The DPSP playbook,
finally explained.
Direct Contribution. Money Purchase Pension. PCO. Voluntary Deferred Comp. Delta gives its pilots one of the most generous packages in the industry — and one of the most confusing. Here's what I tell the Delta pilots I work with.
The DPSP levers most pilots miss.
Capping at 415(c), not 402(g)
The IRS limit you actually care about for total annual additions is $70,000 in 2026 — not the $23,500 elective deferral. The 18% DC pushes you past 402(g) without using your own dollars.
After-tax → in-plan Roth conversion
Every Delta pilot can do a mega backdoor up to the 415(c) ceiling. We schedule conversions monthly so you don't pay tax on growth between contribution and conversion.
Bracket-aware Roth vs. pre-tax mix
At First Officer pay, Roth wins. At wide-body Captain pay, pre-tax usually wins. We model the crossover annually and shift the mix.
Voluntary 401(k) vs. NQDC
If you're maxed and still over the limit, deferred comp can be the right answer — or the wrong one if you don't trust Delta's solvency in 30 years. We run the math both ways.
Pension lump-sum vs. annuity at retirement
The Money Purchase Pension election is irreversible. We model your specific number against current rates 24 months before the decision window.
PCO timing & cost basis
Profit-sharing is treated as W-2. We coordinate with your CPA so it doesn't push you into AMT or kill a Roth conversion ladder you've been building for years.
Same airline, different pilots.
A 32-year-old narrow-body FO and a 58-year-old wide-body Captain are both "Delta pilots." Their plans should not look the same. Mine don't.