Profit Sharing 401(k) Election due by 2359 Central time on February 11, 2018.
February 3, 2018
As we have previously reported, information on Profit Sharing calculations has been made available to all Flight Attendants. Using the same formula as last year, Profit Sharing amounts for each employee can be found on the company’s website. The Payout Percentage for Flight Attendants is 4.7969%. Keep in mind, employees with less than one year of service on December 31, 2017, are not eligible to participate in the Profit Sharing Plan.
401(k) Special Elections for Profit Sharing can be made until 2359 Central time on February 11, 2018. You may make elections to defer Profit Sharing into your company sponsored retirement plan account on a pre-tax or post tax basis or into a Roth 401(k).
In anticipation of questions we have received in previous years, we remind those who are deferring into your 401(k) on a pre-tax basis that you may see a variety of taxes, including Federal Income taxes being withheld on some portion of the Profit Sharing proceeds deferred.
This money even when directed into the pre-tax deferred 401(k) account, is subject to FICA (Social Security and Medicare) withholding, CA state disability withholding as well as some other State and Local taxes. The money withheld from the Profit Sharing payment to pay these FICA, state disability and other taxes is considered wages for the purposes of the Federal tax code. As a result, the money withheld from the Profit Sharing to pay these various tax and disability amounts is reported as wages and is further subject to Federal tax withholding. It is for this reason that you will see Federal Taxes withheld from the Profit Sharing proceeds that have been directed into the 401(k) accounts.
If you have additional questions, please contact your Local Council Office.