IRS Limits?
08-28-2017, 01:17 PM
#1
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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.
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.
08-28-2017, 01:20 PM
#2
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Originally Posted by Nightflyer
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.
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
08-28-2017, 02:30 PM
#4
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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.
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.
08-28-2017, 02:40 PM
#5
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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.
$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.
08-28-2017, 02:52 PM
#6
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Position: A300 CA
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Originally Posted by Nightflyer
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.
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.
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.
Last edited by zulu; 08-28-2017 at 03:14 PM.
08-28-2017, 02:56 PM
#7
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Originally Posted by Nightflyer
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.
$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.
)
08-28-2017, 03:06 PM
#8
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Posts: 392
Originally Posted by zulu
It's $60K for us geezers. $54K for the under 60 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'.
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'.
Is there a reason why FedEx pilots don't want to contribute more than the 415(c) limits?
08-28-2017, 03:15 PM
#9
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Originally Posted by jumppilot
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?
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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08-28-2017, 03:18 PM
#10
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Originally Posted by jumppilot
Is there a reason why FedEx pilots don't want to contribute more than the 415(c) limits?
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