|Tuesday, May 3, 2016
True-Up Matching Contributions for 401(k) Plans - LUS
This week, a one-time contribution will be made to 401(k) accounts to “catch up” with missing Company matching contributions for 2015 for approximately 2,800 LUS Flight Attendants.
These "true-up" contributions are driven by the differences in the 401(k) administration in the legacy payroll systems. During 2015, the LAA Sharp payroll system had the ability to "true-up" Company matching contributions paycheck to paycheck, whereas the LUS Cyborg payroll system did not. The paycheck to paycheck "true-up" has been implemented in Cyborg for 2016, so this is a one-time adjustment.
This contribution does not impact your 2015 W-2, and does not have any tax implications for 2015 or 2016. It also does not impact 401(k) limits for 2016. Although funded in 2016, any limits for the 2015 plan year have been applied.
The IRS regulations do not require “market value adjustments” (missed interest) in this situation. However, in the spirit of goodwill, the Company has committed to providing to each Flight Attendant's true-up contribution, a one-year market adjustment, using the DOL prescribed rate of 3.2% for the period 5/1/2015 through 4/29/2016.
If you have any questions or concerns with this contribution, please contact the APFA Retirement Department at email@example.com or the American Airlines 401(k) team at firstname.lastname@example.org.
APFA Retirement Specialist
APFA is a strong and independent Union comprised of 25,000 hard-working Flight Attendants of American Airlines. Like any organization, opinions and interests are varied. What makes APFA unique, though, is its highly democratic process which allows members to make their voices heard through the direct election of their Union representatives and voting power on all Constitutional changes. APFA is proud of its membership’s diversity, passion, and advocacy.
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