MBCBP implementation announced…
Negotiator’s Notepad 23-17 outlines implementation of the MBCBP. The selected fund will be LIRKX. Thoughts from the financial gurus among us?
-Bo |
Originally Posted by Bo Darville
(Post 3641598)
Negotiator’s Notepad 23-17 outlines implementation of the MBCBP. The selected fund will be LIRKX. Thoughts from the financial gurus among us?
-Bo |
Originally Posted by Bo Darville
(Post 3641598)
Negotiator’s Notepad 23-17 outlines implementation of the MBCBP. The selected fund will be LIRKX. Thoughts from the financial gurus among us?
-Bo |
Originally Posted by Bo Darville
(Post 3641598)
Negotiator’s Notepad 23-17 outlines implementation of the MBCBP. The selected fund will be LIRKX. Thoughts from the financial gurus among us?
-Bo The best use case I can argue for is short term income tax arbitrage. Using it to defer income in expectation of a lower tax rate in a couple years could be a benefit to some older pilots. A younger pilot using it for a long term retirement savings could do much better. |
Originally Posted by Gunfighter
(Post 3641611)
Good for some, bad for others, glad it's optional.
The best use case I can argue for is short term income tax arbitrage. Using it to defer income in expectation of a lower tax rate in a couple years could be a benefit to some older pilots. A younger pilot using it for a long term retirement savings could do much better. I don't know anything (yet) about this investment vehicle (LIRKX--thanks to the OP for looking up the code), but, assuming it's at least middle-of-the-road, I suspect the tax treatment could make this more valuable than some critics would have us believe. |
Originally Posted by Jughead135
(Post 3641621)
Does that take into account the tax-advantaged nature (deferred taxation)? You mention the lower tax rate expectation; what about avoiding current-year taxation on growth until withdrawal (at that expected lower tax rate)? I'm a big believer in maxing out tax-advantaged accounts....
I don't know anything (yet) about this investment vehicle (LIRKX--thanks to the OP for looking up the code), but, assuming it's at least middle-of-the-road, I suspect the tax treatment could make this more valuable than some critics would have us believe. |
Originally Posted by Jughead135
(Post 3641621)
Does that take into account the tax-advantaged nature (deferred taxation)? You mention the lower tax rate expectation; what about avoiding current-year taxation on growth until withdrawal (at that expected lower tax rate)? I'm a big believer in maxing out tax-advantaged accounts....
I don't know anything (yet) about this investment vehicle (LIRKX--thanks to the OP for looking up the code), but, assuming it's at least middle-of-the-road, I suspect the tax treatment could make this more valuable than some critics would have us believe. I googled and found LIRIX. Not sure if it’s the right one. First impression is use the MBCBP for your bond allocation and run the 401k plan a little hotter with equities. Take the 1.8% tailwind from lack of Alpa dues. Re-evaluate your asset allocation based upon your age. |
Originally Posted by Go Cards go
(Post 3641625)
In addition to being tax deferred, the contributions are exempt from ALPA dues so there’s an instant 1.8ish% boost.
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I don’t think I have ever gotten excess 401k cash. Is it combined company/personal contributions over $56k? So by lowering your own contributions you have some control over how much and how soon in the year money would go into the MBCP? Or is it just the $19k 401 limit?
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Originally Posted by Go Cards go
(Post 3641625)
In addition to being tax deferred, the contributions are exempt from ALPA dues so there’s an instant 1.8ish% boost.
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