CAP/401(k) News: Roth, Partial Distributions & Auto-Enroll 

04/26/2006

1. ABX Air is pleased to announce that Roth deductions have been added to the CAP/401(k) plan. Roth 401(k) deductions allow participants to contribute into the plan on an after-tax basis. The advantage for participants include the earnings and contributions are not subject to federal income taxes when withdrawn at retirement age, provided all the requirements are met under the Roth regulations. Certain other tax restrictions may apply. Fidelity will be mailing information with additional details about the new Roth deductions to participants' homes. Please review the information carefully before enrolling in Roth 401(k) deductions. 

 

2. ABX also is pleased to announce that at retirement, participants are now permitted to make partial withdrawals from the CAP/401(k) plan. This allows retirees to access a portion of their accounts rather than taking the entire amount as a lump sum. Previously only lump sum distributions were allowed. This new feature will allow retirees to better manage their accounts while allowing continued access to the funds available in the plan.    

3. Finally, beginning May 5, 2006, ABX will no longer automatically enroll new hires into the CAP/401(k) plan. This applies to employees hired on and after May 5, 2006. Newly hired employees can still enroll in the plan by calling Fidelity at (800) 835-5095 or on-line at www.401k.com. Employees hired before May 5, 2006, are automatically enrolled at 3 percent. These employees can make changes by contacting Fidelity directly.