American Airlines’ Pilots Turn to Self-Directed IRAs for Investment Flexibility

April 2, 2013

In November of 2012, American Airlines declared bankruptcy and as a result, thousands of their senior pilots are now being forced to make decisions regarding their B-Fund retirement accounts. According to American Airlines, the pilots were given 3 options with their funds and were told to make a decision by early April, with the funds available to roll through June. These options include:

• Roll it into a qualified IRA.
• Roll it into the American Airlines Super Saver 401(k).
• Take a taxable lump sum distribution.

Because the 401(k) offers only a restricted choice of potential investments and the lump sum would trigger tax penalties, most of these American Airlines pilots are seeking additional information regarding IRAs and in turn, becoming increasingly interested in self-directed IRAs because of the flexibility this type of IRA provides. In fact, it has been estimated that roughly 9,000 pilots will be rolling their funds over into a self-directed IRA during the coming months.

Self-direction drastically expands your investment options from a short list offered for traditional IRAs to a wide variety of investments including real estate, tax liens, stocks, bonds, notes, mortgages, precious metals, and other investments.

We at NuView are committed to helping investors learn all they can about self-direction and how to use it to invest in alternative investments and grow their retirement nest egg. Check out our Seminars and Webinars page on our website to discover the upcoming seminars, workshops, meetings, and webinars that can help you as you seek to make wise investment choices.