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Old 07-01-2015, 10:20 PM
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Quote:
Originally Posted by eyeb View Post
I contribute 18000 to 401k, you sure you aren't putting it in correct place? $18k is the current max so you should be able to put that amount in regardless of them matching or not.

The 7500 sounds like an IRA limit
The rules are different for highly compensated employees.

Every plan has to pass an annual discrimination test. In order to do so, contributions from highly compensated employees and others have be similar. If they're not, the HCE gets a refund and can't actually contribute the max.
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Old 07-01-2015, 10:29 PM
 
2,813 posts, read 2,099,268 times
Reputation: 6129
Quote:
Originally Posted by JasonF View Post
The rules are different for highly compensated employees.

Every plan has to pass an annual discrimination test. In order to do so, contributions from highly compensated employees and others have be similar. If they're not, the HCE gets a refund and can't actually contribute the max.
Basically meaning that HCE who posted he can only put $7500 in his 401K, works for a company that has a lot of low wage workers that do not contribute very much to their company's retirement plan.
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Old 07-02-2015, 08:14 AM
 
1,149 posts, read 1,580,449 times
Reputation: 1398
Quote:
Originally Posted by JohnBustamonte View Post
Interesting discussion I had with my friends.

They were saying how poor citizens (legal or otherwise) get better benefits than the middle class: free healthcare, free food, free educational programs etc.

One friend compared it to hotels. If you go with the cheaper ones, they will include free breakfast, wifi, parking, etc. But sometimes if you pay more, you don't get so many free amenities.

What do you think?
I think well-off people don't understand how benefits work. Yes, you get money for not working in some instances, but not a lot. You couldn't maintain your standard of living by going on public benefits and welfare.
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Old 07-02-2015, 08:43 AM
 
Location: Southeast U.S
850 posts, read 897,280 times
Reputation: 1007
Quote:
Originally Posted by fishbrains View Post
Showing a lack of understanding of the tax system.

The $50k earner pays 25% (not 26%) on taxes for earnings over $37,451. The $100k earner pays the same tax rate of 25%, up to $90,750. Then, for the amount over $90,750, the $100k earner pays 28% (not 35%).

That's why it's called a marginal tax rate. It's only on the very last $9250 that the high earner pays the higher rate. Interestingly, if your high earner hits $117k, then the tax rate actually goes down because they no longer have to pay the social security deduction.

It is always financially beneficial to earn more. Period. You never, ever go backwards by earning more.
Calm down. No need to come off so condescending. I got my tax rates from a online pay check calculator that claimed that was the typical withholding rate and it is considered to be an estimate not facts. You must work for the IRS since you shot my estimates down. I did the same paycheck calculator for my state and my annual salary and it was pretty accurate with what I bring home biweekly.
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Old 07-02-2015, 08:53 AM
 
Location: Southeast U.S
850 posts, read 897,280 times
Reputation: 1007
Quote:
Originally Posted by AfternoonCoffee View Post
But...but...that doesn't even make sense!! You can't compare 2 salaries and then just *decide* the higher salary is saddled with more student loans, more mortgage debt and a more expensive car loan!!!

Are you just trying to convince yourself?

Unless one is scraping the absolute bottom of the barrel, and has NO hope of a brighter future, then of course more money is always better than less money. It's utterly preposterous to argue otherwise!

Assuming the *same* student loan debt, mortgage and car payment you would really rather earn $50,000 a year rather than $100,000?

And comparing tax percentages seems silly. Heck, even if I was taxed 50% I'd rather make $300,000 and take home $150,000 than make $50,000 and be taxed at only 10% and bring home $45,000!! (Not to mention that's not how taxes work anyway)

This thread can't be for real...
I was just answering the question with my honest opinion. If you are mid career and been on the same job for 20+ years of course you are making 6 figures or close to it; however, most starting their career in the 6 figure range are typically engineers, lawyers, doctors, pharmacists, dentists. These are professions where individuals have 6 figure student loan debts with the exception of engineers. Making more money or getting to 6 figures requires time and persistence and all other careers. You can't make 6 figures overnight. The ones that let their careers progress into 6 figures may not have high debts. You took my comment as if it is applicable to all situations. BTW, I presumably agree that a low paying job is not good to have but there are some additional factors that such as higher debts that a 6 figure salary does not solve and a lot individuals already addressed that so no need for your arrogant comment. Everyone has the right to state their opinion even if you don't agree with it.
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Old 07-02-2015, 10:59 AM
 
1,209 posts, read 1,804,652 times
Reputation: 1590
As a single, mid 20s male earning in the range of 65-75k I feel discriminated against in the workplace, by the government, by insurance agencies, by society in general for my lifestyle. A single male routinely taking captivating women out on dates would not stand a chance at running for President for the most inane excuses.
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Old 07-02-2015, 11:16 AM
 
2,045 posts, read 2,136,262 times
Reputation: 7226
Quote:
Originally Posted by JohnBustamonte View Post

The point is, if you're poor and not working so hard, or working your butt off as a lower-middle-class individual, you get the same in return.
Come on, John. Is it really "the same"? Is the food that the poor eat the same as the food that those who are middle class eat? Is the housing the same? Is the quality of the medical care the same? Is the quality of life, in general, the same? You know the answer to this. Nobody would rather subsist on public assistance. And by the way, you're making a correlation between income and how hard someone works. Lots of people who are poor do back-breaking work. Lots of people who are rich or even middle class do not work hard for their money.

Last edited by Mimidae; 07-02-2015 at 11:30 AM..
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Old 07-02-2015, 11:25 AM
 
2,045 posts, read 2,136,262 times
Reputation: 7226
Quote:
Originally Posted by fishbrains View Post
Showing a lack of understanding of the tax system.

The $50k earner pays 25% (not 26%) on taxes for earnings over $37,451. The $100k earner pays the same tax rate of 25%, up to $90,750. Then, for the amount over $90,750, the $100k earner pays 28% (not 35%).

That's why it's called a marginal tax rate. It's only on the very last $9250 that the high earner pays the higher rate. Interestingly, if your high earner hits $117k, then the tax rate actually goes down because they no longer have to pay the social security deduction.

It is always financially beneficial to earn more. Period. You never, ever go backwards by earning more.
Can't rep you again, but thank you for injecting Actual Facts into this otherwise pretty hare-brained discussion.
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Old 07-02-2015, 11:38 AM
 
14,376 posts, read 18,273,587 times
Reputation: 43042
Quote:
Originally Posted by BradPiff View Post
If living on low paying jobs are so good why don't you quit your job and work at McDonald's for a year and see how great it is.
Pretty much this. Spend a little time with the people who are benefitting from those government programs. I don't think you'll envy them that much.
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Old 07-02-2015, 11:40 AM
 
2,045 posts, read 2,136,262 times
Reputation: 7226
Here's a story about one member of the working poor - not lower middle class, but poor. Maria Fernandes, the woman who died in her car in between shifts at Dunkin Donuts. You're going to tell me she and the many, many others like her don't have a lot of money because they don't work hard enough?

Dunkin' Donuts Worker's Death Reveals The True Cost Of Our Low-Wage, Part-Time Economy
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