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How Airline Pilots Can Break Through 401(k) Limits

Allworth helps give pilots more runway for retirement.

[Credit: Shutterstock]
Gemini Sparkle

Key Takeaways:

  • High-earning airline pilots face unique financial challenges due to a short peak earning window and mandatory retirement, making traditional 401(k) limits insufficient for maximizing tax-efficient savings.
  • A "market-based cash balance plan" is presented as a solution, allowing significantly higher tax-deferred contributions by strategically directing employer non-elective contributions after the 401(k) is maximized, often utilizing a "mega backdoor Roth" strategy within the 401(k).
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Most airline pilots are diligent savers. They max out their 401(k)s, capture every dollar of employer contributions, and stay on top of their investment allocations. Still, for many pilots in their peak earning years, even doing everything right may not be enough.

This is the central message of a recent webinar hosted by Allworth Airline Advisors, in which James Risalvato, a financial planner with Naval aviation experience, walks pilots through a retirement savings strategy that most have never heard of. The good news is, some airlines are already offering this plan.

Matt Herr

Matt Herr develops sponsored content for clients at Firecrown Media. He is a gearhead and motoring enthusiast with experience in tech, freight and manufacturing. He spends his free time hiking with his wife, son and German shepherds, or reading and writing hobby pieces.

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