01
Plan-defined eligible compensation
CONTRACT RETIREMENT DOLLARS
The employer percentage is not the contribution. Eligible pay turns it into dollars.
Model employee deferrals, employer dollars, profit sharing, catch-ups, and growth separately.
START WITH THE PLAN LANGUAGE
Gross pay and eligible compensation may not be the same number.
Use the current collective-bargaining agreement and plan description to identify which pay categories count. Then verify vesting, deposit timing, true-ups, and the treatment of leave, disability, furlough, or midyear retirement.
02
Employee deferral and catch-up elections
03
Company non-elective contribution, profit-sharing, and spillover rules
04
Payroll and recordkeeper year-to-date totals
2026 LIMIT CHECK
Two different federal limits can constrain the same account.
The 2026 employee elective-deferral limit is $24,500. Plan-permitted catch-ups are $8,000 at age 50+ and $11,250 at ages 60–63. These employee limits are separate from annual additions.
The 2026 annual-additions limit is $72,000, or 100% of compensation if lower, before eligible catch-ups. Employee deferrals, company non-elective contributions, and other employer allocations generally count. The compensation limit is $360,000. Plan terms may be tighter; confirm unusual cases with the administrator.
Editable example: This guide uses an 18% company non-elective contribution—not a match. It is not a universal airline rate, the pilot's own deferral is separate, and spillover, profit-sharing, or additional plan credits vary by contract.
| Dollar source | What controls it | Common error |
|---|---|---|
| Employee deferral | Your election, eligible pay, tax type, and deferral limit | A flat percentage reaches the limit too early or too late |
| Company non-elective contribution | Contract formula, eligible compensation, and limits | Applying the percentage to W-2 gross without checking definitions |
| Profit sharing or other employer allocation | Formula, timing, eligibility, spillover, and annual additions | Treating variable dollars as guaranteed |
| Catch-up contribution | Age, plan permission, current law, and payroll | Assuming an incorrect election will fix itself |
RUN THREE PAY CASES
Retirement funding should not require permanent peak earnings.
Conservative
Use lower credit hours, no premium pay or profit sharing, and only reliable contract contributions.
Normal
Use a sustainable schedule and typical eligible pay. This should fund the base plan.
Peak
Show extra trips, overrides, premium pay, and awards separately. Direct the upside to a named goal.
Interrupted
Remove several months of eligible pay and attached employer dollars. Track missed saving and growth separately.
PRIMARY REFERENCES · REVIEWED AUGUST 31, 2026
Use current IRS limits and the documents controlling your plan.
- IRS: 401(k) and profit-sharing contribution limits
- IRS: 2026 retirement contribution limit announcement
- Department of Labor: retirement plans
- Your plan: current collective-bargaining agreement, summary plan description, payroll record, and recordkeeper statement
Educational information only. Limits and plan terms change; confirm the current year and your own plan before changing payroll elections.
RUN THE NUMBERS
Turn contribution rules into dollars.
ANNUAL PLAN
Contribution planner
Coordinate monthly retirement contributions with other goals.
OPEN TOOL → COMPANY CONTRIBUTIONPilot contribution model
Translate eligible compensation and the company contribution into dollars at risk.
OPEN TOOL → LONG-TERM RESULTInvestment growth
Project recurring contributions without relying on peak pay or profit sharing.
OPEN TOOL →
NEXT DECISION