Upgrade times
05-10-2021 | 01:47 AM
#181
Thread Starter
Gets Weekend Reserve
Joined: Jul 2007
Posts: 4,258
Likes: 240
From: B737CA
Good question, but better directed at the IRS.
We do, however, have a collective choice in the percentage of PS that gets deposited into qualified retirement account.
Personally, I’ve always voted to put it all in the retirement account because that ensures my retirement contribution is maxed out for the year. But that’s me.
05-10-2021 | 03:41 AM
#182
Gets Weekends Off
Joined: Nov 2012
Posts: 2,030
Likes: 0
They claim IRS rules, but why do they allow it at other airlines and not here? The first year or two it would’ve been financially helpful to the transition coming here. Now I max my contributions to have the excess cash at the end of the year for back door Roth, taxes, Xmas, vaca, whatever.
In hindsight we managed without the extra cash and got past the effects of the pay cut. But most new guys now aren’t double-dipping military as new hires to help through those first couple years.
In hindsight we managed without the extra cash and got past the effects of the pay cut. But most new guys now aren’t double-dipping military as new hires to help through those first couple years.
05-10-2021 | 03:48 AM
#183
weekends off? Nope...
Joined: Apr 2014
Posts: 2,407
Likes: 133
05-10-2021 | 08:41 AM
#185
Gets Weekends Off
Joined: Nov 2012
Posts: 2,030
Likes: 0
Originally Posted by at6d;[url=tel:3232988
3232988[/url]]I thought the newfangled tech they just put in was supposed to fix the money issue?
That could be an excuse to simply not accept foreign currency because we can fill airplanes without it.
05-10-2021 | 11:10 AM
#187
Gets Weekends Off
Joined: Dec 2020
Posts: 128
Likes: 0
The IRS could care less where it goes. They tax you now or they tax you later. It’s just set up differently. In this case it’s for all purposes a “ employer discretionary contribution” plan. Nothing special just another form of retirement account. It actually helps reduce the companies and the employees immediate tax burden, but like I said before the IRS doesn’t care as they will wait it out.
Only reason it’s gets placed into the account is because the senior guys are in higher tax brackets and want to defer for as long as possible.
Only reason it’s gets placed into the account is because the senior guys are in higher tax brackets and want to defer for as long as possible.
05-10-2021 | 12:23 PM
#188
On Reserve
Joined: Feb 2007
Posts: 187
Likes: 0
If you are talking about profit sharing, the high earners can’t defer their profit sharing. They get it all in cash each year. I haven’t had any money deposited into my profit sharing account for the last 5 years. And it gets taxed huge when it pays in March.
05-10-2021 | 12:31 PM
#189
Gets Weekends Off
Joined: Oct 2005
Posts: 955
Likes: 0
From: 737 Right
I would argue that this is an even more important benefit for those on FO pay. For CAs, the NEC and profit sharing (in a normal year) will max-out their qualified limits. For those of us who need to make employee contributions to max-out, it sure helps that the profit sharing is in the "employer contribution" bucket. As such, we can shield a proportionately higher amount of our W-2 income from the immediate tax burden.
05-10-2021 | 12:48 PM
#190
Thread Starter
Gets Weekend Reserve
Joined: Jul 2007
Posts: 4,258
Likes: 240
From: B737CA
Flying with plenty of senior dudes who would use their PS excess as a paycheck while they'd max out their individual 401k contribution by the end of 1st quarter, and then they'd be maxing out their Top Hat right to 50k limit. Makes sense... but having lost my A-plan in a bankruptcy and being entitled to a whopping $200-something bucks a month when I retire, I'm not sure how much I'd trust Top Hat.
Thread
Thread Starter
Forum
Replies
Last Post
