PRAP
11-27-2024 | 09:49 AM
#151
Gets Weekends Off
Joined: Oct 2015
Posts: 3,195
Likes: 42
From: Gear slinger
Even then cash over cap is the best situation long term (13000@6% < [email protected]% over 20+ years). Pilot groups should be pushing for abolishing MBCBPs and RHAs.
Short of that, MBCBPs > RHAs for the inheritability aspect.
11-27-2024 | 10:03 AM
#152
Line Holder
Joined: Dec 2023
Posts: 451
Likes: 5
11-27-2024 | 11:01 AM
#153
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Joined: May 2015
Posts: 1,200
Likes: 33
From: 777 CA
Make your PRAP more agressive... bud they give us 15 options to choose from and the most aggressive is the "total stock market".
The reduced cap on PRAP company contributions is crap for people in the younger years of their career. Currently, I can contribue $10850 of my own money and have 70k of my retirement in the stronger PRAP. If i contribute $10850 now I get $57k into my PRAP and $13k into essentially a bond fund. So make the difference up I need to contribue the $22k or whatever the IRS limit is. So more money out of my pocket to acheive the same thing for a minimal return on investment. At my age I'd rather have the extra $10k in liquidity than put it into a bond fund.
At least the spill into the HRA/AHA is useful to use and it's also tax leveraged.
The reduced cap on PRAP company contributions is crap for people in the younger years of their career. Currently, I can contribue $10850 of my own money and have 70k of my retirement in the stronger PRAP. If i contribute $10850 now I get $57k into my PRAP and $13k into essentially a bond fund. So make the difference up I need to contribue the $22k or whatever the IRS limit is. So more money out of my pocket to acheive the same thing for a minimal return on investment. At my age I'd rather have the extra $10k in liquidity than put it into a bond fund.
At least the spill into the HRA/AHA is useful to use and it's also tax leveraged.
As far as aggressive options, you do know you can sweep everything into your Schwab PCRA brokerage account and get pretty damn aggressive. You can even trade leveraged stuff. Hell Vanguard doesn't let you do that.
11-27-2024 | 11:10 AM
#154
On Reserve
Joined: Sep 2022
Posts: 164
Likes: 41
11-28-2024 | 01:15 PM
#156
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Joined: Aug 2021
Posts: 934
Likes: 22
HRA is tax free. Pre tax money, growth untaxed, and not taxed on withdrawals. I know some of you already have more than the recommended $315,000 needed for medical in retirement but my hunch is most don't.
As far as aggressive options, you do know you can sweep everything into your Schwab PCRA brokerage account and get pretty damn aggressive. You can even trade leveraged stuff. Hell Vanguard doesn't let you do that.
As far as aggressive options, you do know you can sweep everything into your Schwab PCRA brokerage account and get pretty damn aggressive. You can even trade leveraged stuff. Hell Vanguard doesn't let you do that.
I’m not in that income bracket yet but isn’t the max HRA spill 10,000$ a year? That would be a lot of years to get to $300,000
11-28-2024 | 01:27 PM
#157
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Joined: May 2015
Posts: 1,200
Likes: 33
From: 777 CA
Again this is all current and goes away if the LOA passes.
11-28-2024 | 03:13 PM
#159
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Joined: Feb 2024
Posts: 444
Likes: 88
If you fund the after tax 401K (immediately rolled into Roth) You can get a lot more RHA spill. Another option would be forfeited vacation. I ended up with over 45K HRA spill this year. I’m not super excited about that much since I have Tricare, but I’m trying to get as much Roth money as I can.
12-02-2024 | 10:23 AM
#160
On Reserve
Joined: Aug 2023
Posts: 67
Likes: 10
There's an option to spill after the 415(c) limit into the PCRA? Would this be taxable cash?
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