In this time-sensitive episode, Certified Financial Planner and GA pilot Tim Pope unpacks the new Market-Based Cash Balance Plan (MBCBP) for American Airlines pilots ahead of the December 15 opt-in deadline. He explains how the plan captures NEC spillover beyond 401(k) limits, who qualifies, and how it differs from other carriers.

What You'll Learn from This Episode

• Plan Basics: How the MBCBP captures NEC spillover when 401(k) limits are hit—by percentage caps or dollar thresholds.
• Spill Cash Thresholds: When to expect spill cash based on whether you max your 401(k) (key earnings markers: $264k vs. $360k).
• 3-Year Election Window: Why AA's re-election lock differs from Delta, United, and Southwest—and offers added flexibility.
• Planning Flexibility: When opting out (liquidity, gains, inheritance) or in (avoiding tax drag, timing Roth moves) may make sense.
• Investment Gaps: Why lack of allocation transparency can hinder holistic planning with outside advisors.
• 401(k) vs. MBCBP: Key differences in investment control, Roth conversion flexibility, and contribution mechanics.
• Creditor & Beneficiary Rules: What stays consistent between this plan and your 401(k).
• Roth Strategy Fit: How the MBCBP can indirectly support Roth conversions by freeing up tax room elsewhere.
• Use Case Thinking: This plan isn’t good or bad—it’s a tool that must align with your financial phase.
• Deadline Reminder: Election closes December 15, 2025—locked in (or out) for three years.

Resources:

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This episode is sponsored by: Beacon Relocation

Beacon Relocation is a real estate firm helping pilots and air traffic controllers save money on their real estate transactions. By tapping into their network of over 1500 real estate agents across the country, pilots can save 20% of the real estate agent’s commission towards your closing cost on the sale or purchase of your home. Visit https://www.beaconrelocation.com/ to learn more.

Timothy P. Pope is a Certified Financial Planner™and principal owner of 360 Aviation Advisors, LLC (“360 Aviation Advisors”), a registered investment advisory firm. Investment advisory services are provided through 360 Aviation Advisors, in its separate and individual capacity as a registered investment adviser. Podcast episodes are provided through Pilot’s Portfolio, in its separate and individual capacity.

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