Delta’s MBCBP is also a conservative investment mix so I’m not sure what you mean?

 

Just to be clear, the RHA / Active HRA is tax advantaged money. I’d like “another venue” as well, but this LOA temporarily eliminates the freedom to choose which venue.

I’m not in love with the lower-cap company PRAP contribution, but I only see this being a real issue for folks that aren’t contributing. It could be more of an issue over time as IRS limits rise though if it isn’t concurrently raised. In any event, it sure looks to me that the lower PRAP cap is simply an outcome of having the eventual optionality of splitting funds between a MBCBP and RHA/Active HRA anyway; therefore, an outcome of our UPA that wasn’t clear at the time, but this LOA will have to cover.

Although while it is low risk I think the potential for an unexpected tax liability in the event the IRS doesn’t like something about this later should be part of the decision as well.

I don’t care how folks vote, but I have to say of everything I’ve ever voted on this some fantastic first world problem stuff that is likely to be okay either way it goes.

 

Their's is slightly better with a 40/60 mix. Not much better, but better.

 

Agree with that.

 

Come on now.

All that means is a Delta pilot’s overall asset allocation in other investment accounts may need less adjusting toward equities.

 

I wasn't trying to imply any different. Just stating that their CBP, for those that opted in, is slightly more aggressive, but not by much.

 

Delta doesn't limit company PRAP contributions to 46.5K. R&I answer as to what to do to make up for the conservative 12.5 forced to MBCBP is to be more aggressive in PRAP. That doesn't do jack for those that already have aggressive PRAPs.

 

They don’t have RHA / Active HRA option. You do. They also don’t have annual election optionality between or in combination of two tax sheltered accounts. You will. Having the luxury of this optionally may require a reduced company PRAP cap regardless of this LOA.

 

The key word in that is "May". Why rush to change the RHA option and limit 401k contributions before we know what the rules are going to be from the IRS?

 

For those of you with 100% overall equity allocations that are angry the CBP is conservative and can't lose principal I can only suggest this: Take the win and go live life, either now or in 1-2 years after IRS approval. It doesn't matter to me. This was never going to be an account with asset allocation control.