|
Originally Posted by 744ButtonPusher
(Post 3679229)
Keep in mind that IF the retro is allowed to be contributed to your 401k it would still be subject to the individual contribution and/or 415c limits so if you are someone who already maxes out your stuff , you won’t be Able to contribute any of your retro.
note: the limits considered would be for the respective tax year, so 2020 retro for 2020 limits ect not the current year. |
Originally Posted by KnightNight
(Post 3679107)
But those can all be sub categories to being a CA or being an FO. Makes sense to me 🤷🏻♂️
|
Originally Posted by 744ButtonPusher
(Post 3679229)
Keep in mind that IF the retro is allowed to be contributed to your 401k it would still be subject to the individual contribution and/or 415c limits so if you are someone who already maxes out your stuff , you won’t be Able to contribute any of your retro.
note: the limits considered would be for the respective tax year, so 2020 retro for 2020 limits ect not the current year. The only thing you have to factor in is that the 2023 portion of the signing bonus is pensionable. So, if you normally plan on a certain amount to meet the 415c limit, you will have to make an adjustment. |
Originally Posted by CQKSNT
(Post 3679394)
This makes no sense at all.
|
Originally Posted by ThumbsUp
(Post 3679490)
If it’s like Delta’s, it’s not back pay, but current year earnings, so taxable for the year in which it is paid and only eligible as elective contribution like any other pay.
The only thing you have to factor in is that the 2023 portion of the signing bonus is pensionable. So, if you normally plan on a certain amount to meet the 415c limit, you will have to make an adjustment. what happens if you maxed everything ? your 16% contributions from retro pay for 2023 goes to VEBA account ? that’s what I think will happen if we get our retro by 12/1/2023 |
Originally Posted by Sniper66
(Post 3679538)
what happens if you maxed everything ?
your 16% contributions from retro pay for 2023 goes to VEBA account ? that’s what I think will happen if we get our retro by 12/1/2023 " "Cap RHA spillage due to 401(a)(17) at $10,000, above that amount paid as cash. Only applies until Market-Based Cash Balance Plan (MBCBP) is started". We'll know when the TA is released. |
Originally Posted by AbjectFutility
(Post 3679552)
There's language in the AIP that might apply to this situation.
" "Cap RHA spillage due to 401(a)(17) at $10,000, above that amount paid as cash. Only applies until Market-Based Cash Balance Plan (MBCBP) is started". We'll know when the TA is released. The MPCBP wont be done in time for the retro--if you've already maxxed, either by hitting the 415c limit or already earning $330k+, it will be spilled into the VEBA. That assumes the retro will be paid this year, which is probably pretty likely. |
Originally Posted by ThumbsUp
(Post 3679490)
If it’s like Delta’s, it’s not back pay, but current year earnings, so taxable for the year in which it is paid and only eligible as elective contribution like any other pay.
The only thing you have to factor in is that the 2023 portion of the signing bonus is pensionable. So, if you normally plan on a certain amount to meet the 415c limit, you will have to make an adjustment. |
Originally Posted by 744ButtonPusher
(Post 3679613)
i guess that will be in the language details. Retro payments are almost always taxable in the current year but if any pensionable amounts are allowed, the IRS requires that those funds be allocated based on the years for which they’re they based on. If no pensionable amounts for 20,21,22 then it’s a non issue
|
Originally Posted by ThumbsUp
(Post 3679589)
The MPCBP wont be done in time for the retro--if you've already maxxed, either by hitting the 415c limit or already earning $330k+, it will be spilled into the VEBA. That assumes the retro will be paid this year, which is probably pretty likely.
|
| All times are GMT -8. The time now is 04:35 AM. |
Website Copyright © 2026 MH Sub I, LLC dba Internet Brands