Boeing Employees – Retirement Planning
With all the different union representation and contracts, understanding Boeing’s employee benefits can be confusing. Whether your trying to plan for your retirement or just trying to decide on the appropriate VIP allocation, our Boeing expert can help. Matt has guided countless Boeing employees through retirement and continues to work with many at all stages of retirement today. We have done our best to outline many of the most common questions here on this page. We also offer free one hour consultations if you would like personalized one on one advice with our expert. You can book your free consultation here.
Q&A: While You Are Working
While you are working make sure you are contributing at least 8% to your 401k plan, also called the Boeing VIP (Voluntary Investment plan). Boeing matches $0.75 for every dollar you contribute, up to 8% of your Salary. It’s free money! Don’t pass it up.
This is a hard question because the answer is different for everyone. You need to consider all these variables:
- Current age
- Current Income
- Income in retirement
- Current savings ability (If you can save more than $18,500 per year you can do both via a back-door ROTH)
The general rule of thumb is if you’re under 35 the ROTH option probably makes.
Our team can help you make this decision. You can book your free consultation here.
The Boeing VIP (401k) plan allows employees to make after tax contributions. The after-tax contributions can be rolled into a ROTH IRA. The back-door ROTH is named that because it’s a way to get money into a ROTH IRA without giving up your pre-tax contributions. You can fund the full $18,500 pre-tax limit and then put additional money into the after-tax account and later roll that into a ROTH IRA. Be careful to not let your total contributions to go over $56,000. Total contributions include your contributions, the Boeing match, and the VIP+ contributions.
If you would like help calculating what percentage you need to contribute to maximize your tax benefit you can book your free consultation here.
When Boeing stopped offering pension plans they started offering a program called VIP+. Boeing now contributes an additional percentage of your pay into the VIP plan regardless of your contributions. The percentages contributed depend on your union representation. For the first few years of the program the percentage is between 10%-6%. By 2022 everyone will be receiving between 3%-5%, depending on your age and representation. If you need help figure out how much you get, feel free to call our Boeing specialist 206-388-2210.
This is hard question because the answer is different for everyone. When deciding how to allocate your VIP you should take into consideration how soon you are going to retire, how soon you plan on withdrawing funds, and your tolerance for risk. We strongly recommend you work with a professional to review your situation and to help you decide what allocation is best for you. With that said, for those of you that already have a deep understanding of the previously mentioned considerations here are some guidelines allocations. Please understand these are not recommendations and we recommend you have a personalized allocation built to match your needs.
- Lowest risk 100% stable value
- conservative 40/60
- moderate 60/40
- moderate aggressive 80/20
- aggressive 100% Equity
If you would like our Boeing specialists to build a custom allocation for you, please schedule a consultation with us to discuss further.
Getting ready for retirement
Before you retire get your Boeing TotalAccess external password (this is different than internal password). If you don’t have this password it can take weeks to get into the system.
Analyzing your pension
Log into TotalAccess and run a pension estimate. You will need to input your anticipated retirement date and the system will provide you with your withdrawal options.
To better understand all your options read our Boeing Pension whitepaper at https://viridianadvisors.com/turbulence-at-boeing/
Find out if you will get healthcare benefits from Boeing
The easiest way to figure out if Boeing is going to provide you healthcare benefits in retirement is to call TotalAccess. When you call TotalAccess say “Health & Insurance” then ”Retirement” at the voice prompts. You can reach TotalAccess at 866-473-2016.
If you aren’t getting the answers you need call our Boeing specialist at 206-388-2210 and we can help you figure it out.
Review your VIP investment options
As you get closer to retirement it’s important to ensure you are not taking on too much risk you’re your investments. At the same time, its also important that you take enough risk to allow your account to grow enough to support your needs in retirement. We recommend you sit down with a financial planner build a sensible allocation.
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