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Time to bump up that 401k
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<blockquote data-quote="Jackburton" data-source="post: 2502391" data-attributes="member: 34538"><p>I made 127k last year and was unable to contribute the maximum under the Prudential Retirement plan. The reason for this was because of a law that restricts employees of companies that are deemed highly compensated, to contribute the federally allowed maximum to their own 401ks if not enough lower earners of the company aren't contributing enough to their own 401ks</p><p></p><p>The reason for this is to prevent the HCE (highly compensated employees) to use the 401k as strictly a tax shelter and to incentivize the lower employees to contribute to keep the HCE's able to contribute the max. </p><p></p><p>The problem UPS has is we are offered a pension, so many don't think they have a reason to contribute to the 401k in the first place. Secondly, I have no control over decisions that are made as I'm just a driver, but am being punished because I worked my ass off to achieve that level of salary last year. </p><p></p><p>Needless to say, one of the reasons I'm not working as much this year is because of the aforementioned. </p><p></p><p>Sorry that it's not 35 words or less, but I hope I cleared up any confusion.</p></blockquote><p></p>
[QUOTE="Jackburton, post: 2502391, member: 34538"] I made 127k last year and was unable to contribute the maximum under the Prudential Retirement plan. The reason for this was because of a law that restricts employees of companies that are deemed highly compensated, to contribute the federally allowed maximum to their own 401ks if not enough lower earners of the company aren't contributing enough to their own 401ks The reason for this is to prevent the HCE (highly compensated employees) to use the 401k as strictly a tax shelter and to incentivize the lower employees to contribute to keep the HCE's able to contribute the max. The problem UPS has is we are offered a pension, so many don't think they have a reason to contribute to the 401k in the first place. Secondly, I have no control over decisions that are made as I'm just a driver, but am being punished because I worked my ass off to achieve that level of salary last year. Needless to say, one of the reasons I'm not working as much this year is because of the aforementioned. Sorry that it's not 35 words or less, but I hope I cleared up any confusion. [/QUOTE]
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Time to bump up that 401k
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