Frontier Negotiations Discussion
#4631
Gets Weekends Off
Joined APC: Aug 2008
Position: Swing that gear
Posts: 354
#4633
Gets Weekends Off
Joined APC: Dec 2012
Posts: 2,099
appendix A to LOA 1 is contract transition language that was TAed early last year. Its to protect the 5% company 401k match contribution for pilots that maxed due to IRS limits prior to the end of the calendar year. When the pilot maxed the company stoped matching that 5% and is required to catch up by Jan 30 the following calendar year.
#4634
FYI I was told today by the Benefits Director that the RA bonus is “not eligible” to apply to the F9 401(k), either true up 2018 or 2019 participation, contrary to FFTMEC-Fastread 1/10/2019 “Special Update-TA Ratified” email......
#4635
Gets Weekends Off
Joined APC: Dec 2012
Posts: 2,099
Correct. Negotiator newsletter #41 explains this. All you have to do is bump your feb. 5 401K%. Now your probably not going to be able to get to the IRS limit of 19 grand but you can do 90%.
#4637
Gets Weekends Off
Joined APC: Apr 2017
Posts: 465
Ok, this is simply regarding putting more of the bonus into the 401k. Nothing to do with getting more money out of the company via their DC which is not possible, correct? Thats how I have understood it anyway. The only thing this would help is to reduce tax obligations on the bonus based on how much you put into traditional 401k, correct? It would simply be taxed later when you take it out.
#4638
Gets Weekends Off
Joined APC: Dec 2012
Posts: 2,099
Ok, this is simply regarding putting more of the bonus into the 401k. Nothing to do with getting more money out of the company via their DC which is not possible, correct? Thats how I have understood it anyway. The only thing this would help is to reduce tax obligations on the bonus based on how much you put into traditional 401k, correct? It would simply be taxed later when you take it out.
#4639
Gets Weekends Off
Joined APC: Apr 2017
Posts: 465
You cannot put any of the bonus into your 401k. Those are IRS rules based on the structure of the bonus. It doesn't really matter as long as you max your 401k in 2019 (19 grand under 50). Your tax burden will be the same at the end of the year. Who knows what the rules will be when I withdraw from my 401k years in the future? Also, it was not possible to get more money out of the company by increasing your contribution % on the first two 2019 contributions.That was a misunderstanding of appendix A LOA 1 Language. I hope that helps.
NOTHING from your bonus check can go into your 401k. Up to 90% of your regular checks can go into 401k. You can look at your bonus check as your regular pay and your regular pay as your bonus as a way to put more dollars into 401k now. It's all just numbers, and when and where you are putting them.
There is nothing you can do to get more from the company, the tax man will get his either now or later.
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