the system works.

I don't know what you are specifically getting at with this sentence, but several things:

So about that 401a contribution that you ignored from my previous post.... I contributed WAY more than the 401k limits this and the last several years. I contributed over $40k to my Fidelity account through both 401k and 401a this year. This all goes towards that $66k limit. And I contributed it from earnings. Not the company

Deductions are shown differently than earnings on a paycheck. You know this right? I deducted both 401k (Aftter Tax) and ROTH401. Once I hit $66k total contributions to Fidelity, a mix of ROTH401, 401k (After Tax), and Company 401(k) Fixed, I started getting 401(k) Excess. In a few months, I will start getting 401(k) Excess Plus. Not a single bit of any of that was solely listed in only normal flt pay(sic) or flt advance(sic). You know deductions come out of earnings right? Medical, dental, vision, etc all is also listed as flt pay and/or flt advance. Right?...


Pls cont w/ ur fax tho.