BobZ

No. You cant cash out the 401k now.

This goes to the thought of having too much money in self directed payroll accounts. See....its ur money, but you are not the final authority on your account. The plan administrator is. And that is delta air lines.

There are only specific conditions that afford withdrawal before age 59.5..

1. You get fired.
2. You quit.
3. You roll to LTD...in which case a full withdrawal to a qualifuing IRA is allowed.

There is a hardship withdrawal feature. You must plead ur case in writing to the plan administrator who will determine if and how much they will allow. Its never 100%.

Fyi....paying your mortgage isnt a qualifying hardship withdrawal reason.

Oh. You may borrow from the 401k. I think a max of $50k wth 48month repayment. Idk if still the case.. But having a loan out used to restrict investment options...ie..no brokerage link

Denny Crane

Disregard...

sailingfun

So you would have been against the targeted DC plan we had to try and help the junior pilots. You would have been against the 205,000 FAE plus up to help the junior pilots. You would have been against the months of service minimum to try and help the junior pilots. You would have been against getting furlough time counted toward longevity to try and help the junior pilots. You are however for providing some pilots better retirement than other pilots.

sailingfun

I believe the restrictions you quote are not from the plan administrator. They are required by the IRS for the plan to be taxed deferred.
Be aware that at 59.5 you can move the money without penalty however you lose some legal protections even if a direct rollover.
Here is one of the better discussions on the pros and cons of moving money. If you have possible legal liabilities like teenage drivers or a doctor spouse take note of the protections from lawsuits.

RonRicco

We also have an “in service withdrawal” feature which allows you to take a certain portion out and roll it over if you like.

Trip7

This highlights a big issue not only among pilots but affluent Americans in general: High Networth but unable to generate any usable cashflow off their networth because the majority of it is locked in their 401k or Value of their home.

I've discovered those who use their networth more efficiently reach financial freedom much quicker. I want to be able to take a KLOA any time it's being offered so every month I track my Usable Networth which cannot include 401k or House. I no longer contribute a dime to my 401k. I let the company do all the heavy lifting and take my cold hard earned cash and invest it. IMO, much easier and more efficient than making all these elaborate attempts to avoid taxes.

Sent from my SM-G975U1 using Tapatalk

Spudhauler

Remembering the past is great, and as a furloughed guy I was thankful and appreciative of the things done to help us. That does not mean, a decade and a half after things went south, that I want to begin dividing the pilot group up. I don't think that trying to make one self defined group their version of whole at the expense of the rest of the pilot group is something that will work. If you do, great; go vote accordingly. Also, if it makes you feel better to take a paragraph I wrote and turn that into some sort of us versus them thing, knock yourself out. I am comfortable with my opinions and won't lose sleep because someone may have different ones.

sailingfun

Forgot the link about 401K withdrawal pro’s and con’s.

https://www.nerdwallet.com/blog/inve...v_sidebar_link

Gunfighter

A major issue I have with "making deadzoners whole" is when retired pilots are ignored. IF, big IF, we are doing some sort of targeted retirement for those who lost pensions, the only fair option includes retired pilots. I can't get behind righting the wrongs of the past if it doesn't address the group who was wronged.

As far as the MBCBP goes, this is a major cost savings initiative for the company and should be considered in valuing the contributions. If rough numbers, a 4% increase in pay would be the same net cost to Delta as a 5% MBCBP contribution. We won't see those numbers at the line pilot level, but I expect our negotiation team is looking at the entire picture. Simply converting DPSP Cash to MBCBP is a huge cost savings for the company, with limited benefit to the pilot group.

Gunfighter

This is so often overlooked as people try harder to save on taxes than they do to build a retirement income. There are many tax favored investment options available outside of retirement accounts. Real estate is the most often cited one. It can provide spendable cash flow long before mandatory retirement age.

Holding an income producing asset for 5-10 years, then executing a cash out refinance is a phenomenal way to access tax advantaged money. This approach puts a great deal of responsibility on the individual vs relying on the stock market (401k) or the company (pension), but accepting that responsibility can produce exceptional rewards.