2019 401k Questions
Reviving this old thread for 2019.
Can someone explain to me the tax treatment for the defined contribution plan/B Fund/401(k)? The 2019 limit for a 401(k) is $19,000/yr and obviously most airline pilots will easily eclipse this. My main three questions are this: 1) What is the proper term for the account where these automatically contributed retirement funds go? 2) Is the account tax-sheltered like a 401(k) or considered after-tax? 3) If the account is a 401(k), can it all be treated as pre-tax money even if it exceeds the $19K annual limit set by the IRS? |
Originally Posted by Techsan15
(Post 2730100)
Reviving this old thread for 2019.
Can someone explain to me the tax treatment for the defined contribution plan/B Fund/401(k)? The 2019 limit for a 401(k) is $19,000/yr and obviously most airline pilots will easily eclipse this. My main three questions are this: 1) What is the proper term for the account where these automatically contributed retirement funds go? 2) Is the account tax-sheltered like a 401(k) or considered after-tax? 3) If the account is a 401(k), can it all be treated as pre-tax money even if it exceeds the $19K annual limit set by the IRS? Age 50+ can do "catch up" employee deferrals of an additional $6K above the $19K. There's a total limit of $55k for all employee + employer contributions. Most or all better majors today do a 15-16% contribution (no match required). So many major airline pilots max out the 401k total cap just from the employer DC. |
Why not just start a new thread?
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Originally Posted by rickair7777
(Post 2730193)
Most or all better majors today do a 15-16% contribution (no match required). So many major airline pilots max out the 401k total cap just from the employer DC. |
Originally Posted by Techsan15
(Post 2730640)
What happens to the extra contributions above 55K? Is that simply the max the company will contribute or does it get distributed to an after-tax account instead?
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Originally Posted by Techsan15
(Post 2730640)
What happens to the extra contributions above 55K? Is that simply the max the company will contribute or does it get distributed to an after-tax account instead?
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Can I invest my Roth 401K money into the same mutual funds that the company puts my traditional 401k money in, or do I need to choose different funds?
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Originally Posted by DWC CAP10 USAF
(Post 2732892)
Can I invest my Roth 401K money into the same mutual funds that the company puts my traditional 401k money in, or do I need to choose different funds?
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Originally Posted by Vital Signs
(Post 2735307)
At my company it is in the same funds and there should be a web page that shows the breakdown of 401k vs roth401k contributions.
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