SWA Contract - How good is it?

[PCL_128]

Difference is we get to keep ours reguardless what happens to the company. I truly hope you still have yours at the end of your career, hard to tell these days.

There's no difference there. B-funds are in your own name and aren't at risk if the airline goes out of business or files bankruptcy. It's your money.

 

[PCL_128]

PCL,

Why are B-plans "far superior" to a matching 401k? - I mean, Besides the fact you have to contribute your own money to get the match

That is all the reason you should need. You shouldn't have to contribute a dime of your own income if you don't want to. That should just be icing on the cake, not your base retirement plan.

 

[momalley81]

That is all the reason you should need. You shouldn't have to contribute a dime of your own income if you don't want to. That should just be icing on the cake, not your base retirement plan.

In my AA 11% B-fund I had NO option where my money went.

At least in my SWA 401K I can control where my money goes.

B-fund's are nice but they are not "FAR SUPERIOR" to 401k's.

 

[PCL_128]

In my AA 11% B-fund I had NO option where my money went.

That's just a bad B-fund then. Most B-funds include many investment options and some even include self-directed brokerage accounts that allow you to invest in just about anything.

 

[BottomPlug]

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[momalley81]

That's just a bad B-fund then. Most B-funds include many investment options and some even include self-directed brokerage accounts that allow you to invest in just about anything.

Exactly. My SWA 401k does. (It even has a self directed brokerage) My AA B-Fund does not.

But to say B-fund's are "FAR SUPERIOR" to 401k's is quite a bit misleading. All B-funds are not created equal.

However as a third year F/O, I would rather have 7.3% of $130,000 versus 10.5% of $65,000

 

[vixin]

However as a third year F/O, I would rather have 7.3% of $130,000 versus 10.5% of $65,000

Can you say? OUCH!

 

[momalley81]

Are there HCE vs NHCE rules for B-Funds?

Yes, there are HCE rules in place for B-funds.

B-Funds are far superior to 401K plans.

No they aren't. I have both. I should know.

BTW, why did you erase your snappy comment? Looked it up for yourself and realize you didn't know what you were talking about?

 

[PCL_128]

However as a third year F/O, I would rather have 7.3% of $130,000 versus 10.5% of $65,000

No argument there. But there's no reason why your wildly profitable company can't provide you a good B-fund so you don't have to contribute your own money to retirement if you choose not to.

 

[JoeMerchant]

No 401k match is ever comparable to a B-plan. B-plans give you money without you having to contribute a dime of your own money. You only receive a 401k match if you contribute. There are also more restrictions on 401k contributions than B-plan contributions. B-plans are far superior to 401ks.

I thought we don't compete with one another....You sure are worried about what SWA gets.....