Old 06-30-2018, 08:29 AM
  #22  
TurbineDriver
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Joined APC: Mar 2012
Position: 320B
Posts: 454
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Originally Posted by Broncos View Post
- I currently direct Delta's 16% into Fidelity BrokerageLink.
- I also direct 24% individual contribution and 100% of profit share into BrokerageLink. ALL of the individual contributions are AFTER TAX or 401(a).

- Delta's contributions cannot be moved out of the 401k.
- Every two weeks, immediately after I see the after tax money sitting in my BrokerageLink account, I call Fidelity and tell them, "I'd like to transfer all the after tax money into my Roth IRA. (You want to do this right away, because if that after-tax money has a chance to gain earnings, they become taxable, and the earnings cannot be moved into the Roth IRA.)

- From there, it is actually a two-step process. First, it must be moved from the BrokerageLink side to the DPSP side. After that is done, it is moved from the DPSP to the Roth IRA. Fidelity handles both of those steps. It usually takes 2-3 days from my phone call before it is sitting in the Roth IRA. (As a side note, you may be able to get this down to a single step if you direct your money directly into the DPSP, but my process works for me.)

- The best way to think of this (and how it was explained to me), is that you are in a race against Delta. Delta is putting in money every two weeks (based on the number of hours you fly). The TOTAL combined limit is $55,000. The goal is to get to $55,000 as quickly as possible. The quicker you do it, the greater YOUR percentage of $55,000 is, and thus, the greater amount you can get into your Roth IRA each year. Some guys get there in February with Profit Sharing and contributing 75% of their pay.
Thanks for explaining this!! Awesome info. I assume you could just put the money into a money market with the dpsp to help the time factor of any gains. Also can fidelity transfer money into a vanguard Roth IRA? Or does it have to be Fidelity?
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