2019 401k Questions
#1
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?
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?
#2
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?
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.
#4
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?
#5
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#6
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At United, excess company contributions to the Pilot’s DC fund go into the individuals RHA account. This can be significant.
#8
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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