When you hit $18.5k, set contribution rate to zero, take that sum and set up pay allotment to 529 plan.

 

Unless you know for a fact that there is someone that you're willing to pay for college for, 529 plans are crap. They cannot be used as a tax shelter for retirement. There are penalties built into the plans if you try that.

 

I wasn't going to get into that (agree), just giving the poster an option.

 

That 200K average is based on the average adult. Pilots and their spouses (except from IAH ) are usually very healthy. So the amount you would need in VEBA would be considerably less.

 

Except the RHA is not controlled by us, it is controlled by a board made up of a few company and ALPA turds, and we don't have a say. Sounds like another A plan type fiasco to me.

 

understood.
I sent an email to my financial planner to inquire about the VEBA and our contributions to see how that fits into the plan.

I agree, I don't like plans whereby the money isn't totally controlled by the individual plan owner.

If anyone who knows the history of the Continental Pilots Retirement "freeze" and one guy, Jacques Lapointe controlled the investments, then you know the risks of having a single point of failure. I don't know really what our ALPA people can do, or not do except monitor and advise. I am also not sure as to what the qualificaitons are of our ALPA people to even handle this. Maybe need a capital investment firm???

The real issues for me are:

1. Delta pilots said no on the raise. They want more.
2. How do we and others insure the moneys not controlled by the individual plan owners are safe-guarded against either bafoonery, or thievery.

Kind of interesting how Larry Kellner kept Lapointe to work for him at his new Emerald Creek Group. This guy amazes me how he killed our A fund and he not only kept his job, but his boss Kellner keeps him around.

 

Friends over there are pretty firm that they will give no concessions on PS. And there is one in this deal about lessening the PS DC. They are slightly less zealous on scope. They keep telling me we have a whole lot more WB flying.

One of the big reasons i chose to come here was of the 4 majors, UAL has the least contentious pilot group internally. Those DAL guys have issues wrapped in issues and no consensus way ahead except don't touch my PS. I don't think the UAL ALPA is ever going to be the family reunion, but it is going forward. And the folks i disagree with most of the time have a lot of knowledge that i have tapped into. Those other places, not so much.

And we may never get a penny of Delta catch up, but we got it in the contract and that is huge. We make it better next time. And put an automatic 4% raise in January 1st of every amenable year too.

 

Other issue with the Veba is when you die it does not pass to your estate just back into the fund for all the other pilots. Also it takes 2 pay cycles for the 401k contribution to take effect when changed so waiting till you hit the max and then selecting zero will put at least $1500 or more into the Veba

 

You know Probe - name calling? It does get in the way of explaining why the RHA/VERBA is like the defunct A plan. Would you care to explain the why it was created and who benefits from these accounts.

The important thing to remember is the plan is optional and not for everyone. For some, pay the tax - take the money and place it a tin can - plant in a flower pot and watch it grow. For others, the plan has been discussed in creditable ALPA publications and the ALPA R&I committee will answer questions and point you in the direction of these publications without the unnecessary name calling you seem to favor.

 

So, If I contribute to my VEBA, and I die, my money just goes away to people that aren't in my family? Shouldn't that be against the law?

I was told that all moneys over the IRS limits annually will go into the VEBA. You mean you can direct the money to go elsewhere???

Does my estate have the standing to sue for those moneys? My surviving spouse can't use the VEBA money?

hello ALPA.....

Maybe we should kill the VEBA, and just give us the cash to invest on our own.........