Originally Posted by
ksled
I'd say if you're ~55 or older, this LOA is for you. 100% of the company's 17% contribution spilling into a tax deferred account??? Accessible within 4 years to roll into your PRAP or IRA to invest as you see fit??? Sheeeot. Meanwhile, you can still get the max into the PRAP (77.5K in 2025) with your 31K contribution. There is NO downside. The meager returns of the tax deferred CBP will still beat the PRAP cash with a 30% tax hit up front... at least for 3 or 4 years until you can roll it out. I'm a yes please! But I don't think it will pass, not enough of us old dudes to get it over the line.
No downside? RHA gone for 2-3 years is a huge downside for many older pilots. You talk the 30% tax hit, RHA money is never taxed. So if you planned to fund your RHA when you were making max money at the end of your career based on a contract provision that's been in place since 2012, well you're hosed with no chance to recover.