401K question
09-21-2005, 08:23 AM
#1
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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.
Appreciate the help.
09-21-2005, 08:32 AM
#2
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Joined APC: Sep 2005
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Posts: 95
Originally Posted by banger
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?
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.
)
Last edited by bluechunks; 09-21-2005 at 08:57 AM.
401k
09-22-2005, 06:57 AM
#9
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Joined APC: Mar 2005
Position: A320 FO
Posts: 157
Originally Posted by bluechunks
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. )
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.
)FNG
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