Show me a chart/graph/data point that proves the industry is being forced into that?

Average age at (insert here) is STILL mid-late 30’s. For every guy over 50-55-60 hires there’s easily more under 30.

Due mostly to the FACT is dark decade career stagnation on the civilian side as an average as well as most mil guys have doing well above the min required AD commitment due to low/non existent hiring previous.

Exclude that and it would be same/similar to pre 9/11 of low 30’s as the average age.

Regioanl pilot life expentancy was 2-3 years and most mil guys able to split after min commitment left.

 

Unfortunately my profit sharing goes directly to the business office of my kids schools.... halfway through the year when I hit the social security tax income limit I double my 401k contributions, then you don't really notice as much of a difference on the checks.

 

I dumped my PS into my 401k a couple of years ago and got burned. it is a different category of income than normal income, and I still got taxed before it went in. Better to put regular income in, and spend the PS at Shotgun Willy's or something useful like that.

 

All the usual deductions are taken out like union dues, state tax, etc, which gets federal taxed as income. Was there something different?

 

Your annual 401(k) conribution is listed on your W2 at the end of the year. When you file your taxes the 401(k) contribution reduces your taxable income. Your company retirement contributions are also listed on your W2 and are combined with other IRA's and entered on your 1040. If the combination of these cotributions of retirement funds exceed the 415 limits you will be penilized by the IRS. I was penalized a couple of years ago when my CFA suggested I buy a $6500 Roth IRA. He wasn't aware that for the last several years I hit the 415 limit.

 

Got it.

..........

 

I feel like I have a grasp on the $18k and $54k. How does the $5500 ($6500 over 50) relate into that? Part of the $18k?
Assuming you are below the Roth IRA limits and are allowed to contribute there...?

 

From the UAL MEC update on 12/22/2016:

Quote:
Profit Sharing


If a participant elects 100% of their profit sharing payment to go into the 401k, they will not see all of their profit sharing payment go into the PRAP. The reason being amounts contributed to the PRAP under 401k elections, though not subject to income tax, are subject to FICA tax. The company must hold back enough of the profit-sharing payment to cover the FICA tax on the 401(k) contribution, and the amount held back to cover FICA withholding is itself subject to Federal, State, and local income taxes, so the hold back is increased to cover those taxes as well.

Due to IRS regulations regarding special payments, such as profit sharing, federal income tax withholding will be 25% for any profit sharing amount distributed to you in your paycheck, but, as noted above, to the extent your profit sharing is deposited in the PRAP pursuant to the special 401(k) election, it is not subject to federal income tax withholding


Plus this from January last year:

An alternative strategy is too take your PS as income then temporarily up your PRAP withholding from normal income to match the PS amount.

 

More specifically, to address the issue of older pilots who get into the career late. I don't think their is a solution to that. The IRS limits are what the IRS limits are. One's age is the limiting factor as to what can be deposited into a qualifying account.

For folks who get into the career late, be advised, you have fewer years left to both accrue and invest. Likely, you knew that anyways. I hope their other (previous) jobs offered them some savings vehicles, and/or they were saving and investing aggressively since they turned 21.

It would be difficult indeed to start the profession at age 50 and retire with 2 million in a Schwab account if there wasn't prior savings.

The dark post 9-11 decade was caused, ultimately by too many RJ's, which resulted in career path stagnation. How many got out of the profession before they really got started? I hope we have learned our lesson on SCOPE relief!

 

Ahem. Age 65.