401(k) Plan Update

 

Fellow Spirit ALPA Pilots,

We were previously informed by the Company that the 401(k) plan was scheduled to terminate around the end of June. As of yesterday, July 1, 2026, we have confirmed with Schwab and the Company that true-up funding started yesterday and will continue into next week. As true-up funds are deposited, 415(c) excess funding and cash over cap (401(a)(17)) checks are distributed, and necessary pre-tax to Roth contributions occur, account terminations will become visible. If a termination date appears in your account, you may access your 401(k) funds without delay. Specific details about the different actions and refunds occurring are outlined below;

 

• 1,301 Pilot 401(k) accounts have been terminated as confirmed by Schwab.
• 584 Pilots are due to receive excess funding refunds under IRS 415(c) or refunds as a result of non-discrimination testing failures based on the partial-year plan limits provided in a previous Custodian Update. Refunds from the plan total approximately $2 million.
• 600 Pilots will receive their share of the $450,000 owed for 401(a)(17) “cash over cap” payments under CBA 28.E next week via Spirit Payroll.
• Schwab and the Company have also identified there is a small group of Pilots who need 401(k) pre-tax contributions converted to deemed Roth contributions per the new 2026 Secure 2.0 Roth contribution requirements.

 

As more information becomes available, it will be shared with our Pilots.  

 

When Pilot’s 401(k) accounts are terminated, required ERISA notices, as well as Schwab assistance and planning communications, will be distributed to plan participants and may also be visible online in accounts. Pilots should carefully consider their account options before removing or rolling over their accounts by reaching out to Schwab directly or by consulting a trusted Financial Advisor. 

 

Lastly, if you missed them, the Schwab 401(k) webinars hosted on June 18, 2026, have been posted to the Spirit Restructuring website and spa.alpa.org. Click HERE to register and watch the Charles Schwab webinar.

 

In observance of Independence Day, ALPA offices will be closed Friday, July 3. We hope everyone enjoys a safe holiday weekend.