American
Airlines declared bankruptcy in November 2012. More than 9,000 senior pilots
are being asked to either roll their “B fund” retirement funds into an IRA or a
company 401(k), or take a lump sum cash distribution. Many pilots are choosing
to put their funds in a self-directed IRA, instead of taking a tax-burdened
cash distribution or enrolling in the company 401(k) that offers few
investments options.
The
self-directed IRA is a viable choice for these pilots besides the fact that it
is likely to incur the least amount of payments, fees and taxes out of the
options presented by the airline. A self-directed IRA will allow pilots to
choose their investments and diversify their accounts with assets in real
estate, precious metals, private equity, publicly traded securities and more.
Most
pension and retirement plans are written so that the employee doesn’t get many
choices about where to invest his or her funds. This development for American
Airlines provides a great opportunity for pilots to roll their funds over into
a self-directed IRA account and investigate the thousands of investment options
available.
With
change comes opportunity—New Direction is available to help pilots take
advantage of this opportunity.
New
Direction IRA can help pilots navigate the investment of their IRAs. With more
than 10 years of experience, an easy online portal for clients and a database
of knowledge unparalleled in the self-directed IRA industry, New Direction
provides a unique opportunity for pilots looking to invest their B-fund
retirement accounts.
We
handle the bookkeeping and administration of your account, you choose the
investments.
Like all investments, due diligence is required to decide what will work best for your IRA and its investments. New Direction IRA can help with the administration and bookkeeping of your IRA, and will ensure your transactions and/or conversions are done according to IRS code.
