New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
Working Past 65 at Textron: What Continuing Employment Means for Your 2026 Retirement Tax Strategy
Barron’s: Awarded on 9/12/2025 (Mega RIA) for 6/30/24-6/30/25. Paid for logo use. Forbes: Awarded 10/1/25 for 3/31/24-3/31/25. Paid for logo use. USA Today: Awarded 4/15/26 for the five-year period ending January 2026. Paid for logo use.
“In a changing regulatory environment, Textron employees who continue working beyond traditional retirement age may benefit by working with qualified professionals to align their earned income, retirement timing, and long-term planning.” - Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
“Textron employees who extend their careers beyond traditional retirement age may be able to better navigate evolving rules by maintaining a holistic view of income timing, retirement account planning, and long-term financial priorities.” - Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
-
Working beyond traditional retirement age.
-
Key 2026 tax and retirement law changes affecting income and savings.
-
Strategies for retirement planning, including required minimum distributions (RMDs), Roth contributions, and estate planning.
A growing number of professionals, including those at Textron, are choosing to work well beyond the traditional retirement age. 1 Notably, financial need is not always the main driver. Employment often provides discipline, purpose, and social interaction, which leads many individuals to remain professionally active. However, additional tax planning considerations arise when continuing to generate income later in life, especially in light of recent legislative developments related to retirement, income, and estate planning.
The planning environment for individuals in their 60s and 70s has shifted due to recent legislative changes, including provisions under the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, as well as earlier laws like the Tax Cuts and Jobs Act (TCJA) and SECURE 2.0. For Textron professionals, these updates may influence retirement contributions, income planning, charitable strategies, and estate planning decisions.
Understanding these changes may help align ongoing employment income with long-term retirement planning goals.
What You Should Know About the 2026 Tax Environment
Bracket Management Remains Important
Many Textron employees who continue working into their 60s and 70s may find themselves in higher tax brackets than originally expected during earlier retirement planning years. Continued earned income may raise taxable income, especially when combined with Social Security benefits, consulting income, or investment withdrawals.
When planning for continued work at Textron or elsewhere, bracket management—strategically controlling annual income recognition—remains an important consideration.
Roth Catch-Up Contributions for Higher Earners
Employees age 50 and older who earned more than $145,000 from the same employer in the prior year are required, starting in 2026, to make catch-up contributions to retirement plans as Roth (after-tax) contributions instead of pre-tax contributions.
Base elective deferral limits remain unchanged, with this rule applying only to catch-up contributions.
For individuals continuing employment later in their careers, this shift may influence tax planning and retirement savings strategy.
Super Catch-Up Contributions (Ages 60–63)
Textron employees between ages 60 and 63 may qualify for enhanced catch-up contribution limits under SECURE 2.0.
For example, eligible individuals may be able to contribute up to $11,250 in 2026 above standard catch-up limits.
This expanded window provides additional opportunity to increase retirement savings during later working years.
Required Minimum Distribution (RMD) Timing
Under current law, required minimum distributions (RMDs) begin at age 73 for those born between 1951 and 1959.
Textron employees who continue working before reaching RMD age may have additional flexibility to manage taxable income, evaluate Roth conversion strategies, and structure withdrawals. This flexibility can play a key role in long-term retirement tax planning.
Social Security Tax Thresholds
Depending on total income levels, up to 85% of Social Security benefits may become taxable. 2
For Textron employees planning retirement income, coordinating earned income, retirement withdrawals, and other income sources may help manage overall tax exposure. Income coordination may support more consistent cash flow and tax management.
State Tax Considerations and Relocation
State income tax differences can significantly affect retirement income planning. For example, New Jersey has relatively higher top marginal income tax rates, while Florida does not impose a state income tax. 3
For Textron employees considering relocation during retirement, these differences may influence after-tax income and long-term planning decisions.
Two Examples of Continuing to Work After Retirement
Example 1: Mei, 63
Mei, a former marketing executive with over 30 years of experience, transitioned into consulting after leaving full-time corporate employment. She now works part-time and earns approximately $185,000 annually. At 63, she falls within the SECURE 2.0 enhanced catch-up contribution age window.
This allows her to increase retirement savings beyond standard limits while still working. Her income also exceeds the $145,000 threshold that requires Roth catch-up contributions starting in 2026, influencing how she balances current tax obligations with long-term savings planning.
Mei’s continued consulting income also contributes to estate growth. With the federal estate exemption projected near $15 million per individual in 2026, she is evaluating multi-year gifting and charitable planning strategies.
Example 2: Robert (71) and Susan (65)
Robert and Susan, both former professionals, now earn approximately $60,000 annually through board stipends and consulting work. Their continued income allows them to reduce withdrawals from investment accounts while supplementing Social Security benefits.
Robert is approaching age 73, making RMD planning increasingly relevant. The couple is considering withdrawal timing strategies and Roth conversion opportunities prior to reaching mandatory distribution age.
They also relocated from New Jersey to Florida. The absence of state income tax in Florida compared to higher rates in New Jersey has improved their after-tax cash flow and overall retirement income efficiency.
The Big Picture: Strategy and Long-Term Planning
Many professionals, including those from Textron, choose to work later in life by personal choice rather than necessity. While continued employment provides purpose and structure, it also introduces additional financial planning complexity.
Coordinating earned income, retirement contributions, estate planning, and withdrawal timing may help align long-term financial goals. Changes in retirement account rules, estate exemptions, and tax laws make ongoing planning more important.
How The Retirement Group Can Help Textron Employees
Navigating retirement while continuing to work involves multiple considerations, including taxes, retirement accounts, estate planning, and income timing. The Retirement Group assists Textron employees in reviewing these factors and aligning them with long-term financial objectives.
If you are continuing to work or considering working past traditional retirement age, speaking with a financial professional may help clarify available planning strategies. Support may include retirement income planning, tax-aware withdrawal strategies, contribution planning, and estate preparation.
You may reach The Retirement Group at (800) 900-5867 to learn more about retirement planning considerations.
This content is for informational purposes only and does not constitute legal, tax, or investment advice. Individuals should consult their financial advisor, CPA, or tax professional regarding their specific situation.
Sources:
1. Fortune. ' More Americans are working past age 65 ,' by Martha Boudreau. Apr. 26, 2024.
2. Internal Revenue Service. “ IRS reminds taxpayers their Social Security benefits may be taxable .' IRS Tax Tip 2022-22, Feb. 9, 2022.
3. Intuit TurboTax. ' States with the Lowest Income Taxes and Highest Income Taxes .' May 19, 2026.
How does the retirement process at Textron Systems begin for employees, and what initial actions should they consider taking leading up to their retirement date? What are the key timelines and steps involved in initiating their retirement plan with Textron Systems, and how can these impact their retirement benefits?
Retirement Process Initiation: Employees planning retirement with Textron Systems should start by preparing 180 days before their desired retirement date. This involves confirming eligibility for the pension plan, ensuring it is within 180 days of their pension benefit commencement date, and reviewing their current pension benefit options on Fidelity's website. The retirement election process begins by contacting the Fidelity Benefits Service Center to request the necessary forms 45 to 90 days before the desired benefit start date(Textron Systems_Getting…).
What are the eligibility criteria for retiring employees under the Textron retirement plan, specifically regarding service hours and plan details? Furthermore, how do any past employment records with AVCO Corporation influence retiree benefits under Textron Systems?
Eligibility Criteria and AVCO Corporation Influence: Employees become eligible for the Textron Retirement Plan by completing at least 1,000 compensated hours per year. If the employee worked for AVCO Corporation before the merger with Textron, they may have additional retirement benefits, such as federal tax exclusions on part of their pension, if they kept their contributions in the AVCO Retirement Plan(Textron Systems_Getting…)(Textron Systems_Getting…).
How are the various pension benefit options structured within the Textron Systems retirement program, and what considerations should employees keep in mind when choosing between these options? Additionally, what happens if an employee wishes to change their payment option after retirement?
Pension Benefit Options: Textron Systems offers multiple pension payment options, including Single Life Annuity, Joint and Survivor Annuities, and Year Certain and Continuous Annuities. The chosen option is crucial, as it impacts retirement income and cannot be changed once the pension payments begin. Employees should consider their financial situation and consult a financial advisor before making a decision(Textron Systems_Getting…).
What documentation is necessary for Textron Systems employees to gather and submit in order to collect their pension benefits? How does the provision of accurate and complete data affect the processing of their retirement applications with Textron Systems?
Required Documentation: Employees must gather specific documents, such as birth certificates (for both the employee and spouse if applicable), marriage certificates, and a voided check for direct deposit. Providing accurate and complete information helps avoid delays in the retirement application process(Textron Systems_Getting…).
What tax implications should Textron Systems employees be aware of concerning their pension benefits, particularly in relation to IRS regulations? Additionally, how can employees explore the possibility of non-taxable portions of their retirement income?
Tax Implications: Pension payments are generally considered taxable income by the IRS and the state, except in some cases for former AVCO Corporation employees. Employees should consult a tax advisor for more specific information regarding potential tax exclusions(Textron Systems_Getting…).
In what ways does Textron Systems provide for the continuation of health insurance for spouses of retiring employees, particularly if the spouse is under 65? What specific documentation is required, and how does this process differ from regular health insurance enrollment?
Health Insurance for Spouses: If a retiring employee’s spouse is under 65, Textron Systems requires a letter from a Textron HR representative to verify prior coverage under the company's medical plan. This differs from regular enrollment, as the new insurer may require proof of prior coverage(Textron Systems_Getting…).
How does the decision to retire before the age of 65 affect an individual’s pension benefits within the Textron retirement plan? What specific reductions and conditions should potential retirees consider when making this decision?
Retirement Before Age 65: Retiring before age 65 results in a permanent reduction in pension benefits. Typically, the reduction is 5% per year under the age of 65, though some employees may be eligible for an unreduced pension based on certain age and service requirements(Textron Systems_Getting…).
What strategies can Textron Systems employees adopt to prepare for their transition into retirement in a way that ensures a smoother process? How can employees manage emotional and practical aspects of retirement to facilitate this major life change?
Retirement Transition Strategies: Employees are encouraged to start retirement planning well in advance to ensure a smooth transition. Engaging with financial planners, addressing emotional and practical aspects, and having clear goals can help manage the complexities of retirement(Textron Systems_Getting…).
What steps should employees take if they experience difficulties accessing their retirement benefits through Fidelity’s services as coordinated by Textron Systems? In what ways does Textron Systems support employees in resolving such issues?
Accessing Benefits Through Fidelity: If employees face difficulties accessing their retirement benefits through Fidelity, they should contact Fidelity’s Benefits Service Center. Textron Systems provides support through coordinators who help resolve such issues(Textron Systems_Getting…).
How can Textron Systems employees reach out for additional information about their retirement process and benefits packages? What are the specific contact details for reaching a retirement benefits coordinator at Textron, and what resources does the company offer to assist employees in their retirement planning?
Contacting Retirement Coordinators: Employees can reach out to the Fidelity Benefits Service Center at 1-866-698-9847 for assistance with their retirement benefits. Fidelity’s website, www.netbenefits.fidelity.com, is also available for reviewing pension options and benefits(Textron Systems_Getting…)(Textron Systems_Getting…).
For more information you can reach the plan administrator for Textron at , ; or by calling them at .
Help shape our next stories
Choose the topics you’d love to read more about. Your input helps us focus on content that matters to you.