UpstateNYUPSer(Ret)
Well-Known Member
He works too much. $125K for a pkg car driver?
Maxing out 401k contributions
- Thread starter Tough Guy
- Start date
He works too much. $125K for a pkg car driver?
He is also in a bonus center, that adds a lot to his pay.
Maybe they need to hire a few more drivers?
1989
Well-Known Member
It's called a bone us
We don't have that here.
1989
Well-Known Member
They seem to be tightening the numbers so we don't get it here either.
Of course they are.
twoweeled
Well-Known Member
I've never been management. But that did happen to me maybe 3-5 times. Strange thing was, I know other drivers who made what I did, and I asked them if it happened to them. They claim it didn't, but you now how some drivers are about "anything" having to do with their income. Maybe they didn't want to say.
Jackburton
Gone Fish'n
I asked other drivers that made close to what I made about the same thing as well, they said "max what? We have a pension". Some were doing 5-10% but never the max. Last year I had over 4K that was sent back to me because I hit the HCE. I wrote a thread about my experience on it.
Brownslave688
You want a toe? I can get you a toe.
If you don't mind what do bring home on a typical pay check.
Jackburton
Gone Fish'n
It's funny you ask that as I was just having a conversation with a co-worker about the difference in bring home vs hours worked. For example, two weeks ago I brought home 1263.49 working 59.30 hours. Last week I only worked 50.26 hours and brought home 1080.43. So 10 more hours nets me only about $200 in extra cash. The reason is two things, more taxes obviously but that is also taxes on my Roth which is set at 20%, which is calculated off the gross, but physically taken off the net. I hope I explained that well enough.
Brownslave688
You want a toe? I can get you a toe.
I also do Roth so yeah I understand.
Was just curious because we have a driver who is in at least his mid 50's who has less than 10 years full time. He was talking about bringing home over $1500 a week while covering feeders and all I could think about was my god you're not putting anywhere near enough into your 401k
Jackburton
Gone Fish'n
Actually it was 127k, TTKU. Thanks for your concern on me working to much as well, I'll take that into consideration when I'm walking out of here at 53.
Jackburton
Gone Fish'n
Yeah, I tried doing a split last year for the first time, Roth first half of the year, traditional second. The amount of bring home between the two at the taxation rate I face when hitting 58+ hours a week is amazing.
UpstateNYUPSer(Ret)
Well-Known Member
Anything over 8 hours of OT you are working for free.
Jackburton
Gone Fish'n
Your statement lacks mathematics.
UpstateNYUPSer(Ret)
Well-Known Member
You said it yourself---you tend to lose money when you work 8 or more hours of OT.
Jackburton
Gone Fish'n
Where did I say I lose money?
I was simply describing how the increase in hours has diminishing returns to take home pay. Factors such as increase taxes and increase contributions to my Roth are the reasoning. It all comes out in the end when you file your taxes if you've overpaid or underpaid, there's no "secret" income threshold, it's directly related to your deductions and tax credits. In other words, it's a simple math equation as to what you bring home every week. The government has yet to tax people 100%.
Under your current logic anyone who earns more than their deductions and tax credits is losing money. This is also know as not paying any taxes. In order to achieve this you must earn on the lower end of the income scale generally speaking.
It's interesting you claim unions promote mediocrity, yet you are doing the same thing by telling people they work too much based on their tax bracket.
I'd rather work for a dollar and pay a quarter than not work for the dollar to avoid paying the quarter.
UpstateNYUPSer(Ret)
Well-Known Member
Diminishing returns=losing money.
TTKU
TTKU
Jackburton
Gone Fish'n
I understand, mathematics isn't your strong suit, then again you adjust your withholding so you can squeeze more money out of your vacation. Things must be tight to have to do that. It's cool man, some folks just don't understand the big picture, I don't have time to teach a math class.
Ms.PacMan
Well-Known Member
The HCE is the reason we have the after tax contribution option in the 401k. You can put money in there (up to 5%) and then roll it over into a personal Roth IRA before you retire - most ppl do it once a year. The 5% doesn't count towards the 401k max.
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