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Dear fellow Council 82
Flight
Attendants,
WORKER, RETIREE AND EMPLOYER RECOVERY ACT OF 2008
I have been receiving calls from flight attendants inquiring about
the IRS 8935 Form which have been mailed to your homes. Please refer
below for a complete explanation of why you received this form and
what options are available to each of you.
US Airways is currently mailing out to all employees information on
the Worker, Retiree and Employer Recovery Act of 2008. Flight
attendants were participating in a defined benefit plan during
bankruptcy. You are now entitled to rollover the amount you received
from US Airways as a result of the bankruptcy proceeding into a Roth
IRA. Please note that you are NOT required to roll the amount into a
Roth IRA. You are simply given the option to do so. So you may do
nothing at this time if you so choose.
Please note that you will NOT receive a check or a future cash
payout. The amount reported on the IRS Form 8935 that you recently
received was included in your earnings/compensation and ALREADY PAID
TO YOU in the form of certain lump sum cash payments, stock option
exercises, or in the form of restricted stock between the years of
2003-2006. Since you have already received these earnings or stock
options, you are eligible to roll the amount on the IRS Form 8935
into a Roth IRA from your current savings or investments. Any
personal savings or investments that you have are acceptable funds
for this rollover.
You may choose to contact your tax consultant or any financial
institution such as Fidelity, Wells Fargo, Bank of America,
Wachovia, etc. to open up a Roth IRA first and roll the amount from
IRS Form 8935 out of your personal savings or investments and into a
Roth IRA once it is established. A representative from one of those
institutions will then instruct you on how to get this completed.
You may also contact US Airways at :
retirement.benefits@usairways.com and enter Worker, Retiree, and
Employer Recovery Act 2008 in the subject line of the e-mail.
Q&A's
WHY AM I receiving this Form 8935 now?
As you know, the Company was involved in bankruptcy proceedings in
the United States Bankruptcy Court during 2002 and 2004. Under the
WRERA of 2008, as a present or former airline employee and a present
or former participant in one of the US Airways defined benefit
pension plans, you are entitled to rollover to a Roth Individual
Retirement Account Roth IRA an amount equal to the amount of the
payment that you received from US Airways, Inc. as a result of
bankruptcy proceedings and the termination of the respective defined
benefit plan in which you participated.
HOW WERE THESE amounts reported to me in the past?
The amounts reported to you on this Form 8935 are the same amounts
that were reported to you as taxable income on your IRS Form W-2 for
the year of receipt.
DO I HAVE TO amend my prior tax returns to exclude these
payments?
You do not have to amend any prior tax returns, if you included
these payments as reported to you as taxable income on your federal
tax return.
DO I HAVE TO roll over the amounts reported on Form 8935 to a
Roth IRA?
No, you do not have to roll over these amounts to a Roth IRA. In the
event you elect to rollover all or any portion of the amounts
reported on Form 8935, the portion that is rolled-over will be
considered a qualified rollover to the Roth IRA. As such, these
amounts will grow tax-free and will not be subject to income tax
upon distribution from the Roth IRA, provided you comply with the
rules applicable to Roth IRAs. This information is reported to the
IRS.
DO I HAVE TO attach this Form 8935 to my 2009 tax returns?
In the event you wish to take advantage of the rollover opportunity
described in this Notice, you are encouraged to review IRC section
408A and to consult with your financial and/or tax advisor regarding
the implications of investment in a Roth IRA and your personal tax
returns.
DOES THIS IMPACT my 2008 or 2009 tax return?
BY WHAT DATE do I have to make this election?
If you decide to rollover these amounts to a Roth IRA, we assume
that you will need to report this on your 2009 federal income tax
return. However, please contact your financial or tax advisor
regarding the filing and reporting requirements of your personal
return. If you wish to take advantage of this opportunity to
rollover all or any portion of these amounts into a Roth IRA, you
will have until June 22, 2009, to comply with the conditions
provided in this Notice. Thus, it is very important that you read
this Notice carefully and promptly contact your financial or tax
advisor with any questions.
WHO DO I CONTACT if I have questions regarding the Notice of
Airline Payment Rollover Rights under Worker, Retiree and Employer
Recovery Act 2008?
Please email your inquiries to
retirement.benefits@usairways.com and enter Worker, Retiree and
Employer Recovery Act 2008? in the subject line of the email.
In Solidarity,
Rob Wessinger
LEC President
Council 82 / LGA
315-736-3483 OFFICE
315-404-5257 CELL
315-736-7577 FAX
rwessinger@afausairways.org
Rob
Wessinger
LEC President
Council 82-LGA
Association of Flight Attendants - AFL-CIO
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