In this episode, Charlie Mattingly, CFP® | MBA and Andy Christopher, CFP® | CFA® | MSF dive into the details of the open window for the Southwest Airlines Profit Sharing transfer (now called the Retirement Savings Plan at Empower). 

Since the window to move your profit sharing funds over to the SWAPA 401(k) plan is officially open, this conversation aims to raise awareness for Southwest pilots contemplating transferring their profit sharing money.

Key Topics Covered

• The Window Timeline: The 2026 annual transfer window for transferring your Empower Retirement Savings Plan (profit sharing) to your Charles Schwab SWAPA 401(k) Savings Plan is August 3-24.
• One Time Opportunity: As part of the latest contract, the profit sharing funds are open to transfer only one time, and the window opens once per year.
• Eligibility Rules: Who may make the transfer, if desired. 
• The IRS Bucket: How maximizing your annual retirement savings impacts whether or not you receive profit sharing money each year into your profit sharing account.
• Transfer Considerations: Evaluating whether transferring your profit sharing funds aligns with your personal preferences and goals.
• Transaction Gotchas: What happens to self-directed accounts (PCRA) and SWA stock during the transfer process.

Actionable Takeaways

• Consider whether or not you want to transfer your profit sharing money, and when may be the right time for you.
• Once you use your one-time transfer opportunity, the current contract requires you to wait until separation from service or age 59 ½ to make additional transfers.
• If a transfer is desired, 
  • Make your final election via https://workplace.schwab.com/ by 2259 Central Time on August 24. 2026.
  • Review your current automatic contribution elections at your Schwab SWAPA 401(k) website, as incoming cash will automatically be invested according to those settings.
  • Prepare for a brief period out of the market while your Empower funds are liquidated to facilitate the cash transfer.
  • Understand what will happen with SWA stock and Schwab self-directed brokerage accounts in your profit sharing account.
• Reach out to the Leading Edge Financial Planning team at charlie@leadingedgeplanning.com or andrew@leadingedgeplanning.com for personalized insight into your financial situation.
  

Planning your long-term retirement strategy may feel complex, but taking time to understand the alignment of your company’s benefits can lead to better peace of mind. 

Timestamps

00:00  The window is open!  

01:34 How to contact us

02:00 The annual transfer window

03:00 Who is eligible?

03:20 You have ‘one shot’ to do this transfer

04:29 How to make your election (by 2259 Central on 24 Aug 2026) 

04:54 How the money transfers

05:55 What to do with a self-directed brokerage account 

06:39 Who is eligible

07:35 How to estimate if you will receive future profit sharing in your Retirement Savings Plan at Empower

11:43 Gotchas

12:39 Wrap-up and disclaimers

For personalized guidance, visit Leading Edge Financial Planning or reach out to our team anytime.

Connect with Charlie Mattingly

charlie@leadingedgeplanning.com 
865-240-2292

Connect with Andrew Christopher

 andrew@leadingedgeplanning.com 
 901-664-3753