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Profit Sharing Election Window Open through January 25, 2015

Date: January 7, 2015

United will announce their 2014 year-end financial performance later this month.  Consistent with the terms of Section 5.J.2. of our Contract, if the company earns more than $10 million in pre-tax profits for the year, a profit sharing payment will be paid to eligible Flight Attendants.

We will have the ability to designate a percentage of our profit sharing award to our Contractual 401(k), or U.K. Stakeholder plan retirement savings accounts.

For this year, elections can be made now through January 25, 2015 at 11:59 pm Central Time during which time you can decide to defer all, or a percentage of your, Contractual profit sharing payment to your:

  • 401(k) retirement savings account or,
  • Roth 401(k) Plan account, if applicable.
  • UK Stakeholder Plan Account

We anticipate that United will once again make the payment mid-February.

Keep in mind that making an election to contribute a percentage of your Profit Sharing payment into your 401(k), or U.K. Stakeholder retirement savings plan, is a one-time election that will have no impact on your normal payroll contribution election.

All monies not deferred to the retirement savings plan will be paid consistent with the manner in which you receive your monthly paycheck – either direct deposit or as a paper check.  Keep in mind, IRS regulations dictate that these types of special payments require Federal Income tax withholding at a minimum rate of 25% plus Social Security (FICA), Medicare and any applicable state and local income tax withholdings.

As a further clarification, should you elect to defer 100% of your profit sharing payment on a pre-tax basis, understand that IRS rules require this (federal) tax deferred payment is still subject to Social Security, Medicare & applicable state and local income taxes.  Further, the aggregate sum of those amounts (Social Security + Medicare + state & local taxes) is further subject to Federal Income tax withholding.

If you wish to defer any portion of the Profit Sharing payment to an eligible retirement saving plan account, you must make an election.  Absent an election, the Profit Sharing Payment will be distributed as a cash payment subject to all applicable federal, state, local taxes and FICA withholding.

To designate a percentage of our profit sharing, go to United’s Flying Together website then Employee Services > My Info > Payroll > Profit Sharing Election.

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