Your situation and goals are based on how much you should invest toward retirement. However, it is essential to start saving early to maximize The Boeing Company’s contribution match.
In 2022, healthcare expenses are projected to rise dramatically, and the cost of living is expected to increase. It would help if you considered these rising costs when constructing your holistic plan for retirement from The Boeing Company.
Benefits
Upon joining the Company, you will receive an upfront confirmation statement reflecting your benefits coverage. You can also access this information anytime on the Boeing Benefits Center website.
You can invest your VIP account contributions into one or more investment funds. Your time horizon, risk tolerance, and financial objectives will influence your decision.
You can roll over to VIP any pretax contributions and investment earnings from a plan maintained outside the Company, including an IRA. However, the VIP trustee does not accept rollovers from IRAs with after-tax or Roth contributions.
Taxes
Several tax considerations with boeing retirement plans must be considered when saving money and receiving payments from your plan. At The Retirement Group, we are here to help you understand these tax implications and ensure you’re making the most of your plan benefits.
Generally, when you retire or reach age 59 1/2, you take a lump sum distribution of all assets in your Boeing Company-sponsored plans. This includes your contributions and the Company’s matching dollar-for-dollar contribution to your 401(k) account.
Unlike withdrawals, plan loans are not subject to taxes (unless you fail to repay them). However, investment earnings stop on borrowed funds until they’re compensated, and you pay interest on the loan amount. A TRG advisor can review your options for borrowing from the VIP.
Investing
You can invest your VIP contributions in a variety of investment options. These include futures contracts and other commodity interests. The Boeing Company Employee Benefits Investment Committee oversees the VIP and has agreed with investment managers to allow trade in these assets by established guidelines. See the Fund Fact Sheets on the My Retirement Income website or call the Boeing Retirement Service Center through Boeing TotalAccess for additional information.
You may withdraw funds from your VIP account at any time after you are vested, subject to certain limits (e.g., those imposed by the Internal Revenue Code). A 10 percent tax generally applies to taxable withdrawals made before age 59 1/2. For additional information, see the “Key Plan Limits” section on the My Retirement Income website or call the retirement services representative through Boeing TotalAccess.
Rollovers
You can roll over (transfer) any pretax contributions and investment earnings you have made to the VIP from another employer’s qualified plan, such as a traditional individual retirement account or Simplified Employee Pension (SEP). The VIP trustee generally will not accept a direct rollover of posttax or nondeductible contributions.
If you choose to withdraw your money, you will pay ordinary income taxes on the taxable portion of any withdrawal made before age 59 1/2. You may also be subject to a 10 percent early withdrawal penalty. See your plan summary for details and possible restrictions on withdrawals.
Be sure to designate a beneficiary for your VIP account. You can do this online or by calling the Boeing Retirement Service Center through Boeing TotalAccess. Also, enroll in Medicare as soon as you leave The Boeing Company if you are eligible.
Withdrawals
Depending on your circumstances, withdrawals can significantly impact your financial future. For this reason, it’s essential to consider your withdrawal options before deciding.
Boeing provides employees various retirement savings and investment options to align with their financial goals. For example, employees can invest in the Boeing Voluntary Investment Plan (VIP) on a pretax or Roth after-tax basis. They may also have the option to include company stock in their VIP investment mix.
Your VIP account is vested based on years of service, which helps to encourage long-term commitment and ensure that your employer contributions will be retained should you leave Boeing before reaching full vesting. You can track your vesting status through the My Retirement Income website or by calling the Boeing Retirement Services Center through Boeing TotalAccess.