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When am I eligible to participate?

The date of eligibility is determined by your Company Participation Agreement. You may begin making contributions to the Plan on the start date indicated in your Company Participation Agreement. You will begin receiving contributions to the Plan according to the provisions indicated in your Company Participation Agreement.

Do I actually own the money in my account?

Former TWA employee account balances are 100% vested at all times. Vesting schedules are subject to your Company Participation Agreement.

Am I Allowed to withdrawal from my DAP account?

Withdrawal from the plan is allowed under certain circumstances, and can be requested through the Directed Account Plan Service Center. Such a withdrawal must be for an immediate and heavy financial need that cannot be met by any other resources available to you. (including any contributions you rolled over from another plan or any loans that you could take from your accounts) Hardship withdrawals are subject to IRS rules. Refer to your Summary Plan Description for more details about withdrawal.

If I should die before my wife, who is the beneficiary of my DAP and what happens to the money in the account ?

You select the beneficiary. If you have designated your wife as your beneficiary under the DAP, she would have a number of options available upon your death with respect to the entire value of your DAP account. A taxable event would not occur until she actually receives a distribution. The options she would have include:

  • Defer distribution and remain invested in the DAP. She would have the ability to transfer funds from one investment option to another, as you do now.
  • Receive a lump sum distribution or initiate a rollover to an IRA.
  • Receive a partial lump sum distribution or initiate a rollover into an IRA.
  • Receive monthly, quarterly, annual installments.
  • Receive an annuity.

When may I take a distribution?

You may elect to receive a partial or full distribution of your plan balances when you retire, become disabled, or terminate employment. Your beneficiary will receive the full value of your plan balances if you die while participating in the plan. You may choose among several payment options.


What are mutual funds and variable funds?

Mutual funds and variable funds are pools of money gathered from individuals and invested in stocks, bonds or money market instruments.

When you invest in a fund, you become a part owner. You share equally when stocks or bonds held by the fund rise or fall in value. You also share the fund’s dividend or capital gains earnings.

Each fund subscribes to a different investment approach. Some funds seek income by investing stocks or bonds that have a history of paying steady dividends. Other funds may seek growth by investing in stocks with growth potential. Some funds have both growth and income as goals. Most retirement plans also offer cash accounts, where the value is fixed but earnings are lower. A financial advisor can help you determine the best combination of funds to meet your financial goal.

What’s a plan sponsor?

In most cases, the plan sponsor is your employer. The plan sponsor decides which investment options you’ll have in your retirement plan and then sets the rules. (rules such as whether you can borrow against your retirement assets or if you can rollover assets from a previous employer into your current retirement plan.) The sponsor is also required to make sure that the plan follows all laws regulation retirement plans.

What’s a recordkeeper?

The recordkeeper maintains the data for your individual account and provides you with statements. Because the maintenance of investment records is complicated and time consuming, most retirement plans rely on outside firms that specialize in this work.

What’s an exchange or transfer?

An exchange is the act of moving money from one fund to another in your plan. For example, taking funds from your cash account and increasing holdings in a stock funds is called an exchange.

What’s my allocation?

Your allocation is how you spread your monthly contributions and your employer’s regular monthly contributions among the stock, bond and cash funds in your plan. You may change your allocation at least once a year by shifting the proportions going into stock, bond or cash funds. Some plans allow you to change your allocation more frequently. Changing your allocation is not the same as making an exchange. Money you’ve already invested won’t be moved unless you make an exchange.

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