Negative. DC contributions (in or out of the plan) are not eligible compensation per the terms of PS.

Ultra Mega Back Door Roth IRA
 

While we are waiting on more plan details, lets discuss this potential gem within the MBCBP.

Could we take an in service withdrawal at 59 1/2, roll the money into an IRA, then convert it to Roth?

At a minimum, could we take an in service withdrawal at 59 1/2 and roll into an IRA we control vs the 60/40 fund?

i stand corrected. I missed that bullet point

The way I read the email, you can only withdraw down to the total of your contributions. Aka only growth on your contributions. Maybe I'm reading it wrong though.

"An in-service withdrawal option is available prior to retirement, annually for pilots who have reached age 59 ½. This option is available as long as the pilot’s MBCBP balance is at least the sum of all contributions and does not require any Company “plus up” "

I'd interpret that paragraph to mean a pilot can take everything out as long as it doesn't require a company plus up to meet the pilot contribution amount. IE the plan is not at a loss.

I've read two terms somewhere, but can't find them in the ALPA email.
-401k Excess = self inflicted by pilot contribution
-401k Excess plus = DC on earnings above the IRS limit (currently 330k)

Does MBCBP get funded with both sources or just 401k Excess Plus?

From the R&I committee's "Check your Check" Alert:

"Company contributions to the Delta 401(k) Retirement Plan for Pilots would have stopped if the combined contributions (yours and the Company’s) reached $61,000 in 2022, per IRC 415(c)(1)(A). Further Company payments (16%) continued in the form of taxable wages and are listed under Earnings as “401(k) Excess.”

Note: Catch-up contributions (max $6,500) are not counted against your individual contribution limit ($20,500) or the combined contribution limit ($61,000).

If you reached the income limit set forth by IRC 401(a)(17) of $305,000 in 2022, the Company contributions to the Delta 401(k) Retirement Plan for Pilots ceased, regardless of whether you’ve reached the 415(c)(1)(A) ($61,000) limit. Upon reaching the 401(a)(17) income limit, all further Company contributions are received as taxable wages and listed under Earnings as “401(k) Excess Plus.”

For tracking purposes, the contributions that apply to the combined limit are listed under Employer Contributions using the term “Company 401(k) Fixed.”

so ironic.

I keep seeing assumptions we can take distributions from the MBCBP at 59 1/2. When I read the letter it said nothing below the amount Delta would have to plus up if the plan lost money. I interpreted that as we cannot take any contribution out, only growth. So you would not be able to get the excess cash contributed by the company until retirement for those looking to save ALPA dues and immediately roll it to an IRA.

I think it's the opposite - that you just cannot force Delta to plus you up before retirement. So say at age 60 you've put in from your own DC excess $100k, but it's a crappy market and the value drops to 90k. You can only withdraw up to 90k. You cannot force Delta to pay out that extra 10k that would be due as a plus up if you retired at that moment.

I read it that one cannot make an in-service withdrawal at all if the account is upside down….