The key is knowing that your own 401(k) contributions and United’s contributions share the same annual IRS limit. By planning your contributions strategically, you may be able to maximize the amount deposited into your 401(k), limit unnecessary spillover, and potentially receive more money in your paycheck.

Key Takeaways

• Your employee 401(k) contributions and United’s 18% contribution fill the same 401(k) bucket.

• Filling that bucket too early can cause United’s contributions to spill over into your HRA or paycheck.

• A strategic contribution approach may allow you to maximize United’s contribution while minimizing unnecessary spillover.

• Your ideal strategy depends on your age, salary, contribution rate, retirement timeline, and benefit eligibility.

• Keep reading to learn how this strategy works, see pilot examples, and understand what approach may make sense for your situation.

Understanding Your United Pilot HRA and RHA Options

In many cases, your United HRA funds can only be reimbursed for qualified medical expenses. However, with the right contribution strategy, you may be able to receive more of United’s contribution directly in your paycheck while still maximizing your 401(k).

Before considering this strategy, make sure you know which account applies to you:

HRA: Available if you are enrolled in a United health plan or have TRICARE plus a United supplemental plan.

RHA: Available if you are on TRICARE only. Unlike the HRA, RHA funds generally are not accessible until you separate or retire from United.

Aside from when you can access the funds, the HRA and RHA follow the same funding and spillover rules.

Here is what you need to know:

How Your HRA/RHA Is Funded:

United contributes $1 per flight hour to your HRA/RHA throughout the year, regardless of whether you reach your 401(k) limits.

There are two IRS limits that can trigger HRA spillover.

1. 415(c) Limit: The combined amount going into your 401(k) each year (your contributions + employer contributions) is capped at $72,000 for 2026, plus any age-based catch-up contributions.

2. 401(a) Limit: United only calculates its 18% contribution on the first $360,000 of eligible compensation.

That means the maximum United can contribute to your 401(k) in 2026 is $64,800.

How spillover works:

When your 401(k) reaches an IRS limit, United’s 18% contribution no longer goes into your 401(k). Instead, it “spills over” to your HRA.

How much spillover you receive depends on:

• Your age

• Your 401(k) contribution rate

• Your projected annual salary

If you hit the 415(c) annual contribution limit

The spillover goes into your HRA even if it exceeds the normal $10,000 annual HRA funding limit.

Example Pilot #1 (Age 49)

• Salary: $350,000

• Employee contribution: 10% ($24,500 max)

• United contribution at 18% of salary: $63,000

The combined total exceeds the 2026 IRS limit of $72,000 by $15,500.

Result: The entire $15,500 spills into the HRA. None is paid in cash.

Example Pilot #2 (Age 60)

• Salary: $550,000

• Employee contribution: $35,750 (includes the age 60–63 catch-up)

• United contribution: $64,800 (18% of the first $360,000 of compensation)

The combined contributions exceed the age-adjusted IRS limit of $83,250 by $31,550.

Result:

• $31,550 spills into the HRA.

• Because salary exceeds the $360,000 compensation limit, the additional 18% on the remaining $190,000($34,200) cannot be contributed to the retirement plan and is instead paid in your paycheck.

If you hit the 401(a) compensation limit

The HRA can receive up to $10,000 per year from this type of spillover. Once the HRA reaches $10,000, any remaining spillover is paid directly in your paycheck.

Example

Salary: $460,000

The portion of salary above the $360,000 compensation limit is $100,000.

• 18% of $100,000 = $18,000

• $10,000 goes into the HRA.

• The remaining $8,000 is paid in your paycheck.

Don’t fill your 401(k) bucket before United does:

If you max out your employee 401(k) contributions too early in the year, you fill the same IRS contribution limit that United’s 18% contribution uses. Once that bucket is full, United’s contributions begin spilling over into your HRA.

A better strategy is to let United fill as much of the bucket as possible first. Then, near the end of the year (November or December payroll), contribute only the amount needed to reach the IRS maximum via changing your 401(k) contribution on the PRAP website.

Example 1 (Age 49)

• Salary: $350,000

• Employee contribution: 0%

• United contribution: $63,000

Because the annual contribution limit is $72,000, there is no spillover.

To maximize the account, this pilot could contribute approximately $9,000 (about 2.6% of salary) later in the year to reach the $72,000 limit.

Example 2 (Age 60)

• Salary: $550,000

• Employee contribution: 0%

• United contribution: $64,800

This pilot still reaches the 401(a) compensation limit, so:

• $10,000 spills into the HRA.

• $34,200 is paid in the paycheck because it exceeds the compensation limit.

The pilot could still contribute $18,450 later in the year to reach the age 60–63 maximum annual contribution of $83,250.

A Strategy to Minimize HRA Spillover for United Pilots

For many pilots, the simplest strategy is to:

1. Set your 401(k) contribution to 0% for most of the year.

2. Near the end of the year (often December), increase your contribution enough to reach—but not exceed—your annual limit.

3. After your final contribution is made, reset your contribution back to 0% so it doesn’t automatically continue into the new year.

Work with a retirement planning expert:

Every pilot’s situation is different. Your age, salary, contribution rate, health plan, retirement timeline, and tax situation all affect whether this strategy makes sense for you.

That’s why I help United pilots build retirement plans tailored to their specific goals.

I’m grateful to work with more than 60 pilots, including many at United, helping them make the most of their retirement benefits, reduce taxes, protect their wealth, and build a lasting legacy.

If your financial goals have changed or you’d like to revisit your retirement strategy, I’d be happy to help. You can schedule a complimentary Zoom consultation here: https://go.oncehub.com/NickCol

And if you have a fellow pilot, colleague, or friend who is navigating retirement decisions and could benefit from a second opinion, I would be grateful for an introduction. My goal is simply to help more pilots understand their options and make confident decisions about their future.