Retention
03-08-2022, 06:29 PM
#541
Gets Weekends Off
Joined APC: Jan 2020
Posts: 235
I’m not an expert, but I did stay in a Staybridge last night….
You have to think through the dropping into 401k because once you hit the yearly limit of $20,500 you no longer get the company match and the bonus won’t be company matched because that happens when it is payroll deducted on your regular check.
So you lose out on a lot of money the company would give you if you are taking advantage of the 401k.
If you aren’t going to max out the $20,500 then you could wait until year end and make a contribution of the remainder using the bonus and you’d get all of the company matching throughout the year.
You have to think through the dropping into 401k because once you hit the yearly limit of $20,500 you no longer get the company match and the bonus won’t be company matched because that happens when it is payroll deducted on your regular check.
So you lose out on a lot of money the company would give you if you are taking advantage of the 401k.
If you aren’t going to max out the $20,500 then you could wait until year end and make a contribution of the remainder using the bonus and you’d get all of the company matching throughout the year.
03-09-2022, 05:02 AM
#542
Gets Weekends Off
Joined APC: Feb 2022
Posts: 118
True, but your Fidelity account allows for different IRAs not associated with your 401k. So yes, it is a possibility.
03-09-2022, 04:22 PM
#544
Gets Weekends Off
Joined APC: May 2006
Position: Left Seat
Posts: 279
For those thinking that turning down the retention bonus and sitting back to see all the LCC’s and majors banging at your door after a year or two at a regional……. you might want to evaluate the world issues at hand. Gas prices soaring with no end in sight (see 2008) until early next year, war on the horizon and a pandemic still here (as much as we feel we are done with it). The landscape will change in the blink of an eye. Thinking your entitled to a job at a major after 1 or 2 years is foolish. Upgrade and learn something in the left seat. When the music stops (and it will sooner than later) that bonus money will serve you and your family well, instead of wishing you took the bonus because it’s canceled due to “unprecedented “ circumstances. To many young FO’s haven’t been chewed up and spit out yet by this industry……… it’s coming. Don’t look back and wish you took the bonus…listen to those who have been around for a while. Just saying keep your eyes open, this industry can turn on a dime. Best of luck whatever you decide!
03-09-2022, 04:45 PM
#545
Gets Weekends Off
Joined APC: Oct 2013
Posts: 507
For those thinking that turning down the retention bonus and sitting back to see all the LCC’s and majors banging at your door after a year or two at a regional……. you might want to evaluate the world issues at hand. Gas prices soaring with no end in sight (see 2008) until early next year, war on the horizon and a pandemic still here (as much as we feel we are done with it). The landscape will change in the blink of an eye. Thinking your entitled to a job at a major after 1 or 2 years is foolish. Upgrade and learn something in the left seat. When the music stops (and it will sooner than later) that bonus money will serve you and your family well, instead of wishing you took the bonus because it’s canceled due to “unprecedented “ circumstances. To many young FO’s haven’t been chewed up and spit out yet by this industry……… it’s coming. Don’t look back and wish you took the bonus…listen to those who have been around for a while. Just saying keep your eyes open, this industry can turn on a dime. Best of luck whatever you decide!
Be aggressive, get your apps out there. We might not see times like this again. Good luck!
03-09-2022, 04:58 PM
#546
Gets Weekends Off
Joined APC: May 2006
Position: Left Seat
Posts: 279
You make some valid points, but where I disagree with you is if a major/LCC is going to offer you a job without upgrade you need to put yourself in a position to take that offer. Yes, the music will stop, but where would you rather be, in a regional or a major/LCC when that happens. Regionals tend to be a lot more vulnerable in times like those. Think about it and if you decide to take the money be prepared to pay it back when that phone rings. It will be a small price to pay for a better future.
Be aggressive, get your apps out there. We might not see times like this again. Good luck!
Be aggressive, get your apps out there. We might not see times like this again. Good luck!
Touche’….. best of luck to all!
03-10-2022, 06:29 AM
#547
Line Holder
Joined APC: Mar 2022
Posts: 48
For those thinking that turning down the retention bonus and sitting back to see all the LCC’s and majors banging at your door after a year or two at a regional……. you might want to evaluate the world issues at hand. Gas prices soaring with no end in sight (see 2008) until early next year, war on the horizon and a pandemic still here (as much as we feel we are done with it). The landscape will change in the blink of an eye. Thinking your entitled to a job at a major after 1 or 2 years is foolish. Upgrade and learn something in the left seat. When the music stops (and it will sooner than later) that bonus money will serve you and your family well, instead of wishing you took the bonus because it’s canceled due to “unprecedented “ circumstances. To many young FO’s haven’t been chewed up and spit out yet by this industry……… it’s coming. Don’t look back and wish you took the bonus…listen to those who have been around for a while. Just saying keep your eyes open, this industry can turn on a dime. Best of luck whatever you decide!
03-11-2022, 07:42 PM
#549
On Reserve
Joined APC: Aug 2017
Posts: 10
Net wash.
I hate airing or seeking financial advice in a public forum. But here goes. I also spoke to my financial advisor this week. While he prefaced he is not a accountant/tax advisor, he recommended taking the bonus even if there is a chance i may have to pay it back. All things being equal is to try and receive, and if needed repay it in the same fiscal year. If you receive the bonus they will automatically take out taxes when they pay you, so you’ll actually likely see around 65% of the initial sum. If you have to repay the full amount back to the company, at tax time it should look like you initially overpaid your taxes by 35%. So if you do your taxes correctly it should come out as a wash, if you pay it back.
03-12-2022, 03:55 PM
#550
Gets Weekends Off
Joined APC: May 2017
Posts: 1,802
I hate airing or seeking financial advice in a public forum. But here goes. I also spoke to my financial advisor this week. While he prefaced he is not a accountant/tax advisor, he recommended taking the bonus even if there is a chance i may have to pay it back. All things being equal is to try and receive, and if needed repay it in the same fiscal year. If you receive the bonus they will automatically take out taxes when they pay you, so you’ll actually likely see around 65% of the initial sum. If you have to repay the full amount back to the company, at tax time it should look like you initially overpaid your taxes by 35%. So if you do your taxes correctly it should come out as a wash, if you pay it back.
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