That's apples & oranges.

- Which maxes "first" is what controls whether you're maxing the elective deferral (the $18K) or the company limit (15% of $265K = $39,750). If you make large enough contributions, it'd be easy for a high-earner (>$265K) to contribute $18K before reaching the $265 limit--in which case the full deferral limit has been reached, and the company contributions will stop at the $53K (total) mark, with the excess coming as taxable income. Mostly a moot point, though, since either way the total tax-deferral (and thus total reduction to taxable income) is the same $53K.

- The $6K over-50 is independent of the other limits--an over-50 employee can add up to $6K to the total of his and/or the company's contributions without regard to the limits.

- Where you can limit your tax advantage (assuming your goal is to max out your $53K limit) is if you make too-large of a 401(a) contribution, thus forcing some of your company contribution to taxable income. This problem doesn't exist for anyone making over $233,333: their $18K deferred + their 15% company ($35K) = $53K, so the question of making a 401(a) contribution doesn't arise. Anyone making less than that $233,333 would need to make a 401(a) contribution to hit the $53K limit--and would therefore need to ensure they don't contribute any more than the difference between the limit and the pre-tax (elective + company). If they do, they forgo the tax deferral.

(This last point assumes that tax deferral is the prime goal. Different strategy altogether if one wants, say, to maximize Roth-type savings.)

 

Man I would love to have these kinds of problems.

 

Heh. Me, too! I'd like to think I'll join the over-$265K club someday, but it's s ways off...!

 

As my 14yo daughter says: "these are 1st world problems Daddio".

I hit the 265K limit last month, because I was only putting 1% in 401k and 2% in catch-up... Knew about the 53k, 18k, and 6k limits but not the 265k limit... thought Delta was going to fill me up to the 53k limit.

Luckily, I noticed the 401k contributions stopped and was able to change my contributions to 14% for the remainder of the year... which will be a wash when one figures in the 15% cash contribution by Delta.

Could they make this stuff any more convoluted?

Maybe I missed it, but it would be nice if DALPA put something out at the end of each year to help us non-finance guys set this up.

 

Looking for advice on best way to maximize payback days.

I'm on the ER. Can I pick up, then drop, an international type trip (something with a lot of block in the first duty period) on the last day of the bid period and drop the trip (assuming adequate staffing on that date) before the next month's schedule is published?

Would that use just 1 payback day or will they put additional ones at the beginning of the next month in PBS?

I just want to get the max hours out of my 2 payback days. Thanks.

 

Yes to scenario 1 but scheduling will use both payback days to drop a multi day trip.

Also I'd like to add an addition to rhinos and others discussion of green slipping on off days.

If you get a GS, and it isn't on an x or golden, you can request to move an x day to the first day of the trip. With scheduling concurrence...This will give you an extra payback day.

So let's say that worked.

Now remember to move x days, you need reserve coverage and 3 days in advance. So, you've got day 1 on an x day and you should have time to get x days moved under days 3 thru whatever. Which, if successful, will give you payback days at the end of your trip.

 

Yep, I went over the 265K limit this month. 3 straight months averaging over 170 hours credit at 7ER A pay did it. I filled up the 401K and Catch up within a few$. I'm going to fill up with the PS in FEB instead of going the monthly route of contributing.

 

You can only move an X day to the first day of a trip, if you have an X day within the trip that doesn't have a duty period as part of that trip.

I probably could say that better. Here's an example: You're on RES FRI, you have X days SAT and SUN. THURS you pick up a 3 day GS that reports on FRI. The trip has a 30hr layo on SAT, and thus no duty period. You will not get pay above guarantee for FRI in this scenario, so you don't get the full trip guarantee as GS pay. If you ask scheduling when they call you for this trip to move your X day on SAT to FRI, they will do that, thus giving you full GS credit for the trip. This does not require the normal rule of 3 days advance notice and coverage being required.

In a nutshell, the X day you want to move to day 1, has to be within the footprint of the trip, and has to be free of duty.

 

If I'm on call FRI and have X days SAT and SUN, they can not assign me a trip that reports on FRI and releases on SAT. They can fly me into SAT via reroute, but they can't assign me flying on the X day from the start without paying it as a GS or IA.

 

Thanks, I double checked the sched ref handbook and that appears to be the case. Biggest difference between IA for a guy on reserve and a line holder is the guy on reserve has to pick up the phone .