Flight Attendants generally receive company contributions plus are eligible to receive company matching contributions. In addition to a 3% company contribution, American provides 100% company matching contributions on your Pre-Tax and/or Roth 401(k) contributions up to 2.5% of your eligible compensation. So every dollar you contribute* up to 2.5% gets matched by American, dollar for dollar.
Participation in the 3% company contribution is automatic after you complete one year of service. However, if you contribute less than 2.5% on a Pre-Tax and/or Roth 401(k) basis you could be passing up on free money.
Flight Attendants that were on the American Airlines System Seniority List for Flight Attendant Employees as of April 12, 2012, receive an age-based company contribution. This company contribution remains in effect until December 31, 2018.
Under age 40: 5.5% of eligible compensation
Age 40 to 49: 6.75% of eligible compensation
Age 50 and older: 9.9% of eligible compensation
Flight Attendants eligible for the age-based company contribution receive this contribution in place of the 3% company contribution plus 2.5% company matching contributions.
As of January 1, 2019, all Flight Attendants with at least one year of service will receive the 3% company contribution plus 2.5% company matching contributions to their 401(k) accounts.
If you do not have an investment election on file, your contributions along with company contributions and company matching contributions will be made to the Target Date Fund closest to the year you turn age 65.
You are always 100% vested in your contributions and earnings on those contributions. You become 100% vested in your company contributions and company matching contributions (plus their associated earnings) generally upon completing two years of service or reaching age 65, if earlier. Once vested, the employer contributions are yours to keep. However, if you leave American before you have two years of service, you will forfeit all employer contributions and their associated earnings.
*After-Tax and Catch-up contributions do not qualify for company matching contributions.