B Plan, IRS Code
#1

Can none tell me what IRS section covers the typical “B” plan, which is a defined contribution plan?
My son works for a company that is making a lot and looking for ways to save more, tax sheltered..like our B plans.
My son works for a company that is making a lot and looking for ways to save more, tax sheltered..like our B plans.

#2
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Joined APC: Jul 2015
Position: MD-88 FO
Posts: 1,485
#3
#4
Gets Weekends Off
Joined APC: Jul 2015
Position: MD-88 FO
Posts: 1,485

Personal contributions are limited to 20k-ish. The company can contribute up to the max 415(c) limit every year which is $66k for 2023. But the plan is still a 401(k). The two contributions (personal and company) can’t total more than that $66k. That’s where a lot of higher earners get into a situation where they max out and are looking for some sort of additional vehicle like a tax deferred MBCBP to put the excess money.
#5

Personal contributions are limited to 20k-ish. The company can contribute up to the max 415(c) limit every year which is $66k for 2023. But the plan is still a 401(k). The two contributions (personal and company) can’t total more than that $66k. That’s where a lot of higher earners get into a situation where they max out and are looking for some sort of additional vehicle like a tax deferred MBCBP to put the excess money.
415(c).. Yes! That’s it. Thank you. Somewhere in the brain fog I had forgotten.
Is the MBCNP allowed in addition to a 401(k)? What are the limits?
Appreciate it.
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