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Raytheon Employees & RMDs: What You Need to Know Before Age 73

'Raytheon employees can stay ahead of required minimum distributions by planning early and thoughtfully coordinating withdrawals with their broader retirement income goals.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Raytheon employees can benefit from understanding RMD rules early so they can thoughtfully incorporate withdrawals into a long-term income plan that fits their personal goals and timing.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

When and how required minimum distributions (RMDs) must be taken.
Which retirement accounts are subject to RMD rules.
Strategies to thoughtfully use RMD withdrawals in retirement.

Under IRS rules, required minimum distributions (RMDs) begin at age 73 for those born between 1951 and 1959. Under these rules, you must take out a specific amount of money annually from tax-deferred retirement plans, such as IRAs, 401(k)s, and 403(b)s, once you turn 73. Answers to common questions are provided below to help you move forward confidently.

What is a required minimum distribution (RMD)?

A required minimum distribution (RMD) is a set amount of money that the IRS mandates you withdraw each year from your tax-deferred retirement accounts beginning at age 73, including accounts you may have contributed to while working for Raytheon.

When do I have to take my RMD?

Every year on December 31, your RMD must be taken. You can wait until April 1 of the year after your 73rd birthday to take your first RMD—but only your first. Delaying may result in taking two RMDs in the same year, which could increase your taxable income.

If I keep working, do I still need to take an RMD?

If you continue working past age 73 and remain in an employer-sponsored plan with your current employer, you may be able to delay RMDs from that account if:

- You are still actively employed

- You own no more than 5% of the company

- The employer plan permits delayed RMDs

This applies only to the plan with your current employer—not to IRAs or plans from former employers.

How is my RMD calculated?

Your RMD is generally calculated by dividing your retirement account balance as of December 31 of the previous year by a life-expectancy factor published by the IRS. The IRS Uniform Lifetime Table is typically used unless a spouse more than 10 years younger is the sole beneficiary.

What can I do with my RMD once I take it?

It helps to think through your options before withdrawing your RMD. For example, Raytheon professionals may:

Invest it: Place funds into a taxable investment account or contribute to a 529 plan (if eligible)

Spend it: Apply funds to retirement lifestyle needs

Gift it: Use a Qualified Charitable Distribution (QCD) directly from an IRA, which can satisfy RMD rules starting at age 70½ and is excluded from taxable income. For 2025, QCDs may reach up to $108,000 per person ¹

Which accounts require RMDs?

RMDs generally apply to:

- Most 401(k) and 403(b) plans

- Traditional, rollover, SIMPLE, and SEP IRAs

- Certain small business retirement accounts

Roth accounts in workplace plans—like a Roth 401(k)—do not require RMDs for the original owner starting in 2024. Beneficiaries of inherited Roth accounts may still need to withdraw funds.

What if I inherit an IRA?

Many general RMD rules still apply to inherited accounts. Your required withdrawal schedule depends on your relationship to the original account owner and applicable IRS inheritance rules.

Can I take all my RMDs from one account?

It depends on the account type:

IRAs: Can be aggregated and withdrawn from one or multiple IRA accounts

403(b)s: May be aggregated but calculated separately

401(k)s: Must be calculated and withdrawn from each account individually—including any Raytheon balance still held

Extra withdrawals do not count toward future years’ RMDs.

Are RMDs taxed?

Yes. RMDs are taxed as ordinary income and may be subject to both federal and state income taxes. Taking two RMDs in one year, often caused by delaying the first, can increase your taxable income.

Need help creating your RMD strategy?

Understanding RMDs can influence how you structure your retirement income—especially for Raytheon employees shifting from workplace plans to personal withdrawal strategies. The Retirement Group can help you build an approach that aligns with your situation. Call us at (800) 900-5867 to get started.

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Sources:

1. Fidelity Charitable. ' What is a qualified charitable distribution? ' 1998-2025.

2. Financial Industry Regulatory Authority (FINRA). “Required Minimum Distributions: Know Your Deadlines.” FINRA.org , 22 Jan. 2025, www.finra.org/investors/insights/required-minimum-distributions .

3. Fidelity Viewpoints Editorial Team. “SECURE 2.0: Rethinking Retirement Savings.” Fidelity Learning Center , 20 May 2025, www.fidelity.com/learning-center/personal-finance/secure-act-2 .

4. Internal Revenue Service. “Give More, Tax-Free: Eligible IRA Owners Can Donate up to $105,000 to Charity in 2024.” IRS Newsroom , IR-2024-289, 14 Nov. 2024, www.irs.gov/newsroom/give-more-tax-free-eligible-ira-owners-can-donate-up-to-105000-to-charity-in-2024 .

5. Myers, Elizabeth A. Required Minimum Distribution (RMD) Rules for Original Owners of Retirement Accounts. Congressional Research Service, 29 Aug. 2024, www.congress.gov/crs-product/IF12750 .

6. TIAA. “FAQs About Required Minimum Distributions (RMD).” TIAA.org , 2025, www.tiaa.org/public/support/faqs/required-minimum-distributions .

What type of retirement savings plan does Raytheon offer to its employees?

Raytheon offers a 401(k) Savings Plan to help employees save for retirement.

Does Raytheon provide a company match for contributions made to the 401(k) plan?

Yes, Raytheon matches employee contributions to the 401(k) plan up to a certain percentage.

How can Raytheon employees enroll in the 401(k) Savings Plan?

Raytheon employees can enroll in the 401(k) Savings Plan through the company's benefits portal or by contacting the HR department.

What is the minimum contribution percentage required for Raytheon employees to participate in the 401(k) plan?

Raytheon typically requires a minimum contribution percentage of 1% to participate in the 401(k) Savings Plan.

Can Raytheon employees change their contribution amounts to the 401(k) plan at any time?

Yes, Raytheon employees can change their contribution amounts to the 401(k) plan during designated enrollment periods or as allowed by the plan rules.

What investment options are available to Raytheon employees within the 401(k) plan?

Raytheon offers a variety of investment options within the 401(k) plan, including mutual funds, target-date funds, and company stock.

Is there a vesting schedule for the company match in Raytheon’s 401(k) plan?

Yes, Raytheon has a vesting schedule for the company match, which means employees must work for a certain number of years to fully own the matched contributions.

Can Raytheon employees take loans from their 401(k) accounts?

Yes, Raytheon allows employees to take loans from their 401(k) accounts under certain conditions.

What happens to Raytheon employees' 401(k) accounts if they leave the company?

If Raytheon employees leave the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Raytheon plan if eligible.

Are there any fees associated with Raytheon’s 401(k) Savings Plan?

Yes, there may be administrative fees and investment-related fees associated with Raytheon’s 401(k) Savings Plan, which are disclosed in plan documents.