Originally Posted by
ElonMusk
Not quite that black and white. When I was in the financial industry we got PS. It was tailored so we could decide cash money or slide it into retirement accounts. We had to choose early before we knew the amount but we got to choose.
It’s the way it’s set up is my opinion but I haven’t dug into the details nor will I most likely ever do that but my point is it can be set up to comply with IRS rules and interpretations and still give individual rights. I’m sure back when they flew the -200s it was a top shelf program but the world has moved on.
This is the way it's at Delta, you find out the %of earnings to be paid as PS on Valentines day and then you can elect what % or $$ amount you want to flow to your 401K. You can elect all or none or anything in between.
Whatever you choose though basically just "pre funds" your 401K for the year as soon as you hit the limits for the year you start getting all DC contributions as cash for the rest of the year.
So if you take the PS as cash, you get it post tax and spend on whatever.
If you dump into 401K you get the whole thing put in but you'll max out way earlier in the year for contributions (depending on size of the PS of course).
Hope you all spread the loss into 2023 so there's still some PS to spread around for 2022 at SWA!