B Fund

[-9Capt]

However, there is a combined annual contribution limit and for 2007 that limit is $45,000 (or $50,000 if you are 50 or over). This limit applies to all contributions made under both the 401(k) as well as B-Plan (and any other Company defined contribution plans in which you have participated such as selling back unused vacation as well as profit sharing into the 401k, etc). -Neal

That is correct.

The Gov't sets a maximum to the amount they'll let you stash away untaxed.

I've maxed out my 401K for the last 5 years and the companys B-fund contributions has never been taxed. Total amount of tax deferred retirement contribution (401K+Bfund) was aprox $29K, less than the $45K max so no tax.

 

[Ex737Driver]

At CAL we also have the ability to royaly screw-up your B-fund retirement. Schwab allows you to take a portion of your B-fund and place in into an account PCRA. This account allows you to choose from several thousand mutal funds, some load and some no-load, as well as trade almost any type of stock, pink sheet stock, bonds, t-bills, and futures commodities. There are fees associated with these transactions but why leave it to your second or third ex-wife when you can wipe out your retirement with a poorly placed stock trade in one week. :laugh:

 

[-9Capt]

At CAL we also have the ability to royaly screw-up your B-fund retirement. Schwab allows you to take a portion of your B-fund and place in into an account PCRA. This account allows you to choose from several thousand mutal funds, some load and some no-load, as well as trade almost any type of stock, pink sheet stock, bonds, t-bills, and futures commodities. There are fees associated with these transactions but why leave it to your second or third ex-wife when you can wipe out your retirement with a poorly placed stock trade in one week. :laugh:

I'm a big fan of good quality, low cost funds. Buy 'em, hold 'em, and fughetaboutit.

 

[Lear70]

We had a couple day traders come to work at my last job (regional) and those guys LOVED the PCRA option. Made a LOT more money, but those guys admittedly knew EXACTLY what they were doing with it.

GREAT option if you're smart enough to get professional help managing it. Otherwise...