As provided for in the Letter of Agreement reached early last year between AFA and the company, Flight Attendants will be given the ability to determine how they will receive their Profit Sharing payment. The company has completed the necessary programming to provide Flight Attendants the ability to designate how they wish to receive their annual Profit Sharing payment.
Flight Attendants have the option to receive their Profit Sharing as a tax-deferred payment to the Direct Contribution Plan (401(k)), and/or on an after tax basis into a Roth 401(k) plan account, and/or cash or in any combination thereof.
Now is the time to act if you intend to direct any money into your Retirement Accounts. Elections to direct money into your 401(k) must be on file no later than 2359 Central Standard Time on January 22, 2013.
Flight Attendants who do not make a special election for their Profit Sharing will receive the entirety of their Profit Sharing payment as taxable cash compensation. Profit sharing cash compensation is subject to applicable taxation and withholding which for U.S. taxpayers is at the federal supplemental (higher) rate. Additional information can be found on our website.