MBCBP implementation announced…
05-26-2023 | 08:37 AM
#101
Line Holder
Joined: Sep 2011
Posts: 1,098
Likes: 2
From: Hates Commuting
Careful. Retro [i.e., the "Pilot Retro Pay" for 2023] counts toward the $330K. The OTP [i.e., the "Pilot Payment" for 2020 - 2022] does not.
05-26-2023 | 08:37 AM
#102
Gets Weekends Off
Joined: Apr 2018
Posts: 4,158
Likes: 593
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
Line Holder
Joined: Feb 2011
Posts: 784
Likes: 7
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 | 08:49 AM
#104
Moderator
Joined: Jul 2006
Posts: 7,507
Likes: 505
05-26-2023 | 08:51 AM
#105
Racketeer
Joined: Mar 2015
Posts: 13,364
Likes: 846
From: N60.4858 W149.9327
I reread it and you could be correct. I'm waiting on more details. My understanding was an out only once in your career and it may be wrong.
05-26-2023 | 08:51 AM
#106
Gets Weekends Off
Joined: Jul 2010
Posts: 3,877
Likes: 122
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
Line Holder
Joined: Sep 2011
Posts: 1,098
Likes: 2
From: Hates Commuting
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
Line Holder
Joined: Feb 2011
Posts: 784
Likes: 7
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
Line Holder
Joined: May 2022
Posts: 229
Likes: 12
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: Nov 2016
Posts: 1,711
Likes: 129
Pretty sad that it's only optional for existing pilots. I was told this will be an optional plan. (Emphasis on the period). That was a lie.
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