Funds in a 401K, IRA which are tax deferred will owe tax if they are left to your kids. Not right away but RMD are required.

You have cash or other investment accounts the $13M is true. Primary residence is included. If you have a home worth $4M and it is paid off. The day you die assuming your spouse predeceased you, the tax basis will be set on the value of the home. They would get the full $4M tax free. When they sell it if it increases in value to say $5M then they would pay tax on the gains of $1M.

So passing a home is great tax benefits, especially if you had the home and your cost basis is low and you would have paid gains on anything over $500k.

yes it is. Exemptions with irs blessing are common

New video with NC Gustafson says the company won't offer early retirements because they would be losing yes voters. Y'all sure the pension isn't divisive?

the kids empty your 401K, pay the taxes with the lump sum, and walk away with a crap ton of money they woulda never otherwise had. How is that a bad thing?

How about you spend your money how you want and let everyone else do what they want. You came here knowing we had a pension. Should have gone somewhere else if you wanted a bigger b fund to give to your kids. It is a pension not a trust fund.

You are mostly correct, but workmans comp isn’t super common and kind of confuses the math. If you do receive it, it does offset the total.

Just to clarify, if your highest 12 months in the last 36 is $400k, you will receive $200k/year once on LTD. You will receive 17% of $400k into your 401k (at all stages of disability) until retirement age or back to flying status. The 17% turns to 18% in 2026.

Please don't correct JustInFacts. Make him do the work.... but he's really all about "Noworkallplay".


Delta P.W.A. Section 26.C.3.b

If the pilot or the 13 B. 3. pilot is receiving long-term disability benefits, the pilot or the 13 B. 3. pilot will receive Company contributions to the 401(k) Plan on the same basis as a pilot on active payroll status, but using as earnings the amount of the disability benefit less income from employment that exceeds the calculated disability amount, if any, the result of which will be multiplied by two.

I didn't mention offsets..... I said Delta's LTD wasn't capped at the IRS limits like it is at FedEx. So Delta pilots truly get 50% LTD. Meanwhile, FedEx pilots will only receive 50% of $350k in 2025 (once they transition down from 60% after two years). For a pilot earning $500k, that is a significant LTD difference of $175k (FedEx) versus $250k (Delta). All the while, a FedEx pilot receives ZERO 401k contributions while out on LTD!

that's not what it said at all. Did you even listen to it? It said they think a TA will take care of the overmanning and no need to offer early retirement. They've never offered it to pilots...ever...never even interested. Gustafson knows that.

Just for formation purposes, your first rmd starts on April 1 following the year you turn 73 and in 2033 it goes up to 75. Seems like it should be enough time to plan.

Delta: 50%, no cap, no offsets, DC twice the benefit amount, minimum payment floor.
United: 50%, cap at 50% of 1,026 hours, no offsets, DC twice the benefit amount.
American: 50%, no cap, no offsets, DC based on the pilot’s average monthly compensation.

FedEx: 60% (50% >24 mo.), capped at 401(a)17, offsets, no DC.

At Delta (American and United also), you can rollover the mbcbp the year you turn 59.5 and every year thereafter. Also, at United, until the MBCBP is implemented HRA/RHA spill from the IRS 401(a)(17) limit is capped at $10,000. Spill above that amount is paid as cash to the pilot. They are also asking the IRS to allow yearly selection of which account to spillover into.

Yes, this argument goes both ways. I'm sometimes reminded of this when complaining about some below industry standard work rule. They'll tell me, well you knew or should've known the contract when you came here, or, then go apply at Delta. So I can turn around and say the same thing about the pension, you knew what the pension was when you accepted the job. No, everyone that came here should want to improve the contract, whether that is QOL, benefits, retirement, or scope. They should ALL be improved. That is only done by pilots here.

To clarify, he said, "At this point, right now, they don't want you to go out early, right now. Because when I get the TA, if you went and I got the TA passed your normal retirement date, well they just forfeited your yes vote. So both sides, we're going to be counting votes. And I think they're down to counting votes, sure. And because there's been a huge demographic shift since the ratification. And I think that's what's going on there."

https://youtube.com/clip/UgkxgMsOGHC...GCpTnhaifSbYxm