Think Things Through

You have three ways to contribute, with different rules when it comes to withdrawals and loans. The tax advantages of pre-tax and Roth contributions are designed to encourage you to save for retirement — so withdrawing money before you reach retirement age carries certain restrictions. After-tax contributions can be withdrawn at any time, without restrictions.

Here’s a Summary of the Differences

Type of AccessPre-Tax ContributionsRoth ContributionsAfter-Tax Contributions
  • Anytime without restrictions
  • After age 59½
  • To meet a qualifying hardship

Access When Working

Taking Out a Loan

You may be able to borrow a portion of your vested account and pay your account back with interest through after-tax payroll deductions. Just keep in mind that you reduce your earning power overall when you borrow against your account. That’s why it's always best to check with a financial advisor to explore other options.

Making an Early Withdrawal

Early withdrawals of pre-tax or Roth contributions are subject to penalties. You may be assessed an IRS penalty if you receive a distribution before age 59½ and do not roll over your account into an IRA or another employer’s qualified plan. You’ll also owe taxes on withdrawals of pre-tax contributions and on all earnings (including earnings in your Roth account).

Note that early withdrawals while you are still employed are only permitted if you have a qualifying hardship per IRS rules.

For details, see the Summary Plan Description on the NetBenefits website under Plan Information and Documents.

Find out more at the NetBenefits website or by calling the American Airlines 401(k) Service Center at Fidelity at (800) 354-3412.

Other Access

Your account is available for distribution when you leave the company, retire or become disabled. You can request a distribution after 30 days.

If you leave the company or retire at age 55 or later, you may be able to receive a distribution with no penalty. Keep in mind that penalties don’t apply once you reach age 59½ — or if you’re disabled.

If you pass away and have an account balance, your named beneficiary will receive notification of distribution options.