MBCBP implementation announced…
07-07-2023, 01:20 PM
#352
Gets Weekends Off
Joined APC: Jul 2010
Posts: 3,371
Your option for lowest likelihood of sub optimal outcomes is opt out and put spill cash in VOO or equivalent. Opting in over 24 years is a LONG time to lose control of your money. If you are earning over $330,000 from Delta with 24 years til the in service withdrawal option, there are many options for the money.
You may want to save up that spill cash for a PLOA and take a round the world sailing trip while you are still young enough to do it.
*My judgement is skewed by a decade of taxable investments that have outpaced the after tax (and even pretax) returns of every one of my retirement savings accounts.
DYODD YMMV
Other than buying a Miata with spill cash, there are no bad decisions on the MBCBP.
Your option for lowest likelihood of sub optimal outcomes is opt out and put spill cash in VOO or equivalent. Opting in over 24 years is a LONG time to lose control of your money. If you are earning over $330,000 from Delta with 24 years til the in service withdrawal option, there are many options for the money.
You may want to save up that spill cash for a PLOA and take a round the world sailing trip while you are still young enough to do it.
*My judgement is skewed by a decade of taxable investments that have outpaced the after tax (and even pretax) returns of every one of my retirement savings accounts.
DYODD YMMV
Other than buying a Miata with spill cash, there are no bad decisions on the MBCBP.
I should be doing more than 340k for the next 29-31 yrs (depending on age 67). I’m already a CA, and thinking to use the spill over for either life enjoyment or investment in other things like real state etc.
07-07-2023, 01:35 PM
#353
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,614
I'm closer to 59.5, so I'm taking the dues arbitrage route. I'll be spilling low 5 figures until making the jump from WBB to WBA in my late 50s. (or 60 if age 67 passes) which won't add up to much by the time I can withdraw.
07-07-2023, 01:53 PM
#354
Gets Weekends Off
Joined APC: May 2015
Position: A350 Both
Posts: 7,292
That's just a really ignorant statement to make. I couldn't care less what you do, and I personally hate the way ya'll are forced to make this career affecting decision on a one time basis, but to say that you won't generate spill over cash years from now is just a stupid thing to say.
07-07-2023, 02:02 PM
#355
Gets Weekends Off
Joined APC: Sep 2017
Posts: 997
That's just a really ignorant statement to make. I couldn't care less what you do, and I personally hate the way ya'll are forced to make this career affecting decision on a one time basis, but to say that you won't generate spill over cash years from now is just a stupid thing to say.
07-07-2023, 02:05 PM
#356
Gets Weekends Off
Joined APC: Apr 2018
Posts: 3,238
That's just a really ignorant statement to make. I couldn't care less what you do, and I personally hate the way ya'll are forced to make this career affecting decision on a one time basis, but to say that you won't generate spill over cash years from now is just a stupid thing to say.
But let's say I make 400k a year (which would take a healthy amount of work and I'm lazy currently). Anything over 330k generates spill cash at 18% in this contract. So that's 12.6k. Less when the IRS progressively raises that 330k limit as they do every year.
07-07-2023, 02:06 PM
#357
Out for a bit
Joined APC: Feb 2023
Position: On Leave
Posts: 17
How did you find WHERE to opt out? I spent a long time on Deltanet trying to find it and gave up.
07-07-2023, 02:41 PM
#359
On Reserve
Joined APC: Jan 2017
Posts: 18
The biggest hangup is limiting the in service withdrawal to Jan 1st. If it were 59 1/2 and any withdrawal day like a typical plan it would be much better. Jan 1st is the worst day for financial decisions that require tax planning. A December withdrawal would allow 11 months of hindsight.
The two step workaround looks like making the election for a Traditional IRA rollover and then taking a taxable withdrawal later in the year if desired from the IRA.
Thanks for the correction about the contract.
The two step workaround looks like making the election for a Traditional IRA rollover and then taking a taxable withdrawal later in the year if desired from the IRA.
Thanks for the correction about the contract.
couldn’t you just roll it over to your IRA without it being a taxable event then take the money out of your IRA anytime during the year as needed?
I don’t think Jan 1 is the boogey man you are making it out to be
07-07-2023, 03:48 PM
#360
Gets Weekends Off
Joined APC: Feb 2020
Posts: 793
"Q: What if I do not wish to participate in the MBCBP, and would like to keep my retirement benefits as they currently are?
A: You may indicate your preference to maintain status quo benefits and not participate in the new MBCBP. You must take action by submitting your status-quo benefit form on the Delta MEC MBCBP website (http://dal.alpa.org/mbcbp). The status quo election is offered on a one-time basis, and is irrevocable after the window closes at 12:00AM Eastern on August 1, 2023."
A5S
Thread
Thread Starter
Forum
Replies
Last Post
