Recent changes to airline 401(k) plans—especially the Roth Nonelective Contribution (NEC) option—have created new opportunities and new confusion for pilots and airline professionals. In this episode, we break down what the Roth NEC actually is, how it works at airlines like Southwest, and why simply ignoring your elections could mean missing out on valuable catch-up contributions. 

You’ll learn how much Roth might make sense for your situation, who should consider Roth (and who shouldn’t), and how to think about taxes without letting emotion drive the decision. We also walk through the catch-up rules, when Roth strategies help and how to balance today’s tax bill with your long-term retirement reality so you don’t end up worse off in retirement than you are now. 

What You’ll Learn In Today’s Episode:

• What the Roth NEC option actually is. 
• How airline 401(k) changes affect you. 
• The difference between Roth and NECs. 
• How Roths are taxed today vs retirement. 
• The catch-up contribution rules explained simply. 
• What happens if you don’t make an election. 
• How much Roth may be appropriate. 
• When Roth strategies don’t make sense. 

Ideas Worth Sharing:

• “There are many tools in the tool-shed to cover your particular financial goals and it’s important to consider them all.” – Andy Christopher
• “Tax is a very emotional issue.” – Charlie Mattingly
• “You don’t want to get to retirement worse off than you are right now in terms of taxes.” – Charlie Mattingly

Resources In Today’s Episode:

• Charlie Mattingly: LinkedIn
• Andy Christopher: LinkedIn
• The Pilot Wealth Index

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