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Wednesday, February 1, 2017
IMPORTANT INFO REGARDING PROFIT SHARING AWARDS & 401(k) – LAA/LUS
With a profit sharing payout coming on or around March 10th, it’s important to understand the Special Election process. It’s also a good time to explain what you are eligible for in terms of company matches and contributions to your 401(k).
Please remember that your regular contributions to your 401(k) are determined by what you select for your Contribution/Catch Up percentages. This will NOT be what contribution is made from your profit sharing award. To make a contribution (and get the company match, if eligible) you must make a selection in the SPECIAL ELECTION section under Contributions on the Fidelity website.
The company will be putting money in your 401(k) based on your profit sharing award. All Flight Attendants will be eligible for one of the following:
- LEGACY US AND POST-2012 LEGACY AA FLIGHT ATTENDANTS receive a 3% company contribution and 2.5% company match. The 3% company contribution will be made regardless of how much is designated as a Special Election. In order to make sure they are matched by the company for the full 2.5%, Flight Attendants should make a Special Election contribution of at least 2.5%.
- PRE-2012 LEGACY AA FLIGHT ATTENDANTS receive an Age Based Contribution and will have their company contribution placed in their 401(k) account based on the age group they are in (39 and under: 5.5%, 40-49: 6.75%, 50 and over: 9.9%), regardless of how much they defer via a Special Election.
Special Elections can be designated as either Pre-Tax or Roth, but all company contributions and matches are always treated as Pre-Tax contributions.
Please remember that Special Elections need to be made by 4:00pm ET on February 24th in order to ensure it can be processed in time for the profit sharing payout. Special Elections can be made by logging into http://netbenefits.com/aa or by calling the American Airlines 401(k) Center at Fidelity at (800) 354-3412. Administrative questions and concerns can be directed to the 401(k) group at firstname.lastname@example.org.
Now would be a good time to make sure the percentages in your Special Election contributions are up to date and an accurate reflection of what you want deferred from your profit sharing award in March.
APFA Retirement Specialist