IRS Limits?
 

Is the advice to not take out more than 5% for after tax savings still good?

I ask because someone said that the IRS limit for the B-fund (the max pay limit) went up, and I thought it might be possible to hit the 401k cap before you hit the salary cap if you are saving the 5%.

Since we don't get paid cash over cap, I don't want to cheat myself.

Also, is there a place to easily figure out how much the company has put into our B-fund year to date? It sure would be nice if it was listed on my pay stub.

It is on the second page. Listed as PSRP Emplyr

Vanguard too


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OK, adding the number from the second page and the 18000 and 6000 and 5%, I think I am over the limit.

What is the max 401K contribution amount for an over 50 guy?

I think I may have already cheated myself out of some pay...

Thanks for the info.

OK, I found it on the Vanguard Site.

$60,000 total if you fall under the catch up rules.

$270,000 max pay.

Unless I miscalculated, 5% after tax should not push me over 60k until after I hit 270k.

It's $60K for us geezers. $54K for the under 50 crowd.

The 5% contribution should keep you safe, $270K is the max income basis this year:

$18K(401k) + $6K (CU) + $270K*.08 (B plan) + $270K*.05 (after tax) + $500 (401k match) = $59,600 which squeezes you in under the $60K cap.

Same math works for the youngsters, since they don't get the $6K catchup but are also limited to $54K. 5% after tax keeps you safe (this year).


Edit: Sorry, looks like you found the answer while I was gonkulatin', plus I fat fingered the age.

I'm not clear on what you're trying to calculate. Would you mind backing up a few steps and trying to lay it out in detail (maybe like you were writing one of those "For Dummies" books :D)

50 is the catch-up contribution limit age.

Is there a reason why FedEx pilots don't want to contribute more than the 415(c) limits?

Possibility of losing the full B fund amount that the company provides. Once you hit the limit, B fund monies stop.


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Yeah. Once a pilot hits either the $60K contribution limit (over age 50) OR the $270K income limit, the company stops B fund contributions, and we have no cash-over-cap; so maxing out the contribution early end up leaving company-provided money on the table.