E.O./S&S and prefunding match

[OldGuy@AA]

I agree.

Aside from being dependent on an entity (the company & its "union") that can always be counted upon to act in its own best interests (not ours), a pension was no more than a bargaining chip for the company. Given the simple fact the line between the twu and amr are blurred (understatement) as they are, the pension was never something I'd counted on - it could go away as a matter of "need" for the company and as we all have been shown, with only token hell-raising by our supposed representation, with a de facto cut in compensation to wash it down.

Gotta admit I didn't see this coming years ago. I always thought, as lame as the TWU is, they would protect the pension since that is the thing we are ALL here for. But I gave them way too much credit. They protected everyone who hired in during the 60s and before at our expense then dropped us in the grease. I remember Carty trying to justify paying us less than everyone else by reminding us we had a "Great pension" and other benefits. Now we have neither a pension or many benefits. Many of us will not ever be able to retire.

 

[Deleted member 14439]

No word on these mythical checks going out today. False alarm I guess.

 

[Jager]

Called JP Morgan and confirmed.. You need the number skip?

 

[AMFAinMIAMI]

Any word on the company match?

JP Morgan told me checks are on the way, we are supposed to get (2) this time one with our input and
the other the interest and earnings on the account. The second will not be taxed but we will be responsible for the taxes. JP Morgan will issue 1099 at tax time.

1-800-235-2345

 

[Deleted member 14439]

Thanks guys

 

[FWAAA]

Has anyone looked at the tax implications of these refunds of your pre-funding contributions? I'm guessing that your pre-funding was with pre-tax dollars (like retirement or health insurance premiums), which if true would mean that the entire check would be taxable income in 2012 unless you're able to roll it into an IRA or some other tax-deferred vehicle. Has the worthless union offered any help to you guys on this subject?

 

[LAX AMT]

Has anyone looked at the tax implications of these refunds of your pre-funding contributions? I'm guessing that your pre-funding was with pre-tax dollars (like retirement or health insurance premiums), which if true would mean that the entire check would be taxable income in 2012 unless you're able to roll it into an IRA or some other tax-deferred vehicle. Has the worthless union offered any help to you guys on this subject?

Prefunding was with AFTER tax dollars.

 

[Jager]

The employee contribution was post tax so we already paid income tax on the money.. The interested and dividend will require taxes to be paid on your 012 return..

When we received the Customer Awards Bonuses, You had the option to pretax that amount, if you elected to transfer it to your 401k..

Not an option with prefunding

I hear the dividend and interest sum will be around $3k.. Not a big deal in terms of taxes..

 

[bigjets]

Any word on the company match?

JP Morgan told me checks are on the way, we are supposed to get (2) this time one with our input and
the other the interest and earnings on the account. The second will not be taxed but we will be responsible for the taxes. JP Morgan will issue 1099 at tax time.

1-800-235-2345

As I understand it, the TWU hired lawyers to represent the retirees to make sure they got the company matching, please correct if I'm wrong.

 

[AANOTOK]

The employee contribution was post tax so we already paid income tax on the money.. The interested and dividend will require taxes to be paid on your 012 return..

When we received the Customer Awards Bonuses, You had the option to pretax that amount, if you elected to transfer it to your 401k..

Not an option with prefunding

I hear the dividend and interest sum will be around $3k.. Not a big deal in terms of taxes..

My dividend and interest sum was about $4100 as of two weeks ago. I hope they didn't lose it
in the market over the last two weeks.

 

[AMFAinMIAMI]

The employee contribution was post tax so we already paid income tax on the money.. The interested and dividend will require taxes to be paid on your 012 return..

When we received the Customer Awards Bonuses, You had the option to pretax that amount, if you elected to transfer it to your 401k..

Not an option with prefunding

I hear the dividend and interest sum will be around $3k.. Not a big deal in terms of taxes..

The tax liability on your earnings and interest check is on us. But here is a question? You can put money into an IRA and write it off if you don't have a defined pension plan, so if we put the earnings and interest check in an IRA
will that reduce the amount of total income for yr 2012? How much will be allowed since our pension was frozen at the end of year is the question?

 

[AANOTOK]

As I understand it, the TWU hired lawyers to represent the retirees to make sure they got the company matching, please correct if I'm wrong.

As I understand it, if the Judge terminates the retirees medical in the 1114 hearing, you will get your matching. If the Judge allows the retirees to continue with medical, it is my understanding the matching would be part of the fund that would be used to coninue their benefit.

 

[Birdman]

If the Judge allows the retirees to continue with medical, it is my understanding the matching would be part of the fund that would be used to coninue their benefit.

It's simple, if in the end our matching funds are stolen to subsidize the current retiree's medical benefits there will be another lawsuit.

 

[Jager]

The tax liability on your earnings and interest check is on us. But here is a question? You can put money into an IRA and write it off if you don't have a defined pension plan, so if we put the earnings and interest check in an IRA
will that reduce the amount of total income for yr 2012? How much will be allowed since our pension was frozen at the end of year is the question?

They answer is yes providing you do not participate in a 401k... Pre tax IRA are a great way to reduce your taxable income but in reality, Roth IRA (post tax) are the way to go.. In a Roth you will be paying taxes at todays rate on todays amount instead of the ROI amount and rate when you retire and begin withdrawing..

The way most advisers recommend is.... #1 Roth Ira's, #2 Matching Amount of 401K, #3 Max out 401K, #4 Std Ira's

 

[FWAAA]

Prefunding was with AFTER tax dollars.

Ahh, thanks. I guessed wrong.