American Airlines Pilot Retirement
You had multiple options on what to do with your retirement assets with the 2013 termination of the B Plan. Each option has pros and cons that should continue to be reviewed in comparison with your personal goals. The two most common were an IRA rollover and a transfer to your Pilot 401(k).
Distribution – a full or partial withdrawal of the account balance.
This will be reported as a taxable event for federal, and in some cases, state income tax purposes.
A distribution will also be met with an automatic 20% tax withholding for federal taxes and if taken prior to age 59 ½ may incur penalties.
IRA – a transfer or rollover of funds from your 401k plan directly to your new or existing IRA custodian in which you do not take possession of the funds.
This is sometimes referred to as a trustee-to-trustee transfer.
When done properly federal income tax will not be withheld.
An IRA can be self-managed or you can hire an investment advisor to manage the assets for you.
Pilot 401(k): transfer into the American Airlines sponsored Pilot 401(k) plan that has the option to
- self manage among existing mutual funds,
- self direct to brokerage platform or
- use JP Morgan as investment advisor to manage funds for you.
Following the 2013 termination of the B plan, Cleary Gull has specially designed a Guided Portfolio Service Program, in order to professionally manage your retirement assets in a rollover IRA.
Our GPS Services include:
- Professional Portfolio Management
- Asset Allocation
- Risk Tolerance Profiling
- Wealthcare Financial Plan
- Pre-Retirement Planning
- Quarterly Market Commentary
- Online Account Access
Call us at 877-747-1133 to discuss what option is best for you.
• Asset Allocation / Risk Tolerance Profiling
• Quarterly Pilot 401(k) Guidance
• Pension Benefits Review
• Retirement Timeline Consultation
We regularly evaluate changes in the markets, trends and overall economic environment and provide updates to our Pilot 401(k) recommendations. All you have to do is access your account and rebalance your portfolio according to the recommendations that we send to you.
We can help you analyze your A Plan annuity options to determine what is the right choice for you and your family?
- Single Life
- Joint & Survivor
- Life & Guarantee
- What is your optimal retirement date?
- How do you maximize your airline benefits?
- How to design a retirement plan you won’t outlive?
Once you have determined the right plan for you, we will also provide guidance on transitioning into retirement.
You may be interested in the following websites:
Cleary Gull’s Pilot Planning Tips
Analyst Estimates for AMR
AMR’s Quarterly Filing Form 10-Q
AMR’s Investor Relations page
(also includes a link to a replay of the Quarterly Earnings Conference Call)
Pension Benefit Guarantee Corporation
Social Security Administration
Allied Pilots Association
Federal Aviation Administration
Tricare Retiree Dental Plan
The ClearWealth® Confidential Questionnaire (CCQ) will help form the basis for your customized investment and retirement plan. By evaluating your investments, business interests, real estate, cash, income requirements, risk tolerance and other factors, we can offer a strategy that is best suited to your particular needs.
Complete your American Airlines CCQ, here.
The Roundtable Discussions are designed to assist you in planning for your retirement and are a good resource for your questions. Unlike seminars, they are informal and held in a more personal setting where your concerns drive the discussion. We encourage you to bring any questions or materials that you would like to go over in order to help you understand what your retirement will look like and how to begin creating a plan to get there. We will help answer these questions and suggest options to consider along the way. Breakfast or Lunch will be provided and they are always free to attend.
The seminars are a more formal, structured educational opportunity where we focus on the major challenges that you will encounter in your financial life as you prepare for retirement. Topics will range from pre-retirement planning, retirement planning, investments, family financial survivorship guidance to estate planning. We elaborate with detail in our presentation the challenges, benefits and potential solutions for creating a retirement plan to help you achieve the goals you want. All seminars are free to attend with breakfast or afternoon snack provided.
Spouses are welcome, but seating is limited in each of these meetings!
For more event details please click here.
*Cleary Gull does not provide legal or tax advice.