Sweet I bet when they work hard to recapture outsourced flying we can just "me too" that straight away.

 

Big money for DAL,NWA,UAL,AAA pilots.



Congressional Record
112th Congress (2011-2012)

TEXT OF AMENDMENTS -- (Senate - February 03, 2011)

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[Page: S553] GPO's PDF




SEC. __X. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER BANKRUPTCY.

(a) General Rules.--
(1) ROLLOVER OF AIRLINE PAYMENT AMOUNT.--If a qualified airline employee receives any airline payment amount and transfers any portion of such amount to a traditional IRA within 180 days of receipt of such amount (or, if later, within 180 days of the date of the enactment of this Act), then such amount (to the extent so transferred) shall be treated as a rollover contribution described in section 402(c) of the Internal Revenue Code of 1986. A qualified airline employee making such a transfer may exclude from gross income the amount transferred, in the taxable year in which the airline payment amount was paid to the qualified airline employee by the commercial passenger airline carrier.
(2) TRANSFER OF AMOUNTS ATTRIBUTABLE TO AIRLINE PAYMENT AMOUNT FOLLOWING ROLLOVER TO ROTH IRA.--A qualified airline employee who has contributed an airline payment amount to a Roth IRA that is treated as a qualified rollover contribution pursuant to section 125 of the Worker, Retiree, and Employer Recovery Act of 2008, may transfer to a traditional IRA, in a trustee-to-trustee transfer, all or any part of the contribution (together with any net income allocable to such contribution), and the transfer to the traditional IRA will be deemed to have been made at the time of the rollover to the Roth IRA, if such transfer is made within 180 days of the date of the enactment of this Act. A qualified airline employee making such a transfer may exclude from gross income the airline payment amount previously rolled over to the Roth IRA, to the extent an amount attributable to the previous rollover was transferred to a traditional IRA, in the taxable year in which the airline payment amount was paid to the qualified airline employee by the commercial passenger airline carrier. No amount so transferred to a traditional IRA may be treated as a qualified rollover contribution with respect to a Roth IRA within the 5-taxable year period beginning with the taxable year in which such transfer was made.
(3) EXTENSION OF TIME TO FILE CLAIM FOR REFUND.--A qualified airline employee who excludes an amount from gross income in a prior taxable year under paragraph (1) or (2) may reflect such exclusion in a claim for refund filed within the period of limitation under section 6511(a) (or, if later, April 15, 2012).
(b) Treatment of Airline Payment Amounts and Transfers for Employment Taxes.--For purposes of chapter 21 of the Internal Revenue Code of 1986 and section 209 of the Social Security Act, an airline payment amount shall not fail to be treated as a payment of wages by the commercial passenger airline carrier to the qualified airline employee in the taxable year of payment because such amount is excluded from the qualified airline employee's gross income under subsection (a).
(c) Definitions and Special Rules.--For purposes of this section--
(1) AIRLINE PAYMENT AMOUNT.--
(A) IN GENERAL.--The term ``airline payment amount'' means any payment of any money or other property which is payable by a commercial passenger airline carrier to a qualified airline employee--
(i) under the approval of an order of a Federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007, and
(ii) in respect of the qualified airline employee's interest in a bankruptcy claim against the carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount.
The amount of such payment shall be determined without regard to any requirement to deduct and withhold tax from such payment under sections 3102(a) and 3402(a).
(B) EXCEPTION.--An airline payment amount shall not include any amount payable on the basis of the carrier's future earnings or profits.
(2) QUALIFIED AIRLINE EMPLOYEE.--The term ``qualified airline employee'' means an employee or former employee of a commercial passenger airline carrier who was a participant in a defined benefit plan maintained by the carrier which--
(A) is a plan described in section 401(a) of the Internal Revenue Code of 1986 which includes a trust exempt from tax under section 501(a) of such Code, and
(B) was terminated or became subject to the restrictions contained in paragraphs (2) and (3) of section 402(b) of the Pension Protection Act of 2006. [Page: S556] GPO's PDF

 

Sorry, I read this 3X, and still couldn't make out how, exactly, this means 'BIG $ for ual, aa, dal pilots'. Legalese is not my first language. Could someone shed light on this?
Perhaps--I don't recall--we were taxed on the $ we got when the pension was terminated, and might this be a tax refund?
Thanks-

 

Chuck-
Its kinda complex, but here's the short version--

The Delta, Northwest, United and USAir pilots all received certain distributions of cash following bankruptcy. In some cases the distribution was substantial.
That money was all taxed as ordinary income.
The gov't. did make a 1 time exemption to the income limits for contributions to Roth IRAs but it still was counted as ordinary income.
This new law will allow the funds to be treated as if they were roll-overs to regular IRA accounts which means there would be no income tax due.
That means those of us who received those distributions can now convert them to regular IRAs and get a BIG tax refund.

Its only fair. We lost our entire pension in those bankruptcies.

 

Thanks. Fog is burning off quick now. But now I'm going to get home 3 hours later.

 

Check, thanks for the synopsis, but doesn't that mean that only those individuals that now have that money (or any money) in a non-qualified retirement account can roll it over to an ira? If I had invested the money in a business, let's say, then there might not be any money available to roll into an IRA.

This is a very good thing for all that experienced bk!

 

There will probably be IRS rules coming out, but I would assume you are correct.

You're going to have to come up with the cash to put into the regular IRA.
You can convert the Roth if you created one with that money.

 

"...commuting is a personal lifestyle choice..."
- Jim

"Paying your professional and well trained pilots less than they are worth is a choice."
- Jesse

 

How long has DL had UHC, or did it come over with RA?

 

I don't know exactly how long but we did have UHC for a few years before RA came on board. Before UHC I believe it was Cigna.

Denny