Exceeding Maximum 401k in 2020

[Just Lurking]

Also, everyone need to remember that high compensation employee rules with 60-70 hour work weeks. Company runs the discrimination test after the year is over. Money can be returned to you in the following year as taxable income. Rule effect maybe some package and feeder drivers but mostly feeders involved in sleeper operation.

The IRS defines a highly compensated employee as someone who meets either of the two following criteria: Received $125,000 or more in compensation from the employer that sponsors his or her 401(k) plan in the previous year. For 2020, the compensation must be greater than $130,000.

 

[DriveInDriveOut]

Also, everyone need to remember that high compensation employee rules with 60-70 hour work weeks. Company runs the discrimination test after the year is over. Money can be returned to you in the following year as taxable income. Rule effect maybe some package and feeder drivers but mostly feeders involved in sleeper operation.

The IRS defines a highly compensated employee as someone who meets either of the two following criteria: Received $125,000 or more in compensation from the employer that sponsors his or her 401(k) plan in the previous year. For 2020, the compensation must be greater than $130,000.

Does anyone know from personal experience if our plan usually fails or passes the discrimination test?

 

[IVE GOTTA PACKAGE 4U]

Does anyone know from personal experience if our plan usually fails or passes the discrimination test?

Ask @Jackburton He had an issue with that a few years ago

 

[Jackburton]

Does anyone know from personal experience if our plan usually fails or passes the discrimination test?

Fails, dealt with this a few years back. Because of the pension, there’s an abnormal amount of people that don’t contribute to the 401k, resulting in us failing every year.

I max my Roth401k with the Prudential every year, was returned about 5k of 19k or 18k, can’t remember, whatever the max was, due to being classified as a highly compensated employee. That tax year, I think I did 135k, can’t remember off the top of my head

I’ve since made around 120k and haven’t had a problem going forward.

 

[Jackburton]

Here’s the thread from 2016. Found out more information as I went along so it’s a bit sloppy in the beginning.

Thread 'Need some 401k/tax/payroll help'
Need some 401k/tax/payroll help | UPS Discussions

 

[DriveInDriveOut]

Here’s the thread from 2016. Found out more information as I went along so it’s a bit sloppy in the beginning.

Thread 'Need some 401k/tax/payroll help'
Need some 401k/tax/payroll help | UPS Discussions

Thanks.
Interesting.
I wonder if it's still failing the discrimination test since they started auto enrolling new hires.

 

[What'dyabringmetoday???]

Yes

Wait- there's paid vacation at UPS?

 

[silenze]

Wait- there's paid vacation at UPS?

Feeders

 

[rod]

They used to quit talking SS out of our checks around Oct

 

[Brownslave688]

They used to quit talking SS out of our checks around Oct

Yeah now it comes out of the first 140k.