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Replies: 36
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Oculus Spirit [81607]
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Oh neat, my yearly reminder of how crappy my company's
Dec 28, 2020, 11:56 AM
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401k benefits are...
Morning,
I hope you had a nice holiday this past weekend.
Please read carefully as this email notification changes your 401(k) account.
You may or may not be aware, but the IRS has rules and limitations on 401(k) qualified plans for Highly Compensated Employees (HCE’s). You have been designated as someone who meets those limitations. HCE’s are classified as anyone making $130,000 or more in total comp – salary, plus any of these that may apply to you – stipend or bonus. It is all compensation.
Because of those limitations, if you have elected to defer more than 11% in your 401(k) it will be reduced to 11% (I will take care of making that change with [retirement company] and in our system). If you are contributing less than 11%, there will be no change made to your record.
If you are 50 years of age or older, or will be 50 years of age in 2021 and participating in our 401K profit sharing plan, the IRS allows you to make additional 401(K) “catch-up” of $6,500 contribution to the Plan. A form is attached if you would like to get this started. An email copy back to me is fine. I know many of you have already sent me this form to me and I’ve processed those, but wanted to share with others who may qualify.
Thank you.
Corporate Director of Benefits
My response to them:
Once again I must express my incredible dismay at our 401k benefits that are so low it doesn’t raise the 11% threshold. All employees making between $130,000 and $177,272 cannot contribute to the IRS limit.
[Company]'s 2% match is not competitive, I wish you’d push to change that, and it would help solve this issue as well.
Let's see if I #### off the director of benefits saying that our benefits suck.
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Heisman Winner [105381]
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Why create the acronym for HCEs and then have to
Dec 28, 2020, 12:06 PM
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explain? Seems easier to word that email as, THOSE OF YOU MAKING GREATER THAN $130k...WE ARE GOING TO FUCK YOU UP.
Nice though, humble brag and all. I cannot contribute the max at my workplace either, but that is cause kids, etc. Hopefully they just take care of me or I die early.
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Oculus Spirit [81607]
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I tried to find a way to unbrag it, because I am once again
Dec 28, 2020, 12:28 PM
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genuinely angry at this.
Seriously, everyone between $130k & $172k ($19,500/11%) are simply screwed by this.
I've only been in a position to max out my 401k the past three years (divorce recovery), and last year I was hit with this cap. The most frustrating thing is my salary isn't $130k, I only made it because I worked over 2,500 hours this year...so what a nice award for my hard work.
What are my other retirement saving options? I opened an IRA and put $6k (the limit?) into it.
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Heisman Winner [105381]
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I read somewhere that you should THANK GUNS AND GOLD
Dec 28, 2020, 12:38 PM
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as a retirement investment.
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Orange Blooded [3924]
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Lot o points [163006]
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Seriously, it used to be a 3% company contribution
Dec 28, 2020, 12:07 PM
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was a "safe harbor" that means others can max out vs. limiting as your company is doing.
I have not kept up with the 401K rules, but I think the safe harbor is still around.
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Oculus Spirit [81607]
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I think it's 4% for safe harbor?
Dec 28, 2020, 12:10 PM
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Aero probably knows, but all I know is that my company's sucks. I used to have 8% profit share at my old company, and I miss that.
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Lot o points [163006]
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Some companies don't like the safe harbor as they have
Dec 28, 2020, 12:13 PM
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to contribute even if the employee does not.
But, it also used to be a match program (if enough) could get you to safe harbor - I want to say 6% for that, but my memory is old and rules change constantly.
Still sucks the company does not see this as a viable benefit - they must either pay great or there is not much competition for good employees - most companies try to stay in their competition's lane so to speak. Younger workers though have a tendency to not care about 401k.
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Oculus Spirit [81607]
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They do pay a competitive salary, which is nice.
Dec 28, 2020, 12:33 PM
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But I do want to go back to a lower salary and a bonus that is directly related to my efforts.
Ultimately I just want to be able to max out my 401k ######.
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Orange Blooded [2203]
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Re: I think it's 4% for safe harbor?
Dec 28, 2020, 12:16 PM
[ in reply to I think it's 4% for safe harbor? ] |
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Yep 2% really sux. When you reach 50 do add the extra money and I am thinking that is a fed. law.
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All-In [42626]
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Hey at least they match something. My company has a 401k but
Dec 28, 2020, 12:12 PM
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no match at all.
So I just do the smart thing and sink all of my extra cash into beanie babies.
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Orange Blooded [2203]
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Re: Hey at least they match something. My company has a 401k but
Dec 28, 2020, 12:17 PM
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You should thank about guns and gold too.
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Heisman Winner [105381]
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THANK GUNS AND GOLD!!!!!!!!!!!!!!***
Dec 28, 2020, 12:21 PM
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Orange Blooded [2203]
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Re: THANK GUNS AND GOLD!!!!!!!!!!!!!!***
Dec 28, 2020, 12:23 PM
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It works for me.
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Heisman Winner [105381]
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Is that a nightly prayer? Daily at noon? When?***
Dec 28, 2020, 12:27 PM
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All-In [42626]
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You should diversify. How about you give me 2 oz of gold
Dec 28, 2020, 12:28 PM
[ in reply to Re: THANK GUNS AND GOLD!!!!!!!!!!!!!!*** ] |
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and a .454 Casull and I'll let you take over payments on my storage unit full of beanie babies?
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Orange Blooded [2203]
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Re: You should diversify. How about you give me 2 oz of gold
Dec 28, 2020, 12:59 PM
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We might could work out a deal.
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Oculus Spirit [81607]
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All-In [42626]
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Nope. It's a small company, so supposedly not enough
Dec 28, 2020, 12:35 PM
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401k participants to be able to set up a matching pool or something.
We just IRA instead.
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Orange Blooded [2203]
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Re: Oh neat, my yearly reminder of how crappy my company's
Dec 28, 2020, 12:25 PM
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I know we don't see eye to eye on many things but I do like your lab pic. I bet he is a good boy.
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Oculus Spirit [93567]
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Re: Oh neat, my yearly reminder of how crappy my company's
Dec 28, 2020, 12:30 PM
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BLACK LABS MATTER!!!
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Oculus Spirit [81607]
TigerPulse: 100%
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Joined: 3/18/07
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Orange Blooded [2203]
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Re: He's dead, thanks.
Dec 28, 2020, 12:38 PM
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You need another one.
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Oculus Spirit [81607]
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All-In [40864]
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you can put 6k into an IRA
Dec 28, 2020, 12:30 PM
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but maybe not a Roth. Its good to have savings outside of your retirement too. You might need 100k one day and if everything is in 401k you are screwd
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Orange Blooded [2203]
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Re: you can put 6k into an IRA
Dec 28, 2020, 12:41 PM
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I think one day they will pass a law to get their tax money from all those 401Ks. I can see that happening soon.
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Oculus Spirit [80892]
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Actually, I could as well.
Dec 28, 2020, 12:44 PM
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That's one reason why I put mine ALL in pre tax. The other is because I have zero deductons s I need to lower my AGI.
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Lot o points [163006]
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Probably only for HCE's
Dec 28, 2020, 1:03 PM
[ in reply to Re: you can put 6k into an IRA ] |
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seriously see it being taxed when income reaches a certain level, much like Soc Sec.
But Roth's require no min distribution which is a huge benefit.
And you would have tax basis in the amount you have contributed, so that amount would be tax free (similar to a non-deductible IRA)
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All-In [40332]
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Benefits, bonuses and stipends?
Dec 28, 2020, 12:32 PM
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Please to be assplaining what these mythical things are
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Oculus Spirit [80892]
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My understanding is that it actually has nothing to do with
Dec 28, 2020, 12:33 PM
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your company, but with the crappy people who work at your company.
Something about safe harbors, and there aren't enough people contributing more than you are to guarantee the vesting.
Before we got bought and our company was only about 2500 people, I'd get that notice every year because I always invested the max amount I could. Then they'd actually refund that amount at the end of the year, I'd put in in my IRA (or just drink it away) ,and always had to pay taxes because it was it was untaxed income.
+1 for the humblebrag of making $130,000 or more in total comp
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Oculus Spirit [81607]
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You're correct.
Dec 28, 2020, 12:38 PM
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There's fuzzy math the IRS makes a 401k test to prevent it from being top heavy, because they aren't safe harbored and don't incentivize enough.
Mostly because I worked over 2500 hours this year...
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Oculus Spirit [80892]
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Its good you are investing.
Dec 28, 2020, 12:39 PM
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Just by BTC with the 3-4K they refund you.
I think i'm going to start doing that.
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Oculus Spirit [81607]
TigerPulse: 100%
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Is there an easy way to do BTC?***
Dec 28, 2020, 12:41 PM
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Oculus Spirit [80892]
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Coinbase***
Dec 28, 2020, 12:43 PM
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110%er [9638]
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Iu - what's the advantage of getting BTC as opposed to
Dec 28, 2020, 8:12 PM
[ in reply to Its good you are investing. ] |
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a "regular" stock? What makes you feel good about it?
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CU Medallion [55607]
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FirstworldrichWhitepeopleproblems.net***
Dec 28, 2020, 1:36 PM
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Oculus Spirit [78823]
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6 figures?
Dec 28, 2020, 3:59 PM
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nice
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