That actually makes sense, because the company wants the money to stay in the account to grow back into the positive, lowering their exposure to owing a plus-up.

Why would anyone do that anyway? Assuming you're still working (in service withdrawals), at the height of your earning years, why would anyone (short of an extremely rare massive emergency) pull out tax deferred money from a retirement account and pay the highest rate taxes on those dollars?

Assuming the plan allows it, you can roll the in service withdrawal to an IRA, keep the tax deferral and get control of the money.

If forced to make a taxable distribution, you would save the alpa dues and get the same benefits as just keeping the spill cash.

Here are three reasons:

-Pilot already "hit their retirement number", but plans to work 'til 65. They fly a partial schedule earning 300K and pull out another 50K while still remaining in the 24% bracket
-A business, real estate or large charitable contribution generates a tax loss that can offset a distribution of prior year contributions.
-Making systemic withdrawals after 59 1/2 to roll the funds into an IRA that can be invested in a better fund/ETF.

MEC "Engage" Podcast #29, on the subject of the MBCBP, is out:

https://open.spotify.com/episode/213...316e277de47639


I didn't hear anything that changed anything under discussion. One tidbit I found interesting: apparently, 70% of DL pilots are receiving spill cash.... I didn't expect it was that high a number....

Number four - Save on DALPA dues.

Scoop

How much of the 70% was self inflicted?

Unspecified (at least in the podcast).

Sounds like JA should do us all a solid and change the dues charges on excess.