PSA info
11-25-2016 | 02:15 PM
#5191
Roll’n Thunder
Joined: Oct 2009
Posts: 5,148
Likes: 562
From: Pilot
11-25-2016 | 03:04 PM
#5192
Line Holder
Joined: Jul 2008
Posts: 438
Likes: 5
You can, however, contribute up to 60% of your gross income into your 401k account. With the new 2-year pay starting from day 1 scheme, even a brand new First Officer can max their 401k in their second year...and come reasonably close in their first year if they start the job in January/February.
11-25-2016 | 03:18 PM
#5193
Gets Weekends Off
Joined: Oct 2015
Posts: 3,199
Likes: 42
From: Gear slinger
You can, however, contribute up to 60% of your gross income into your 401k account. With the new 2-year pay starting from day 1 scheme, even a brand new First Officer can max their 401k in their second year...and come reasonably close in their first year if they start the job in January/February.
11-25-2016 | 03:46 PM
#5194
Roll’n Thunder
Joined: Oct 2009
Posts: 5,148
Likes: 562
From: Pilot
11-25-2016 | 03:50 PM
#5195
Gets Weekends Off
Joined: Feb 2007
Posts: 2,610
Likes: 15
You can, however, contribute up to 60% of your gross income into your 401k account. With the new 2-year pay starting from day 1 scheme, even a brand new First Officer can max their 401k in their second year...and come reasonably close in their first year if they start the job in January/February.
If you want to go crazy on retirement savings (which you should do if you can afford it) max out the 401(k) match (because free money is free money, then max out a Roth IRA ($5,500 annually for single filers), then if you still want to go crazy consider a conventional IRA over the 401(k). Depending on your brokerage you should have a lot more investment options available to you rather than just leaving it in the 401(k).
11-25-2016 | 04:02 PM
#5196
Gets Weekends Off
Joined: Oct 2015
Posts: 3,199
Likes: 42
From: Gear slinger
Eh, don't do this.
If you want to go crazy on retirement savings (which you should do if you can afford it) max out the 401(k) match (because free money is free money, then max out a Roth IRA ($5,500 annually for single filers), then if you still want to go crazy consider a conventional IRA over the 401(k). Depending on your brokerage you should have a lot more investment options available to you rather than just leaving it in the 401(k).
If you want to go crazy on retirement savings (which you should do if you can afford it) max out the 401(k) match (because free money is free money, then max out a Roth IRA ($5,500 annually for single filers), then if you still want to go crazy consider a conventional IRA over the 401(k). Depending on your brokerage you should have a lot more investment options available to you rather than just leaving it in the 401(k).
Agree your tax bracket is low enough early on that you'd benefit from the Roth IRA, then doing as much as you can to max the 401k.
Does PSA have a Roth 401K option as well?
There are limitations where Roth IRA eligibility phases out and income levels where traditional IRAs aren't tax deductible anymore so in those cases it pays to max the 401k first.
As for having more options... sometimes less is more. A limited and balanced 401k selection helps focus individuals on investing in the market overall vs speculating in niche segments.
11-25-2016 | 04:57 PM
#5198
Gets Weekends Off
Joined: Feb 2007
Posts: 2,610
Likes: 15
Pretty sure you're only allowed to do an IRA contribution for $5500 total for the year (unless you're older), whether it's a Roth, traditional or both.
Agree your tax bracket is low enough early on that you'd benefit from the Roth IRA, then doing as much as you can to max the 401k.
Does PSA have a Roth 401K option as well?
There are limitations where Roth IRA eligibility phases out and income levels where traditional IRAs aren't tax deductible anymore so in those cases it pays to max the 401k first.
As for having more options... sometimes less is more. A limited and balanced 401k selection helps focus individuals on investing in the market overall vs speculating in niche segments.
Agree your tax bracket is low enough early on that you'd benefit from the Roth IRA, then doing as much as you can to max the 401k.
Does PSA have a Roth 401K option as well?
There are limitations where Roth IRA eligibility phases out and income levels where traditional IRAs aren't tax deductible anymore so in those cases it pays to max the 401k first.
As for having more options... sometimes less is more. A limited and balanced 401k selection helps focus individuals on investing in the market overall vs speculating in niche segments.
And yes, there is a Roth 401(k).
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