401K question
 

Can any tax experts answer this question? If the max 401K nontaxed contribution is $14k per individual/year in 2005, does that mean your contribution as well as the company's matching cannot excede $14K? And what if the profit sharing plunked into the 401K is (pick a number) $5K. Then does that mean the individual can then only add another $9K to reach the $14K max?

Appreciate the help.

No. The current combined total contribution is over $40K. (edit: "In 2005, according to the Economic Growth and Tax Relief Reconciliation Act of 2001, the maximum is the lesser of 100% of compensation or $42,000. ")

Caveat - if you make over $95K you are a "highly comensated employee" and may not be able to make a max contribution. (This should be easy to avoid: just bid F/O or the 190. :D )

401k
 

Bulechunks,

If you are a Jet Blue employee drop payroll an email and ask them the question.

What question???? :D

If you meant to ask me (Banger) I did check and Bluechunks was right on.

You r correct. I meant Banger not Bluechunks

The $14k cap is only your own personal contribution deducted from your paycheck. Any match, including profit sharing, is above and beyond that.

Cool. Thanks............

For year 2003 (17% profit sharing), we had some Captains get their profit sharing split between their 401K and a check for cash. With their normal 401K contributions, JB 3% matching and profit sharing they exceeded the max contirbution as listed above. So JB had to give these individuals some/most of their profit sharing in a check (minus deductions and taxes).

FNG