Question about B-plans

[SkiFishFly]

Please help me understand something about B-plans. I think I know the answer but want to be sure.

I'll use AirTran as an example with numbers from airlinepilotcentral.
First year pay is 43.00 a flight hour. At 70 hours that works our to $3010 per month.

AirTran B-plan is 10.5%. Does the company put the $316 in this account or does it come out of your $3010?

What are some of the rules about B-plans? Is it your money from the beginning? Is it similar to a 401k in that you can't touch it until you reach retirement age without paying the IRS a hefty penalty?

Thanks for helping someone who is somewhat financially ignorant.

 

[-9Capt]

Please help me understand something about B-plans. I think I know the answer but want to be sure.

I'll use AirTran as an example with numbers from airlinepilotcentral.
First year pay is 43.00 a flight hour. At 70 hours that works our to $3010 per month.

AirTran B-plan is 10.5%. Does the company put the $316 in this account or does it come out of your $3010?

What are some of the rules about B-plans? Is it your money from the beginning? Is it similar to a 401k in that you can't touch it until you reach retirement age without paying the IRS a hefty penalty?

Thanks for helping someone who is somewhat financially ignorant.

The 10.5% is in addition to your monthly pay. It is a company funded retirement plan. It is printed on our pay stubs.

There is a vesting period, as with most retirement plans. AirTran's has a 5 year cliff vesting period meaning on your 5 yr aniv. it's all yours. If you leave before 5 years you get nothing.

At AirTran. the money goes into the exact same funds as your 401k. So basicly the way it works is you contribute to your 401k (voluntary) and the company contributes money twice a month to the same funds(s) at an ammount based on your monthly gross pay (10.5%).

 

[SkiFishFly]

-9Capt,

Thanks. Appreciate the info.