What exactly is the PRAP?
 

Thought I elected out, but it seems chunks are missing from my paycheck for retirement.

Now I'm just thinking maybe I'll leave it. Is there a difference between contributing to the 401K (above and beyond the company contributions) and the PRAP or are they the same thing.

What's your take on pilot contributions first year?

The same thing.

The PRAP (Pilot Retirement Account Plan) is the acronym for the entire plan and any voluntary contribution is a subset of the plan.

As much as you can afford. The whole idea is to put $$$ in the account and let it compound tax free (until withdrawal) so the more time it can sit in the PRAP the better.

That said, first year pay is what it is so do what you need to do for your family budget. Just make sure to start (or increase) your voluntary contributions the 2nd year.

I think if you don't go into the Schwab page and opt out that it will default to taking out 5% (?). Also, you need to go onto the Schwab page in order to have the 5% (or whatever percentage you pick) come out post-tax instead of pre-tax (Roth 401k v. the traditional 401k). It makes sense for a lot of people to pay the tax now rather than later, especially if you're on first year pay. You'll still have to pay tax on the company's contributions later, but you can pay the tax now for your own contributions.

PRAP is Pilot Retirement Account Plan

It is a combination of Company contributions (9% B Fund and 7% C Fund) and employee contributions.

You cannot make post tax contributions until you have maxed out your pre tax contributions.

You can however, make contributions to the Roth 401(k) as opposed to traditional 401(k).

Same limits apply and possible to do a combination of traditional and Roth 401(k).

By far, most contribute to traditional 401(k) as opposed to Roth.

The default pre tax contribution rate for new hires is 5%. If you can afford it, don't opt out.

The largest account balances are a result of contributions over investing prowess. Those that save additional every month have substantially higher balances.

prap
 

PRAP is Pilot Retirement Account Plan

It is a combination of Company contributions (9% B Fund and 7% C Fund) and employee contributions.

You cannot make post tax contributions until you have maxed out your pre tax contributions.

You can however, make contributions to the Roth 401(k) as opposed to traditional 401(k).

Same limits apply and possible to do a combination of traditional and Roth 401(k).

By far, most contribute to traditional 401(k) as opposed to Roth.

The default pre tax contribution rate for new hires is 5%. If you can afford it, don't opt out.

The largest account balances are a result of contributions over investing prowess. Those that save additional every month have substantially higher balances.

This. This. This.

It's the long game, folks.

It's on the ALPA site. Go to the R&I committee page and you'll see a link for "Introduction to the PRAP plan" It's all spelled out there.

Schwab will give you one free consultation/year I believe. They take a look at your assests and provide advise via a 3rd party portfolio analyzer. Includes look at how much % to put in 401K and Roth 401K. Well worth doing.

R&I guy so I see the reports on holdings, investments, balances etc

I will look to see if I can find the breakdown for you

Its the last good deal at UA. Not as good as the pension, but it can't be stolen as easily.