Any "Latest & Greatest about Delta?" Part 2
11-03-2023, 06:15 AM
#3271
Gets Weekends Off
Joined APC: May 2015
Position: A350 Both
Posts: 7,292
it depends if you are trying to keep money out of spill cash territory like I am. I didn’t opt out of MBCBP but for now I want as little as possible to go into that account. So if I think I’ll make 345k or more, I would just do 3%
I’m 99% sure you can roth company 401k contributions now. That was a change about a year ago IIRC
I’m 99% sure you can roth company 401k contributions now. That was a change about a year ago IIRC
11-03-2023, 06:23 AM
#3272
Gets Weekends Off
Joined APC: May 2015
Position: A350 Both
Posts: 7,292
It's just philosophical imho. I preferred to have that money working as soon as possible in the tax sheltered accounts so all of my profit sharing went into those accounts. That is a much better option now with the MBCBP as the .gov doesn't get a cut until you take it out. (And alpa doesn't get any either which doesn't break my heart.)
11-03-2023, 06:57 AM
#3273
Rerouted On Weekends
Joined APC: Oct 2015
Position: 717A
Posts: 2,937
I'll take a stab at it. Prior to the MBCBP, and income earned after you hit all the 415(c) limits was paid at regular income and was taxed as such. Some people were averse to that taxation so they tried to hit the limit at year's end in order to avoid that. That doesn't apply now as the MBCBP is not taxed at regular rates and is sheltered. The other philosophy was to fill up to those limits early on in order to get the time/value of money early on and have all that tax sheltered money working as soon as possible. Think of it as dollar cost averaging versus making a big investment early on.
It's just philosophical imho. I preferred to have that money working as soon as possible in the tax sheltered accounts so all of my profit sharing went into those accounts. That is a much better option now with the MBCBP as the .gov doesn't get a cut until you take it out. (And alpa doesn't get any either which doesn't break my heart.)
It's just philosophical imho. I preferred to have that money working as soon as possible in the tax sheltered accounts so all of my profit sharing went into those accounts. That is a much better option now with the MBCBP as the .gov doesn't get a cut until you take it out. (And alpa doesn't get any either which doesn't break my heart.)
11-03-2023, 07:52 AM
#3274
Gets Weekends Off
Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,455
3% is the easy button as GF said somewhere. That takes the company 17% up to 20% which maxes out total contributions at the IRS limit while minimizing personal contributions to get there. The 17% above $345000 will go into the MBCBP (unless you opted out) and is tax differed. My PS on valentines day will go to HSA and any other tax advantaged account like IRA rolled to a roth, 529s, 50+ catchup etc. for tax efficiency.
11-03-2023, 08:17 AM
#3275
Gets Weekends Off
Joined APC: May 2015
Position: A350 Both
Posts: 7,292
3% is the easy button as GF said somewhere. That takes the company 17% up to 20% which maxes out total contributions at the IRS limit while minimizing personal contributions to get there. The 17% above $345000 will go into the MBCBP (unless you opted out) and is tax differed. My PS on valentines day will go to HSA and any other tax advantaged account like IRA rolled to a roth, 529s, 50+ catchup etc. for tax efficiency.
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