IRS Limits?
08-28-2017 | 04:37 PM
#13
Line Holder
Joined: Aug 2006
Posts: 1,357
Likes: 133
So the union wants us to go to an all B Fund with a newly developed plan to replace our current AFund and B Fund. Seems like most do not even know what we got going on now or how to correctly manage it. If you do not know how to calculate what the company puts in your B Fund each paycheck, where to find out your totals on the vanguard account you are doing yourself a huge financial disservice. We negotiated and you work for your money, spend the time to learn how to manage it, not just how to spend it on hookers and booze!
08-28-2017 | 04:47 PM
#15
Gets Weekends Off
Joined: Jul 2007
Posts: 4,064
Likes: 37
From: 767 Captain
Ok.
So we're basically talking about how much after tax $$ we can tap off our income stream to put into our B-fund before we hit limits that stop company contributions. This, if I'm not mistaken, is just another investment vehicle at that point (since the money is already taxed and future withdrawals receive no special tax treatment).
I like the B-fund and I max out my pre-tax contributions but, personally I prefer to diversify my after tax investment vehicles. I also believe there are better ones out there. YMMV.
So we're basically talking about how much after tax $$ we can tap off our income stream to put into our B-fund before we hit limits that stop company contributions. This, if I'm not mistaken, is just another investment vehicle at that point (since the money is already taxed and future withdrawals receive no special tax treatment).
I like the B-fund and I max out my pre-tax contributions but, personally I prefer to diversify my after tax investment vehicles. I also believe there are better ones out there. YMMV.
08-28-2017 | 04:57 PM
#16
On Reserve
Joined: Jul 2017
Posts: 24
Likes: 0
)$54,000 IRS 415C limit (those under age 50)
$270,000 income *.08 (B Fund) = $21600
401K contribution $18000
401k FDX match $ 500
Extra 5% of income (270k max) $13500
TOTAL $53600
50 and over catch up $ 6000
NEW TOTAL $59600
This allows you to stay under to IRS 415C limit of $54000 of those under 50 and the $60000 age 50 and up.
08-29-2017 | 12:04 PM
#17
Gets Weekends Off
Joined: Aug 2006
Posts: 1,813
Likes: 0
Yes, it meets the IRS requirements of an A plan, but like our B plan, we assume 100% of the risk. Unlike our B plan, someone else gets to decide how to invest the money and gets paid regardless of how it performs.
08-29-2017 | 12:24 PM
#18
Gets Weekends Off
Joined: Nov 2016
Posts: 936
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I am simply correcting incorrect information. I neither approve or disapprove of the proposal as I haven't seen it yet. It is not how I would proceed, but who knows till it is published.
08-29-2017 | 12:36 PM
#19
Gets Weekends Off
Joined: Apr 2006
Posts: 1,876
Likes: 0
From: 767 CA
Look at it like this:
$54,000 IRS 415C limit (those under age 50)
$270,000 income *.08 (B Fund) = $21600
401K contribution $18000
401k FDX match $ 500
Extra 5% of income (270k max) $13500
TOTAL $53600
50 and over catch up $ 6000
NEW TOTAL $59600
This allows you to stay under to IRS 415C limit of $54000 of those under 50 and the $60000 age 50 and up.
$54,000 IRS 415C limit (those under age 50)
$270,000 income *.08 (B Fund) = $21600
401K contribution $18000
401k FDX match $ 500
Extra 5% of income (270k max) $13500
TOTAL $53600
50 and over catch up $ 6000
NEW TOTAL $59600
This allows you to stay under to IRS 415C limit of $54000 of those under 50 and the $60000 age 50 and up.
08-29-2017 | 12:48 PM
#20
Gets Weekends Off
Joined: Jul 2009
Posts: 1,224
Likes: 0
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