Profit Sharing Predictions
 

Ok, UAL reports earnings on January 19th. With the 4th QTR behind us, anybody want to throw out an educated guess? My two cents worth is about 15% less than last year's PS Check.

For an apples to apples comparison...what percent of W2 is your guess? My pay rate went up considerably, so last years 13% would be worth more this year.

I'm guessing 13.2% of W2. Slightly higher than last year.

I'm thinking a slightly lower percentage than last year.

Not being snitty just saving myself the trouble of reposting my previous data pictures taken from the 10k. If you look up my posts the data is in there somewhere.

Answer: As of the close of Q3, profits EXCLUDING unusual charges were slightly ahead of last year while revenues were slightly lower meaning the percentage so far was slightly higher than last year. Expectations for Q4 are also slightly higher than last year.

Net net: my SWAG is 14%.

Did they give us the option of putting some or all of the profit sharing into the PRAP last year?

15.4% is my guess

Yes.......

Employees participating in the U.S. Profit Sharing Plan have the option of contributing a portion of their profit sharing payment to their company-sponsored retirement savings account (e.g., 401(k) Plan, PRAP or UK Group Stakeholder Plan). Between Jan. 10 and Feb. 8 at midnight Central time, employees may make a special one-time election to contribute a portion of their Profit Sharing award payment to their company-sponsored retirement savings account.

To make these elections, visit Flying Together > Employee Services > My Info > Benefits/Programs> Profit Sharing 401k Election. Employees who do not make a special one-time election will not have any contributions made to their company-sponsored retirement savings account.

I made the mistake of putting a lot of mine in the PRAP last year. I found out after that it doesn't go in completely "before tax". I don't remember the details, but it is a different category of income, and is treated different under tax law.

So if you put it in your PRAP, you will still get taxed, and will fill up your limit with "POST" tax money instead of pre-tax money. Seems to me the wrong way to go.

I wish the union would have advised us of this. I cost me a few thou of tax.

Thanks for the heads up .. I'm hoping the MEC sends out info on this in the near future as I'm trying to figure out the tax ramifications. I "believe" that our personal contributions (separate from the company's) are subject to the 401k limits of 18,000 / 24,000(over50), so a portion of it should go in pre-tax.