United Airlines 2013 Annual Report Download - page 226

Cash Match The Cash Match portion of the Program defines how Company matching contributions determined in accordance with the formula
under the 401(k) Plan are paid once IRS limits on 401(k) contributions are met. Matching contributions to the 401(k) Plan are based
upon eligible year-to-date compensation that you defer to your 401(k) account, up to a maximum of 4% of eligible earnings as
determined under the 401(k) Plan.
The Company will cease making matching contributions to the 401(k) Plan and instead pay them to you in cash if the following
occurs:
• Your earnings as a Management co-worker for the year exceed the IRS total annual compensation limit (e.g., $260,000 in
2014) under Section 401(a)(17) of the Internal Revenue Code and you have made pre-tax and/or Roth contributions
totaling the elective deferral limit (e.g., $17,500 in 2014) under Section 402(g) of the Internal Revenue Code, or
• Contributions for the year to your 401(k) account (the total of your contributions and the Company’s) reach the IRS total
annual contribution limit (e.g., $52,000 in 2014) under Section 415(c) of the Internal Revenue Code.
Your “earnings” are determined in accordance with the 401(k) Plan and only include amounts earned while a Management
Employee. Please note that if you are eligible to make Catch-up Contributions to the 401(k) Plan, you are not required to make such
contributions in order to qualify for Cash Match payments under the Program.
EXAMPLE: Using the 2014 limits for example purposes only, assume that your 2014 earnings were $300,000 and that you have
made pre-tax and/or Roth contributions totaling the elective deferral limit of $17,500 to the 401(k) Plan. $300,000 minus $260,000
is $40,000. $40,000 is multiplied by your matching contribution percentage under the 401(k) Plan, which is 4%. Thus, you would
receive a Cash Match payment of $1,600.
Additional Rules 1. The timing of Cash Direct and Cash Match payments is determined by the Company, provided that they shall be made no
later than March 15th of the year following the calendar year earned. You do not have the option to accelerate or defer payment,
and these amounts are taxable in the year paid.
2. If you cease employment during the calendar year (other than termination for cause), you are eligible for Cash Direct and/or
Cash Match payments based upon your actual earnings for the calendar year, and your payment will be made at the same
time that other Management Employees receive their payments. If you are terminated for cause, you are not eligible for Cash
Direct or Cash Match payments. You are considered to be terminated for cause for purposes of this Program if you are
determined to be ineligible for severance benefits due to termination for cause under the applicable severance plan in which you
participate (or, if applicable, your individual employment agreement).
3. No interest accrues between the time a Cash Direct or Cash Match payment is earned and the time it is paid by the Company.
4. Cash Direct and Cash Match payments count as earnings under the 401(k) Plan for purposes of calculating your Section 415
limitation (the maximum amount that can be contributed per plan year) but not for any other purposes.
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