Friday, December 7, 2018
401(k) Match and Company Contribution
Since April 12, 2012, Flight Attendants on the 2012 Legacy American Airlines System Seniority List have been receiving a contractually negotiated special 401(k) Company contribution. This age-based contribution expires on December 31, 2018. (JCBA Section 26.G.3.e.)
Starting with the January 15th paycheck, those members who have been receiving the age-based contribution will revert back to the JCBA language in place for all Flight Attendants. It is important to note that as of January 1, 2019, you will still be eligible to receive both a 3% Company contribution and 2.5% Company match.
You will receive the 3% contribution no matter what you are contributing to your 401(k), however you must be contributing at least 2.5% in order to receive the Company’s 2.5% maximum match. If you contribute 1%, you will receive a 1% Company match. Those members who were receiving the age-based contributions should verify that they are contributing more than 2.5%, so that no one is going to be missing out.
- Sue Smith will earn $50,000 in 401(k) eligible income, and has elected to contribute 10% ($5,000) to her 401(k) plan
- American Airlines automatically contributes $1,500 (3% of her salary) to her 401(k) plan
- In addition, American Airlines offers up to a 2.5% match ($1,250)
- The total yearly contribution made to Sue’s plan would be ($5,000 + $1,500 + $1,250) = $7,750(Note: American Airlines’s contributions do NOT count toward your annual contribution maximum. The basic employee contribution limit for 2019 is $19,000, up from $18,500 in 2018.)
If you have questions or need assistance with your 401(k) elections please contact the American Airlines 401(k) Service Center at Fidelity at 800-354-3412. Representatives are available Monday through Friday from 8:30 AM to midnight ET (excluding all New York Stock Exchange holidays except Good Friday).
APFA Retirement Specialist