Quote:
Originally Posted by JustInFacts
The earnings limit for 2023 is $330,000. 9% of that is $29,700. Total IRS contribution limit is $66,000. That leaves $36,300 available for the pilot to contribute. So, show how you will lose some of your 9% DC contribution.
Let’s say you are on track to make exactly 250,000, which is actually much much more than many of our FX pilots actually make.
You have set up your contributions so that on you’ve already contributed $42,500 of your own money. You’re expecting the company to contribute their 9% of your last check and then your contribution will bring it up to the $66,000 limit.
seems tricky but doable.
Except it’s not. Because the company will take the contribution from your check first before they put in their 9%.
if we had cash over cap, you wouldn’t lose any money in that scenario.
nor would you lose money if you hit that 43.5k number and went beyond it earlier in the year.
not having cash over cap is an issue for everyone, not just the guys who make over 330k, and not having cash over cap would have burned us all pretty hard with TA1.0