Fidelity Service Center Clarification for Flight Attendant 401(k) Plan
August 7, 2019
In a recent communication from United Airlines, a Summary of Material Modification to the Flight Attendant 401(k) plan was sent to each plan participant. There were essentially three (3) material modifications to the 401(k) plan that the company sought to focus our attention on.
First, each year, in order to defer funds from received from the “Profit Sharing Plan” into the Flight Attendant 401(k) plan, you must make a separate deferral election during the designated period prior to the profit sharing distribution date. The company is highlighting that this is an annual election and this election is not subject to the annual increase program. You must make a separate election to defer money from the Profit Sharing Plan.
Secondly, as of January 1, 2019, if you obtain a hardship withdrawal under the terms of the plan, your contributions to the Plan no longer have to stop for six months.
Thirdly, you must reach age 62 in order to withdraw funds in the Money Purchase Source and/or Target Benefit Source in your accounts, if you have elected to allocate funds to these funds.
Refer to www.401k.com for additional information or contact Fidelity Investments.