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Originally Posted by Gunfighter
(Post 3712613)
Imputed income reduction ranges from several hundred for younger pilots to several thousand for older pilots. Apply your marginal tax rate to get your savings. The exact numbers for imputed income are in the links from the 9/27 FltOps email.
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Originally Posted by First Break
(Post 3712587)
Fair enough. If there is truly some massive “gotcha” boogie man that wasn’t disclosed by ALPA or Delta, I’d gladly join the group DFR lawsuit.
I could be wrong on this, but I don’t think the imputed income differences have anything to do with discretion by met life in the desperate treatment of both plan offerings. I think it’s a byproduct of the tax code and how group term vs universal life policies are treated for purposes of calculating imputed income. Everything else being equal, smart money is on the most tax efficient option. Between the MBCBP, the GVUL and the deferred compensation plan (if that ever gets going), that's a pretty interesting assortment of options. My wife is a few years younger than me, and I see there are new DPMP options for that situation as well that saves real money. |
Originally Posted by Gunfighter
(Post 3712613)
Imputed income reduction ranges from several hundred for younger pilots to several thousand for older pilots. Apply your marginal tax rate to get your savings. The exact numbers for imputed income are in the links from the 9/27 FltOps email.
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Originally Posted by UGBSM
(Post 3712738)
Not interested in putting my own money into the GVUL after $50k investment portion. If I were younger maybe, but I'm a little over 2 years from age 65 retirement. I guess I'll switch to the new plan for those two years for reduced inputed income tax and then surrender it at age 65 (or age 67?) retirement. I'll take the free $50k life insurance Delta pays for of course but I don't really need any life insurance at all.
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Originally Posted by demon llama
(Post 3712569)
18) If you don't use the investment option, nothing is returned to you if you surrender the policy upon leaving Delta. (Cash value would be returned and the amount over the Cost basis is taxed at your current income tax rate)
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I have never paid attention to imputed income. If I understand correctly this GVUL plan has a lower imputed income value and thus it will result more lower taxes? How is that possible? This plan has a lower value?
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Originally Posted by 172skychicken
(Post 3712778)
This is what I'm hung up on. I don't plan on using the investment option. So does this mean you would get the premiums Delta paid returned to you if you elect to surrender the plan at retirement? What exactly is the cash value if you aren't using the investment option?
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Originally Posted by Nantonaku
(Post 3712785)
I have never paid attention to imputed income. If I understand correctly this GVUL plan has a lower imputed income value and thus it will result more lower taxes? How is that possible? This plan has a lower value?
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Point 1: Anyone know how are cash value gains above the cost basis taxed? Long term capital gains rate or ordinary income? Is that the “modified endowment contract” tax treatment? Any gouge on this situation?
Point 2: Even if they are taxed the same, over 10, 20 years, even a 1-2% difference in rate of return between GVUL and after tax brokerage could make a huge difference with compounding. |
Originally Posted by Planetrain
(Post 3712829)
Point 1: Anyone know how are cash value gains above the cost basis taxed? Long term capital gains rate or ordinary income?
Point 2: Even if they are taxed the same, over 10, 20 years, even a 1-2% difference in rate of return between GVUL and after tax brokerage could make a huge difference with compounding. |
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