Originally Posted by
Tailhookah
A Roth conversion now at your current income level would not be advisable. You’re making too much money for it to be beneficial. You’ll probably be better off keeping it in a tax sheltered account and pulling it out later when your income isn’t as high. Although it’s considered flexible, your tax implications now are probably higher than you realize. If you plan on doing this be advised it’ll greatly affect your tax bill if you convert more than a few thousand dollars.
The MBCBP helps everyone. Not just someone who’s about to retire. It shelters more income than we are allowed now from taxes. Many of you who don’t hit the IRS limits for tax sheltered 401k accounts now will soon be able to do that. Especially with a new contract and as you senior up into higher income levels you’ll need more shelters for your income. That’s all the MBCBP provides…. Additional shelter from taxes. So for those naysayers out there just riddle me how that’s bad and not beneficial for everyone. Especially for those who have longer for retirement?
This is false. It's beneficial for most, and especially younger pilots to do Roth contributions for several reasons. Two of the most important are that I think a lot of pilots with a significant time left at Delta will have the same or higher income in retirement as they do now. Second, being able to move your money into an IRA gives you many more options as far as investments. Third, tax rates in my opinion (guess) are probably going to be higher when we retire.
Having the option to defer taxes is great, but ONLY if it's an option. Honestly it might be worth it to give the DZ the money they're demanding just so they don't mess up our retirement plan with some kind of forced MBCBP.