An excellent point. 9.87% YTD on mine. Fall 2018 I killed myself saving and went all in Jan this year. It sucked but it was well worth it. At my age, I have to in order to amass any kind of lump.

 

what is the income level where one needs the RHA to capture the company money if they do as y'all have said and max out 401k early, get max company B fund contribution? i.e. at what income level/years of service are you leaving company money on the table if you max out everything?

 

english please

 

You are never leaving company money on the table. The 16% must be paid out. Once the 403b limit is reached ($56k, $62k at 50), the 16% goes to RHA. Any income level can max out the 401k/B plan early, but higher income levels can obviously max out the 403b earlier, but all income levels can max it out by mid year if they can put 100% of UAL pay into it.

 

I hope this isnt a dumb question. The 403b limits have an income limit of 280k (not positive of exact #). Ive never been in a position of reaching that amount. If we go over 280k...does the companies 16% contribution stop? So those pilots making over 280k, are they getting the 16% on amounts over 280k?? I assume they don’t but I would love to be wrong.

 

You never leave money on the table, it is just a matter of where it goes. We are paid 16% on top of our salary that goes into:

1st: the 401K
if the 401 k has reached its limit of 56K (61K if over 50) then:
2nd: RHA
If you go over the max amount of earning for consideration into a retirement account (280K) then
3rd: Cash in your check as taxable income

If you as a pilot contribute your max before tax contribution of 19K (25K if over 50) before the company has contributed the 37K necessary to get to the limit of 56K (61K if over 50) then all the remaining monies you have in salary after that point will result in the 16% going into your RHA, until your salaray hits 280K. The math on that comes out to a need to complete your individual contributions to your 401K before you make about 230K for the year. Then the 16% on the next 50K of earnings (280-230) will go into your RHA, or about 8K. Then if you are still earning money, the 16% for the remaining salary will come in your paycheck.

If you don't contribute any money yourself at all, then the 16% won't hit the Max (56K) before you hit the 280K salary mark. At that point the 16% would then just come as money in your check for all salary above 280.

 

Yes, they get it. You never don’t get the 16%. It's sometimes convoluted, but it has to go somewhere.

From "The Benefits Book"

https://www.alpa.org/ual/Committees/...ance-resources

 

Is GoCats67 above explanation correct about the 16% showing up as
Pay eventually? Is the RHA spillage limited by that 280k income restriction?

(Disregard....I went back and read his post again and I think the info was in there. ). I will have to go find that Benefits Book. I can’t honestly say I’ve ever looked at it.

Thank you for the info. These are nice problems to have!

 

My understanding is that the 16% never goes into a paycheck directly. It either goes into 401k or RHA.

 

Spaaks, I think what you're asking is, until you make $231,250 don't worry about it. All of the company's 16% goes in to the 401k and you will not hit the limit.

-$56,000 limit ($19k from pilot + $37k from company)
-$231,250 x .16 = $37,000

The income level required to obtain $37k from the company at 16% is $231,250.



someone please check my math