SOUTHWEST AIRLINES CO. 401K PLAN Contribution & Employer Match

SOUTHWEST AIRLINES CO. 401K PLAN Contribution & Employer Match

SOUTHWEST AIRLINES CO. provides the following retirement savings benefits to its employees:

SOUTHWEST AIRLINES CO. 401K PLAN Average Participant Retirement Account Value

In 2023, the average participant retirement account value for SOUTHWEST AIRLINES CO. 401K PLAN is $143,040.00

SOUTHWEST AIRLINES CO. 401K PLAN Estimated Average Employee Contribution Amount

In 2023, the estimated average employee contribution amount per participant for SOUTHWEST AIRLINES CO. 401K PLAN is $6,362.00. If you contribute an amount exceeding this, you have saved more than your colleagues. Congratulations! Keep up the good work. Otherwise, you might want to consider contributing more to ensure a better retirement future.
407,222.00: this is the amount you will have accumulated 20 years later if you annually contribute the average contribution amount 6,362.00 in SOUTHWEST AIRLINES CO. 401K PLAN, assuming a 10%* annual return.

2023 & 2024 401(k) contribution limits by IRS

 Pretax and roth employee contributionsEmployee and employer contributions combinedCatch-up contributions (in addition to the employee and employer combined limit, age 50 and over)
401(k) contribution limit for 2023$22,500$66,000$7,500
401(k) contribution limit for 2024$23,000$69,000$7,500

$1,440,056: this is the amount you will have saved 20 years later if you contribute the maximum of $22,500 annually for 20 years, assuming a 10%* annual return.

$4,224,165: for those who can maximize employee and employer annual $66,000 contributions for 20 years, assuming a 10%* annual return, you will be 3 times richer!

Use the 401(k) Savings Calculator to determine how much your contributions will accumulate over time.

Employer match in SOUTHWEST AIRLINES CO. 401K PLAN

An employer match is deemed as ‘free’ money wherein your employer contributes additional funds to your allocated retirement savings plan. The matching amount can frequently be several percentage points of your compensation. Don’t avoid this free salary ‘raise’.

SOUTHWEST AIRLINES CO. 401K PLAN Total Employer Contribution and Match Rate

In 2023, SOUTHWEST AIRLINES CO. 401K PLAN allocates $326,460,475.00 to match its employees' contributions, providing an employer match rate of 80.30% of their contributions

SOUTHWEST AIRLINES CO. 401K PLAN Estimated Average Employer Match

In 2023, the estimated average employer match for an employee in SOUTHWEST AIRLINES CO. 401K PLAN is approximately $4,732.00
Investing in this additonal $4,732.00 for 20 years would give you extra $302,891.00, assuming a 10% annual return.

SOUTHWEST AIRLINES CO. 401K PLAN Contribution & Match Policy

Employee Contributions:

  • Employees can contribute between 1% and 50% of their annual compensation through payroll deductions, subject to statutory limits.
  • Contribution percentages can be revised by participants at any time.
  • Catch-up contributions are allowed for participants aged 50 or older.
  • New employees are automatically enrolled at a contribution rate of 3%, with the option to withdraw contributions within 90 days.
  • Contributions default to a Retirement Target Fund based on an assumed retirement age of 65, unless the participant makes a different investment choice.

Employer Match:

  • The company match is 100% of employee contributions, up to 9.3% of compensation, for both collectively bargained and non-collectively bargained employees.
  • The Board of Directors determines the company match for non-collectively bargained employees.

Roth 401(k):

  • The plan allows for contributions on an after-tax basis through a Roth provision.

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