MBCBP implementation announced…
05-26-2023, 08:37 AM
#101
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Joined APC: Sep 2011
Position: Hates Commuting
Posts: 888
Originally Posted by notEnuf
We are only talking about overages also. Personally my overages have been in the less than $2K per year range as I manage my contributions. Anyone making $330K+ (a lot of us with "retro") this year will have some but below that should be fairly manageable.
05-26-2023, 08:37 AM
#102
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Joined APC: Apr 2018
Posts: 2,982
Originally Posted by notEnuf
This fund is about what I expected. Diversified stable earnings with no real risk and the associated lower returns. I'll manage my cash overages to be minimal this year and see what ends up in there. I probably won't make it the total core low risk portion of my portfolio but will evaluate it in the next few years and opt out if the amount exceeds my target. The tax savings and dues savings are significant enough to try it out.
05-26-2023, 08:46 AM
#103
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Joined APC: Feb 2011
Posts: 760
Originally Posted by Jughead135
Yes, of course. But the act of rolling it over would not be a taxable event (which is how I read the original list of options).
05-26-2023, 08:49 AM
#104
Super Moderator
Joined APC: Jul 2006
Posts: 5,549
Originally Posted by First Break
Yes, passive activity loss for someone who earns W2 income is a beautiful thing. But sure can take a lot of effort, speaking from experience.
Ya but flying a full 75+ hour at Delta requires lots of effort too lol! Good discussions so far.
05-26-2023, 08:51 AM
#105
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Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,026
Originally Posted by m3113n1a1
The way I read the email we only get one chance to opt out..if we don't do it now, we're in it forever. Correct me if I'm wrong.
05-26-2023, 08:51 AM
#106
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Joined APC: Jul 2010
Posts: 3,201
Originally Posted by m3113n1a1
The way I read the email we only get one chance to opt out..if we don't do it now, we're in it forever. Correct me if I'm wrong.
Wasn’t the MBCBP negotiated to be able to opt in every contract cycle??? What happened with that???
With 29yrs to go, my wife and I are 99% thinking in opting out.
05-26-2023, 08:52 AM
#107
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Joined APC: Sep 2011
Position: Hates Commuting
Posts: 888
Originally Posted by mispoken
rolling from MBCBP to IRA is not taxable. It would extend your tax deferral from retirement age to age 72. My point is that these taxes have to be taken into account to get a truly accurate picture. To simply say $1000 untaxed gets invested today vs $600 taxes today into a Roth is not the complete picture. Taxes on either method need to be factored in. But we are kind of just spinning our wheels at that point making guesses. Hard to know what taxes will be in 20 years, but they DO exist, even on MBCBP Deferrals.
05-26-2023, 09:08 AM
#108
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Joined APC: Feb 2011
Posts: 760
Originally Posted by Jughead135
Again, fair enough (& agreed). That same logic needs to be applied, though, to any tax-deferred annuity--which, on the original list, was the only one listed as "further deferral," vs "taxable" for the others. That's my only point, that an IRA rollover may be taxable (Roth IRA) or tax-deferred (traditional IRA).
05-26-2023, 09:15 AM
#109
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Joined APC: May 2022
Posts: 181
Originally Posted by mispoken
ok, think we are on the same page. I think this sidebar was started as someone mentioned that we control withdrawals and therefore the tax rate, which I don’t completely agree with. The tax ramifications of option 3, rolling it into an annuity, I’m uncertain of so I won’t comment on that.
05-26-2023, 09:19 AM
#110
Coverage Award...
Joined APC: Nov 2016
Posts: 1,305
Originally Posted by Trip7
Glad the Union made it optional. I'm out
I feel for new hires after June 1st that will be forced into this plan. Only reasonable scenario where the MBCBP is a good idea is someone close to retirement running their portfolio conservatively
I feel for new hires after June 1st that will be forced into this plan. Only reasonable scenario where the MBCBP is a good idea is someone close to retirement running their portfolio conservatively
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