In the lexicon of aerospace employment, Job Code 6L9BP3 represents more than an alphanumeric string. It symbolizes an opportunity to be part of Boeing’s evolving narrative and a chance to contribute meaningfully to its groundbreaking innovations.
You may elect to withdraw a lump sum distribution from your VIP account or the other profit-sharing plans maintained by the Company. You can start on the My Retirement Income website or call the Boeing Retirement Service Center through Boeing TotalAccess.
The 401(k)
One of the boeing retirement plans is the 401(k) plan with a sizeable company contribution.. A 401(k) is an incredible benefit that allows you to save a portion of your salary on a tax-deferred basis. Boeing matches your contributions dollar for dollar. In fact, according to a 2020 study from Financial Engines, employees who don’t maximize their Company’s match are leaving an average of $1,336 in potential extra retirement funds on the table each year.
The 401(k) plan offers several investment options, and you can change your investments anytime. It’s essential to remember that any withdrawals from your 401(k) will be liable to regular income taxes, and if you are under 59 1/2, you will be charged a 10% penalty tax.
Unlike the SPEEA engineers, Boeing’s management and nonunion staff members can choose to take their pension in either a lump sum or fixed-income monthly checks for life. This option allows them to make more money in retirement, and most choose the lump sum.
The 403(b)
The 403(b) plan, a tax-advantaged retirement savings option, is comparable to 401(k) plans in terms of features and is available to workers of public schools and specific tax-exempt organizations. It also can offer a broader range of investment options than 401(k)s, including annuities.
Like a conductor carefully blends different instruments to create a harmonious symphony, effective retirement planning requires careful consideration and analysis of many financial aspects. Learn practical strategies to optimize investments, manage mortgage payments, and safeguard financial stability.
Available data suggest that 403(b) plan fees vary widely and are often higher than those charged by comparable 401(k)s. Some plans impose administrative and service charges, while others may charge additional fees for investment options (e.g., annuities).
In addition, non-ERISA 403(b)s do not have the same legal protections provided under ERISA; therefore, the assets in those accounts may be subject to creditor claims.
The 457(b)
Like a 401(k), the 457(b) lets you save money pre-tax. The amount you can contribute depends on your plan, but governmental plans typically cap contributions at $22,500 and allow workers age 50 or over to add $7,500 in so-called catch-up contributions.
If your employer participates, they may offer a match of up to 6% of your salary. When you withdraw, these matching contributions are considered part of your taxable income, but their investment earnings are also tax-deferred.
Another unique feature of the 457(b) is that it allows for cash withdrawals without a 10% early withdrawal penalty while you’re still working or at retirement. This contrasts with the IRS rules governing most other retirement savings accounts. Brighton Jones can help you align all components of your complex compensation package into a cohesive financial picture that will work for you. We’re here to make sense of your options, avoid costly mistakes, and prepare for the future you deserve.