SkyWest Employee Stock Purchase Program and 401K

[Nevets]

Nevets,
As strange as it may seem I agree with both, I wish the company did an automatic enrolement and the the income was fixed. I know for some it has been a hardship when you don't know what the profit sharing is going to be and you can't use the income for say a loan app.

But overall I still feel SkyWest is as good as any of the others and also as rock solid as an airline can be in this day and age.

Doesn't seem strange to me at all. It makes sense.

 

[SKYWRJGUY]

401k: Fully funded.
Roth IRA: Over the limit (past couple of years).
Traditional IRA: Fully funded.
DCP: Enrolled, funded.
Savings: Check + small contributions.
Addtl Discretionary Cash: Hopefully by May

Apparently the pilots-only disrcimination test failed as well Take the good while it's still going...

 

[Nevets]

401k: Fully funded.
Roth IRA: Over the limit (past couple of years).
Traditional IRA: Fully funded.
DCP: Enrolled, funded.
Savings: Check + small contributions.
Addtl Discretionary Cash: Hopefully by May

Apparently the pilots-only disrcimination test failed as well Take the good while it's still going...

Over here they offer a Roth 401k or even after tax contributions to your 401k. Then at least you could contribute to the maximum that law allows ($15.5k for 2008). Maybe you ought to look into getting that set up there as well.

 

[Gr82Aviate]

401k: Fully funded.
Roth IRA: Over the limit (past couple of years).
Traditional IRA: Fully funded.
DCP: Enrolled, funded.
Savings: Check + small contributions.
Addtl Discretionary Cash: Hopefully by May

Apparently the pilots-only disrcimination test failed as well Take the good while it's still going...

How do you fund "over the limit"?...and didn't think you could fund the Roth IRA "over the limit",and fund a traditional IRA at the same time??..!!

 

[trip]

401k: Fully funded.
Roth IRA: Over the limit (past couple of years).
Traditional IRA: Fully funded.
DCP: Enrolled, funded.
Savings: Check + small contributions.
Addtl Discretionary Cash: Hopefully by May

Apparently the pilots-only disrcimination test failed as well Take the good while it's still going...

Living in mom's basement and spending weekends and freetime with a killer online gaming system.

 

[SKYWRJGUY]

I didn't fund them over the limit; I'm over the income limit for funding it. I think SkyWest is going to have the Roth 401k next year, as rumor has it--while there may be no income limit (and there isn't a restrictive one for me and the 401k), I'm sure it'll still be privvy to the dreaded discrimination test...

 

[Nevets]

I didn't fund them over the limit; I'm over the income limit for funding it. I think SkyWest is going to have the Roth 401k next year, as rumor has it--while there may be no income limit (and there isn't a restrictive one for me and the 401k), I'm sure it'll still be privvy to the dreaded discrimination test...

The $15.5k limit still applies for the Roth 401k. You cannot go over that limit in combined contributions to your 401k and Roth 401k. At least that is the way I understand it at XJT.

 

[SkyW120]

The $15.5k limit still applies for the Roth 401k. You cannot go over that limit in combined contributions to your 401k and Roth 401k. At least that is the way I understand it at XJT.

I believe the only way to extend the limit is to fully fund the 401k, $15,500 this year, and then set up a separate Roth IRA outside the company and max that out at $5,000/ year - letting you stash away $20,500/year.

If I understand it correctly, if you do the company Roth 401K, you are limited to $15,500/year - I must be missing something here, but why would you limit yourself to $15,500/year when you can set up a separate Roth and save a combined $20,500/year?

This assumes you make less than the Roth limit of $105,000/year.

 

[sweptback]

I'm not really sure what the benefits of the Roth 401k are, assuming you already fund your 401k and Roth IRA.

 

[Nevets]

I believe the only way to extend the limit is to fully fund the 401k, $15,500 this year, and then set up a separate Roth IRA outside the company and max that out at $5,000/ year - letting you stash away $20,500/year.

If I understand it correctly, if you do the company Roth 401K, you are limited to $15,500/year - I must be missing something here, but why would you limit yourself to $15,500/year when you can set up a separate Roth and save a combined $20,500/year?

This assumes you make less than the Roth limit of $105,000/year.

I'm not really sure what the benefits of the Roth 401k are, assuming you already fund your 401k and Roth IRA.

The Roth 401k does not have an income limit. Also, you may want to put the whole $15.5k into the Roth 401k and also put another $5k in a Roth IRA. If you have a Roth 401k and a regular 401k, it also gives you the ability to put some money away before taxes and some after taxes.