401K B Fund Contributions
10-08-2019 | 02:49 PM
#42
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From: A320 Captain
10-08-2019 | 04:46 PM
#44
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From: The GF of FUPM
Correct me if I'm wrong, but I thought only the company contribution could overflow into the RHA. Once a pilot reaches his individual max he can continue to push funds POST tax into the combined bucket. Once that bucket is full, only company money can flow into the RHA.
Said another way, a pilot maxing out early and then putting post-tax dollars into the combined bucket forces company money to flow into the RHA sooner in the year. Sorry if this ****es any RJ drivers off.
Said another way, a pilot maxing out early and then putting post-tax dollars into the combined bucket forces company money to flow into the RHA sooner in the year. Sorry if this ****es any RJ drivers off.
10-08-2019 | 04:57 PM
#45
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From: A320 Captain
Correct me if I'm wrong, but I thought only the company contribution could overflow into the RHA. Once a pilot reaches his individual max he can continue to push funds POST tax into the combined bucket. Once that bucket is full, only company money can flow into the RHA.
Said another way, a pilot maxing out early and then putting post-tax dollars into the combined bucket forces company money to flow into the RHA sooner in the year. Sorry if this ****es any RJ drivers off.
Said another way, a pilot maxing out early and then putting post-tax dollars into the combined bucket forces company money to flow into the RHA sooner in the year. Sorry if this ****es any RJ drivers off.
If I mis-stated any of this, I apologize. Andy is a great resource to talk to about this. I learned much of this from stuff he has posted over the years. Hes a bus cappy on west coast.
10-08-2019 | 05:36 PM
#47
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From: A320 Captain
Its sort of like a savings account to help pay for medical expenses later in life. Excess funds cant be paid out...this aint Delta.
10-08-2019 | 06:28 PM
#49
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From: The GF of FUPM
The most important aspect of the RHA is that you are using pre-tax dollars upfront to fund it and they become ZERO tax dollars later on when you use the money. Plus, as currently written the rules are quite lax with regard to what you use the funds for. Knee replacement? Use a Dr in Miami and you can buy tickets and hotels for the surgery. With, tax-free money.
Unless one already has a ton of money set aside, it's a no brainer. I think that ALPA's suggestion is for pilots to shoot for a $200K RHA at retirement, per couple. And when you factor in maxing out your 401 contributions early in the calendar year and then adding post-tax dollars to your retirement lump. It's tough, but it should pay off downrange.
Unless one already has a ton of money set aside, it's a no brainer. I think that ALPA's suggestion is for pilots to shoot for a $200K RHA at retirement, per couple. And when you factor in maxing out your 401 contributions early in the calendar year and then adding post-tax dollars to your retirement lump. It's tough, but it should pay off downrange.
10-08-2019 | 06:32 PM
#50
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The most important aspect of the RHA is that you are using pre-tax dollars upfront to fund it and they become ZERO tax dollars later on when you use the money.
Unless one already has a ton of money set aside, it's a no brainer. I think that ALPA's suggestion is for pilots to shoot for a $200K RHA at retirement, per couple. And when you factor in maxing out your 401 contributions early in the calendar year and then adding post-tax dollars to your retirement lump. It's tough, but it should pay off downrange.
Unless one already has a ton of money set aside, it's a no brainer. I think that ALPA's suggestion is for pilots to shoot for a $200K RHA at retirement, per couple. And when you factor in maxing out your 401 contributions early in the calendar year and then adding post-tax dollars to your retirement lump. It's tough, but it should pay off downrange.
Last edited by APC225; 10-08-2019 at 06:43 PM.
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