Pilot Program for US Airways
Download our RSP Termination Decision Guide to learn more about what you can do with assets in your Legacy US Air RSP.
There are different options on what you can do with the assets in your RSP. Each options has pros and cons that should be reviewed in comparison with your personal goals. The IRA and Pilot 401(k) are the two most common choices.
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 your Pilot 401(k) plan. The plan has four tiers of investment options:
- Tier 1 – Target Date Funds: A diversified all in one mix of stocks, bonds and other investments included in tiers two and three that automatically adjust the fund’s asset allocation as you get closer to the target date.
- Tier 2 – Index Funds: These funds attempt to track the structure and performance of various market indices such as the S&P 500 Index.
- Tier 3 – Actively Managed Funds: These funds attempt to outperform various market indices such as the S&P 500 Index.
- Tier 4 – Self-Directed Brockerage Account: Fidelity BrockerageLink gives you access to thousands of funds and investment options allowing you to design a customized retirement portfolio. It is also possible for you to retain a professional investment advisor to manage the account on your behalf.
Our Guided Portfolio Services (GPS) Program is for those looking to have their retirement assets professionally managed in an IRA or their Pilot 401(k).
GPS provides the following services:
- 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 learn more about our GPS Program, and which option is best for you.
Or, you can get started by filling out our GPS application.
With changes to your plan, your Pilot 401(k) is the cornerstone of your retirement planning. The sooner you begin to create your financial and retirement plan and focus on managing your money, the more opportunity you will have to retire successfully.
You have multiple options on what to do with your retirement assets. Each option has pros and cons and should be reviewed in comparison with your personal goals.
Self-manage among existing core plan investment options,
Self-direct in BrokerageLink, or
Use a third party investment advisor to manage funds
We surveyed pilots on their retirement planning and 64%* said they aspire to work with an advisor to help meet retirement goals. To help put you on track for retirement Cleary Gull Advisors has specially designed the ClearWealth® Pre-Retirement Program for US Airways pilots.
Call us at 844-4MY-401K or email us to discuss what option is best for you.
- 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 CCQ, here.
*Cleary Gull does not provide legal or tax advice.