Profit Sharing
02-14-2013 | 11:24 AM
#23
Line Holder
Joined: Dec 2010
Posts: 650
Likes: 5
From: 787 Capt.
02-14-2013 | 01:55 PM
#24
Keep Calm Chive ON
Joined: Feb 2008
Posts: 2,086
Likes: 0
From: Boeing's Plastic Jet Button Pusher - 787
Look into it and let me know what you find out.
02-14-2013 | 05:18 PM
#25
Banned
Joined: Oct 2010
Posts: 690
Likes: 0
From: IAH 737 CA
Just out of curiosity, was the 401k in which you were deferring to, was it a "ROTH 401k"? If so, 'front side' taxes make sense in that case. Outside of that, I'd have not a clue as to why they pulled the taxes (Fed) on the front side when you elected 100% deferment to the "vanilla/traditional" 401k.
Look into it and let me know what you find out.
Look into it and let me know what you find out.
Nope. Pure 401K. When you elect 100% into my 401k, you would think that it would mean 100%, less union dues. Called crew pay and they said talk to payroll. Here I was thinking they were all in the same room and department. I just found somewhat or part of an answer. Still doesn't explain the federal withholding though.
I want to contribute 100% of my 2012 Profit Sharing, on a Before-Tax basis, to my company-sponsored retirement savings account.
EXPLINATION
Before-Tax Contributions
Generally, you may contribute from 1% up to 100% of your Profit Sharing check to your company-sponsored retirement savings account on a before-tax basis. For U.S. retirement savings accounts, you may make contributions up to the elective deferral limit – for 2013, $17,500 or $23,000 for someone age 50 or older. Employee contributions from profit sharing are not eligible for subsidiary United matching contributions. Your before-tax contributions are deducted before federal and certain state income withholding taxes are computed (not all states are included). However, these contributions will be subject to Social Security (6.2%), Medicare (1.45%), and applicable state and local tax withholdings.
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