View Poll Results: LOA 24-05 MBCBP
YES
32
17.11%
NO
155
82.89%
Voters: 187. You may not vote on this poll
Loa 24-05 mbcbp poll
11-28-2024 | 02:49 PM
#11
Line Holder
Joined: Feb 2017
Posts: 1,631
Likes: 80
19/20 % would just hit the company PRAP contribution sooner in the year.
11-28-2024 | 04:31 PM
#12
Gets Weekends Off
Joined: Mar 2018
Posts: 3,633
Likes: 209
Not quite. In 2024, if you made more than 345k, you would hit the 415C limit right at 20%. So, you could max the PRAP in that case on company contributions alone.
11-29-2024 | 07:59 AM
#13
Line Holder
Joined: May 2017
Posts: 864
Likes: 37
From: Guppy
I've seen some concerning communications from people I would expect to know the details on these things that the cap on company contributions to the PRAP, which has been the sticking point for most of us, will be there irrespective of the passage or rejection of this LOA (once the MBCBP is implemented, that is).
This feels to me like an unintended consequence that, truthfully, derails the benefits we receive from it. Ultimately, it's a dollars and cents decision, but to say I'm disappointed in that (if true) is an understatement.
This feels to me like an unintended consequence that, truthfully, derails the benefits we receive from it. Ultimately, it's a dollars and cents decision, but to say I'm disappointed in that (if true) is an understatement.
11-29-2024 | 03:56 PM
#14
Line Holder
Joined: Feb 2017
Posts: 1,631
Likes: 80
the company contribution limit is $58650. So you still need to come out of pocket to hit the max. The Loa lowers it to $46,500. So you’d need to come out even more to hit the max.
11-29-2024 | 04:07 PM
#15
On Reserve
Joined: Dec 2022
Posts: 118
Likes: 0
11-29-2024 | 04:21 PM
#16
Gets Weekends Off
Joined: Mar 2018
Posts: 3,633
Likes: 209
Those numbers often change annually, so it’s a bit of a chase, but at some percentage, there is always a way to maximize it.
11-29-2024 | 09:05 PM
#17
Line Holder
Joined: Apr 2018
Posts: 399
Likes: 49
19-20% I chuckled a little .. the 18% we got this time was a stretch given the increased pay rates.
11-29-2024 | 09:14 PM
#18
Line Holder
Joined: Apr 2018
Posts: 399
Likes: 49
I've seen some concerning communications from people I would expect to know the details on these things that the cap on company contributions to the PRAP, which has been the sticking point for most of us, will be there irrespective of the passage or rejection of this LOA (once the MBCBP is implemented, that is).
This feels to me like an unintended consequence that, truthfully, derails the benefits we receive from it. Ultimately, it's a dollars and cents decision, but to say I'm disappointed in that (if true) is an understatement.
This feels to me like an unintended consequence that, truthfully, derails the benefits we receive from it. Ultimately, it's a dollars and cents decision, but to say I'm disappointed in that (if true) is an understatement.
not only does will there need to be a favorable determination letter from the IRS for the CBP , but we will also need to request a PLR (private letter ruling) on the contingent benefit rule on the PRAP. A favorable determination letter for the CPB only means that they are approving our plan, not that there is not a conflict with other plans.
The contingent benefit rule is a PRAP (401k) problme and therefore a separate PLR is necessary from the IRS to re-evaluate the PRAP with the new CBP.. however (strangely) they are under no obligation to respond or issue a PLR.
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