Employees who participate in 401(k) plans should be aware that the contribution limit for 2023 has been increased to $22,500, up from $20,500.
The “catch-up” contribution limit for employees aged 50 and over who participate in 401(k) plans has also increased to $7,500, up from last year’s $6,500 maximum. This means that 401(k) participants who are 50 years of age and older will be able to contribute $30,000 starting in 2023.
Annual Increase Program Elections via Fidelity Website
As a reminder, our Fidelity Plans provide for the Annual Increase Program. The Annual Increase Program allows you to increase your contribution amount by a certain percentage each year. Manage this election from the Fidelity website at www.401k.com >> Accounts & Benefits >> Manage Contributions where you can update the amount of the increase, the date of the increase or opt in/out of the program at any time. You may contribute as little as 1% to as much as 100%.
The Annual Increase Program should not be confused with the Automatic Enrollment and Escalation feature provided for in Section 29.I.1.d.(3) of our contract which is implemented at company discretion.
Automatic Enrollment & Escalation Feature Under the Contract
Effective as of January 1, 2017, management added an automatic escalation feature to the United Airlines Flight Attendant 401(k) plan. As provided for in Section 29.I.1.d.(3)., the 401(k) plan may include an Automatic Enrollment and Escalation feature at Company discretion. Flight Attendants may elect to opt out of either feature.
Unless you opted out of the program, you have been automatically enrolled in the annual increase program which will increase the amount you contribute to your 401(k) account by 1% each year until you are contributing 10% to the plan. The increase is effective on your step increase date or pay anniversary until you are contributing a total of 10% between pre-tax and/or Roth 401(k) contributions.
If you have reached your 13th year or higher of the seniority step pay increases, the 1% annual increase will occur on the anniversary of your seniority step increase date, until the 10% is reached.
If making pre-tax contributions, the 1% increase will apply to your pre-tax contribution percentage.
If you are making Roth 401(k) contributions, your Roth 401(k) percentage will increase instead.
If you are only making post tax contributions, the automatic increase will not apply. Post tax contributions are not included in this program.
If you are making both pre- and post-tax and/or Roth 401(k) contributions, your pre-tax and/or Roth 401(k) contributions will be increased until you are contributing a total of 10% between these two contribution types.