Go Back   Airline Pilot Central Forums - Find your next job as a Pilot > >
Money Talk Your hard-earned money
 

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Reply
 
Thread Tools Search this Thread Display Modes
Old 01-18-2018, 04:03 PM   #1  
On Reserve
Thread Starter
 
Joined APC: Jan 2017
Posts: 13
Default 401k matching limits

I see a lot of people mention they will get the full $36000 for 401k match at their airline ($54000 max irs limit minus $18000 self contribution leaving $36000 for the maximum company match). I inquired at my airline and they calculate at max annual compensation of $270000 for a maximum match of $27000 even though I earned well north of $270000.
Are there any tax experts that can explain why airline A will match up to $36000 while airline B caps it at $27000?
I read this irs page about it but its still clear as mud to me.

https://www.irs.gov/retirement-plans...e-annual-limit

Thanks!
chickenorbeef is offline   Reply With Quote
Old 01-18-2018, 05:09 PM   #2  
Line Holder
 
Joined APC: Jan 2013
Position: DL
Posts: 92
Default

Iím sure some of it has to do with your contractual rules (like if you get 10% DC and it stops at 270k) however here is how it works at Delta and how the 36k happens. Basically, Iím assuming your company (UPS ?) stops at 10% of 270. Simple as that.

We get 16% up to an unlimited amount of income (the 16% never stops). What does limit you is the IRS limits for tax free. So letís say you made 500k. You would get 80K but only the portion that the IRS letís be tax free would be tax free and the rest would be income subject to tax. There are 2 limits and 270k is one where they stop being tax free and 54k is the max combined too. So for a Delta guy you could go about it a couple ways. 1. Put in 18k and let the company put in up to 36k or 2. Put in 43.2k (.16 x 54) and you personally put in 10.8.

Make sense?

Last edited by Bobman80; 01-18-2018 at 05:23 PM.
Bobman80 is offline   Reply With Quote
Old 01-18-2018, 05:46 PM   #3  
On Reserve
Thread Starter
 
Joined APC: Jan 2017
Posts: 13
Default

Thanks Bob, that makes more sense. Well there goes $9000 Iíll never get....a year! 😩
chickenorbeef is offline   Reply With Quote
Old 01-23-2018, 07:58 AM   #4  
Gets Weekends Off
 
Joined APC: Feb 2008
Posts: 12,544
Default

Quote:
Originally Posted by chickenorbeef View Post
Thanks Bob, that makes more sense. Well there goes $9000 Iíll never get....a year! 😩
Make sure you understand your contract. You may be due that money anyway. As mentioned at Delta when you fill up your 415C bucket the 16% is still paid however as ordinary income. The 270K number is a IRS limit that stops you from adding tax free money on your own to your 401K. Make sure your contribution percentage is enough to hit the limit before you reach 270k in pay. If the 270k is written into your contract as the end of contributions that year your screwed.
sailingfun is offline   Reply With Quote
 
 
 

 
Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Related Topics
Thread Thread Starter Forum Replies Last Post
401(k) payroll error BMEP100 United 4 05-31-2014 05:41 PM
401k management mike734 Money Talk 12 10-18-2013 08:13 AM
401(K) and RMDs Flyinhigh Money Talk 3 07-31-2013 06:54 AM
Roth IRA vs. 401k ToiletDuck Money Talk 30 01-07-2007 05:54 AM
401k max becomes $15,500 on Jan 1 Tech Maven Money Talk 9 12-28-2006 04:26 PM


All times are GMT -8. The time now is 12:44 PM.


vBulletin® v3.9.3.5, Copyright ©2000-2019, MH Sub I, LLC dba vBulletin
User Alert System provided by Advanced User Tagging v3.3.0 (Lite) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Website Copyright ©2000 - 2017 MH Sub I, LLC dba Internet Brands

Search Engine Optimization by vBSEO 3.6.1