Thanks Jump and APC. Good info.

 

Rather than trading vacations to fund our retirement medical expenses , I would rather see the ability to put unused sick leave into the RHA -to use for retirement medical.

We had something like that once. I think it was 50% of your sick bank could be taken with for health insurance.

This way we don't screw over the junior guys waiting to upgrade, when we drop our vacation weeks.

 

Great idea.

 

Another reason to come to work sick? No thanks.

Just what we don't need is another reason for guys to hack, spew and sniffle from one end of the country to the other. Some guys are just too chicken, or duty bound to pick the phone and call in sick. Give them a financial incentive to fly sick and it will only get worse.

Do you want to increase funding your RHA? Dump your profit sharing check into your 401, increase your withholding and hit the combined max sooner in the year.

I'd love to see increased funding for the RHA, especially with all the uncertainty about health care in this country. I just don't think that swapping sick time for it is a good idea.

 

So, the choices left for those who are fortunate enough to be healthy are; leave that money behind to the company or,
Lie , and call sick when you are not....

There is nothing to show that people came to work sick when we could keep half our bank.

I think there are far less pilots here who don't care about their co-worker health than you imply.

I have had flight attendants show up sick. I called scheduling and had them replaced. Would do the same for a pilot...but never had to.

Self help is available IF, another pilot shows up sick.

Do the math and tell me what the average pilot could add to his VEBA doing as you describe..... peanuts for most and it depends on company profits and STILL leaves the sick bank on the table.

 

and if anyone is like me and wondered where the heck your RHA balance is located, it can be found on the Failing Together website under "My Info"

You're welcome!

 

I do exactly as Mako stated. I have 10 exemptions going into the new year and have 100% pretax going to my 401k. Once the pretax bucket's maxed out, I have 100% post-tax going to my 401k.

After maxing out my post-tax 401k, I change my exemptions down to 0 plus have $1k/paycheck go to taxes until I'm caught up for the year.

As far as 'peanuts,' I have put just over $23K in excess contributions into my VEBA so far this year with no vacation sellback. (787 FO on year 12 pay).

The reality of retirement medical costs is that they are large and getting bigger. We (wife, I) have Tricare and we will have to pay medicare Part B when we retire (Medicare Part B is required for Tricare at 65). Based on 2017 Part B rates, I'll have to pay $428.60/mo for at least two years (I plan on converting all taxable 401k money to Roth after I retire which will extend that cost for a few more years) and will eventually drop down to $187.50/mo x 2 (wife, me) when my wife retires. https://www.medicare.gov/your-medica...t-b-costs.html

If you or your spouse ends up in a nursing home, your VEBA will evaporate very quickly.

 

I have mine show up on the yourBenefitsresources page as a box next to all of my other medical coverage.

Go to Employee Services
Go to Benefits

Clicking on the box will give you links to drill down on the account, including contributions, sources...

 

Regarding nursing homes most of the use of VEBA funds is for pay as-you-go medical expenses like premiums, copay, care. There seems to be a fairly significant exception here with a Continuing Care Retirement Community with the "til death" capability where if (when) you get terminally sick, they provide health care to the end. If this cost is broken out separately in the contract the IRS seems to permit VEBA used as future health care in a lump sum. I would think this cost would be quite high and in this case a lot of VEBA would be quite beneficial. Mom and M-in-L both used these types of facilities. Once in, they can stay without having to change facilities.

https://www.aarp.org/caregiving/basi...mmunities.html

"The most expensive of all long-term-care options, CCRCs require a hefty entrance fee as well as monthly charges. Entrance fees can range from $100,000 to $1 million — an upfront sum to prepay for care as well as to provide the facility money to operate. Monthly charges can range from $3,000 to $5,000, but may increase as needs change. These fees are dependent on a variety of factors including the health of your loved one(s), the type of housing they choose, whether they rent or buy, the number of residents living in the facility and the type of service contract. Additional fees may be incurred for other options including housekeeping, meal service, transportation and social activities.

There are three basic types of contracts for CCRCs:
- Life Care or Extended Contract: This is the most expensive option, but offers unlimited assisted living, medical treatment and skilled nursing care without additional charges.
- Modified Contract: This contract offers a set of services provided for a set length of time. When that time is expired, other services can be obtained, but for higher monthly fees.
- Fee-for-Service Contract: The initial enrollment fee may be lower, but assisted living and skilled nursing will be paid for at their market rates."

https://www.irs.gov/pub/irs-pdf/p502.pdf

"Lifetime Care—Advance Payments
You can include in medical expenses a part of a life-care fee or “founder's fee” you pay either monthly or as a lump sum under an agreement with a retirement home. The part of the payment you include is the amount properly allocable to medical care. The agreement must require that you pay a specific fee as a condition for the home's promise to provide lifetime care that includes medical care. You can use a statement from the retirement home to prove the amount properly allocable to medical care. The statement must be based either on the home's prior experience or on information from a comparable home.
Dependents with disabilities. You can include in medical expenses advance payments to a private institution for lifetime care, treatment, and training of your physically or mentally impaired child upon your death or when you become unable to provide care. The payments must be a condition for the institution's future acceptance of your child and must not be refundable.
Payments for future medical care. Generally, you can't include in medical expenses current payments for medical care (including medical insurance) to be provided substantially beyond the end of the year. This rule doesn't apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier."

 

From my understanding, you can convert after-tax contributions to Roth at any time by calling Schwab and filling out a form. Don't have to wait until retirement.