How much did we give back to wall street in burnbacks from 2015-2019?

 

Both when it's in our PWA. I don't care if you want the thread to be "39% raise and 16% DC is good for me" but remember its a compounding percentage. We are a group of pilots so finding additional PILOT revenue and a place to put it tax free for our RETIREMENT is what I am interested in. I am in no way am trying to tell you how to run your businesses. I am telling you I want better benefits for the PILOT job we all do.

 

That is incorrect.

Year Ended December 31, (in millions)
2019, 2018, 2017
Operating Revenue:
Passenger $42,277, $39,755, $36,947
Cargo 753, 865, 744
Other 3,977, 3,818, 3,447
Total operating revenue $47,007, $44,438, $41,138

 

Well you see the discussion is post bankruptcy gains where pilots keep claiming we traded our work rules away for pay.

 

The question still remains in taxes. To get into the MBCBP, it typically requires that you hit above the tax threshold for all tax deferred accounts. You can max out the 401K (Roth or traditional, or go Roth, or mega back door, and also normal back door into a R-IRA for yourself and spouse). You fill up those buckets, plus HRA, and now into a taxable situation where excess is taxed in and out. MBCMP allows you to continue in deferral while all the pre and post and accounts are also being filled. To those complaining about pensions lost, I don’t see a loss here. Some get upset- but if you run numbers it can be a great retirement vehicle. Everyone’s situation varies and it can helpful or hurtful in your buckets. Eligibility and opting in should matter as a point, but not a knock to a MBCBP. There is a reason it’s a big deal for high earners.

 

The MBCBP is not tax free, it’s tax deferred. An important distinction that even the R&I committee neglected to mention in initial info on the plan. And I am interested in you having the option to use the plan, but not at the expense of forcing me to put $16k plus per year into an underperforming brokerage account that does more to enrich fidelity or PWC than me.

 

DPSP cash is not taxed in and out unless you make some really bad choices. You are taxed at your current marginal rate, then subject to capital gains on the growth depending on what you do with the money. There are several options with the money that would be better than the mbcbp for people with a longer timeframe to retirement. And if the plan really does have a targeted 3-5% growth rate it’s not that difficult to overcome long term capital gains rate.

 

There’s a strategy for everyone and not all strategies are equal, but me personally, if we saw a hypothetical 15-20% pay raise and 20% DC… I’m going all Roth in my 401k from there on out. Some don’t want to pay so much in taxes, I get that. But I’m not as pessimistic about Roths being taxed again later on as some people. I could see a scenario however where there is a cap on how much you can have in the Roth account. But with fluctuating asset values I’m not sure that’s even realistic. I’d pay all the taxes today. Max my 401k out, then back door what I can into mine and my wife’s Roth IRAs. Whatever I still have to invest goes into my kids 529s then normal brokerage account and acts as an easy access investment. I tinker with the real estate investment idea every now and then… a new contract may trigger me to go that route eventually too.

 

I think if they decided to tax high income Roth, I would think in the worse case scenario they'd only be about to tax the gains, not the contributions since they were already taxed.

 

Unless the treasury does something that they have never done before, you won’t be able to do any of this with the mbcbp unless you want to do it all with regular income and put the full dpsp money in your 401k/mbcbp.