Southwest Airlines

Your Southwest Retirement Program has evolved into a very beneficial package. It includes the Retirement Savings Plan (401(k)), the Profit Sharing Plan, the 401(a)(17) Contribution Plan, the Excess Benefit Plan (415) and the Deferred Compensation Plan (Top Hat ). In addition, your SWAPA Stock Option Plan also may represent a significant portion of your retirement assets. The various plans give you several options for receiving proceeds. We will briefly summarize them here and suggest issues you should consider as you evaluate your options.

Retirement Savings Plan 401(K)

The SWA Retirement Savings Plan 401(k) offers you the opportunity to contribute up to 50% of your eligible pre-tax salary into your account, up to IRS limits. Income taxes are deferred on your contributions and your account’s growth.

Annual contributions are limited by the Internal Revenue Service Code, which is $17,500 for 2013. In addition, if you are age 50 or older, you also can make additional “catch-up” contributions of $5,500 in 2013. More