Name User

Just call Fidelity...tell the 401k dept you are interested in learning about in plan conversions.

Al Czervik

You can always dump the PRSP in a traditional Roth and take the tax hit. If you’re young enough the numbers work.

Name User

You're gonna have to explain that one...it went over my head.

A Roth is post tax.
Traditional is pre tax.

There are no "traditional Roth" accounts AFAIK.

Al Czervik

Sorry. Roth IRA. (IRA: the traditional one before you made too much money )

Name User

I'm not sure what PRSP is but there are no income restrictions on Roth IRAs. There is an artificial one but you get around it by contributing to a traditional IRA (no income limits just deduction limits) and converting it right afterwards to a Roth IRA contribution. Just make sure you don't have any outstanding Traditional IRA balances. If you do, just roll them into our company AA 401k plan. Put it 95% into brokerage link if you don't like our plan options.

That being said if you don't want to contribute all of that the post tax conversion is a lot "cleaner".

Al Czervik

It’s the same thing. You are allowed a rollover election directly to a Roth IRA account even if you’ve exceeded the MAGI.

Name User

Gotcha sounds good to do if you have a down year or go out on medical or get furloughed (yikes).

FlyingHercs

Back on topic of how this post started over 2 years ago...

Any idea if getting company 401k contributions for new hires is something the MEC will consider trying to get back during these negotiations? Seems like it was taken off the table before United and Delta had new contracts and thus it wasn't needed to get new hire pay even between companies. Delta and United both do this with their current pay rates.

Someone may say "who cares over the long run?" To that my response is, compound interest cares.

Example:
Hypothetical new hire makes $83k ($88 hr 2018 rate x 73 hr long call x 12)
-16% of that is $13,280
-Let's say this new hire has 30 yrs before retirement
-Low end case: Investments make 6% average. Value of that first year 16%=$76,273
-Market average (via Dave Ramsey) 12% return=$397,867


Given numbers like that, I'd think the 16% could factor in to the decision of someone looking at AA, DAL and UAL. Love to hear others thoughts on it

Sunfish FAIP

Very strong point you just made Herc driver...I know two other guys plus myself who are on the fence between accepting a job offer at any of the three legacies. AA not providing the IRA contributions for first year FOs while UA and DL both provide the 16% has shown to be the driving force to lean away from the American CJO. Just food for though.

mainlineAF

It sucks they don’t give you the 16% the first year but that’s the driving force on which job to take? Seems excessive.

Bases, commute possibilities, retirements, etc are things don’t change contract to contract. I’d pay more attention to those.