Retirement Guide for Boeing Employees || The Retirement Group

In this comprehensive retirement guide for Boeing employees, we cover the most critical factors to take into account when deciding on the proper time to retire from Boeing.

From tax rates to health care, inflation, and details of the Boeing Pension Plan, this guide is designed to answer your most pressing retirement questions.

While we are not affiliated with Boeing, The Retirement Group has extensive experience working with Boeing employees as they move toward and into retirement.

People in your city, your state need to keep abreast of changes made by the IRS each year. Here are some important updates for 2026:

Tax Code Changes 2026

Standard deduction. In 2026, the standard deduction increased to $16,150 for single filers and married filing separately, $32,300 for joint filers, and $24,200 for heads of household.
Additional deduction. Taxpayers who are over the age of 65 or blind can add an additional $1,650 to their standard deduction. This amount jumps to $2,000 if they are also unmarried or not a surviving spouse.
Cash contributions to charity. The special deduction that allowed non-itemizers to deduct up to $300 in cash donations to charity - or $600 for those married filing jointly - has expired.

Child Tax Credit Updates for 2026

If you are interested in mitigating your tax burden, you may benefit from the Child Tax Credit. Although it only applies to individuals with children under the age of 18, it can be relevant to those who are approaching retirement if they have minor children—or if their children have children!

Here are the 2026 updates:

Maximum credit per qualifying child: $2,000 for children aged five and under; $3,000 for children aged six through 17.
Child Tax Credit eligibility. As a parent or guardian, you are eligible for the Child Tax Credit if your adjusted gross income is less than $200,000, or $400,000 if married filing jointly.
Partial refundability. If your Child Tax Credit is greater than your tax, you can receive up to $1,600 as a cash refund.

Optimize your retirement contributions

Contributing to Boeing's 401(k) plan can help cut this year's tax bill significantly. With the right planning, these benefits can be compounded over time. In 2026, the amount you can save increased:

2026 limit. Individuals can contribute $24,500 to their 401(k) plans in 2026.
Catch-up contributions. Employees age 50 and over can contribute an extra $8,000, bringing their total limit to $32,500. For those who turn 60 - 63 years of age during calendar year 2026, their catch up contribution is $11,250, for a combined total of $35,750.
A major opportunity. Lowering your taxable income by up to $34,750 means less of your money is immediately taxed. As shown in the table below, this could save you thousands on your current tax bill.

2026 Federal Income Tax Brackets

Rate	Single	Married Filing Jointly	Married Filing Separately	Head of Household
10%	$0 – $12,400	$0 – $24,800	$0 – $12,400	$0 – $17,700
12%	$12,401 – $50,400	$24,801 – $100,800	$12,401 – $50,400	$17,701 – $67,450
22%	$50,401 – $105,700	$100,801 – $211,400	$50,401 – $105,700	$67,451 – $105,700
24%	$105,701 – $201,775	$211,401 – $403,550	$105,701 – $201,775	$105,701 – $201,775
32%	$201,776 – $256,225	$403,551 – $512,450	$201,776 – $256,225	$201,776 – $256,200
35%	$256,226 – $640,600	$512,451 – $768,700	$256,226 – $384,350	$256,201 – $640,600
37%	Over $640,600	Over $768,700	Over $384,350	Over $640,600

Source: IRS Revenue Procedure 2025-32, as amended by the One, Big, Beautiful Bill Act.

Dealing with Inflation

Inflation degrades purchasing power over time, meaning the same things cost more year after year. While inflation is difficult to deal with as a working adult, managing it becomes harder in retirement.

To maintain the same standard of living in retirement after leaving Boeing, you need to factor rising costs into your plan. While the Federal Reserve targets 2% inflation each year, the scorching inflation of the early 2020s reminded us that Fed targets are not a guarantee.

When nearing or in retirement, it's important to keep track of the rate of inflation, especially in specific areas, like health care, where prices tend to outpace inflation. To avoid unexpected surprises down the road, speak with a qualified financial advisor when constructing your holistic plan for retirement from Boeing.

*Sources: IRS.gov, Yahoo, Bankrate, Forbes

Retirement planning is a verb; consistent action must be taken whether you’re 20 or 60.

The truth is that most Americans don’t know how much to save or the amount of income they’ll need to retire.

No matter where you stand in the planning process, or your current age, we designed this guide to provide you with a solid overview of the steps you can take toward a comfortable retirement. With the right resources, you can simplify your transition from Boeing into retirement and get the most from your benefits in your city, your state.

You know you need to be saving and investing, especially since time is on your side the sooner you start. But even if you've been investing for years, the game changes entirely once you switch from saving to spending.

That's where The Retirement Group comes in. We've partnered with Wealth Enhancement to offer a wide range of retirement planning resources. With a qualified, competent, and caring advising team by your side, Boeing employees in the United States can make the most of what they've saved, and better plan for what they still need.

As decades go by, you’re likely full swing into your career at Boeing, and your income probably reflects that. However, the challenges of saving for retirement start coming from large competing expenses: a mortgage, raising children, and saving for their college in your city, your state.

One of the classic planning conflicts is saving for retirement versus saving for college. Most financial planners will tell you that retirement from your company should be your top priority because your child can usually find support from financial aid while you’ll be on your own to fund your retirement.

The amount you invest towards your retirement depends on your unique financial situation and goals. However, as a rule of thumb, consider investing at least of 10% of your salary toward retirement through your 30s and 40s.

As you enter your 50s and 60s, you’re ideally at your peak earning years with some of your major expenses, such as a mortgage or child-rearing, behind you or soon to be in the rearview mirror. This can be a good time to consider whether you have the ability to boost your retirement savings goal to 20% or more of your income. For many people, this could potentially be the last opportunity to stash away funds.

In 2026, workers age 50 or older can invest up to $24,500 into their retirement plan/401(k), and once they meet this limit, they can add an additional $8,000 in catch-up contributions for a combined annual total of $32,500. These limits are adjusted annually for inflation.

401k are powerful tools for your retirement savings plan. They provide three main benefits:

Compound growth opportunities (as seen above)
Tax saving opportunities
Matching contributions

Matching contributions are just what they sound like: your company matches your own 401k contributions, up to a specified amount or percentage, using corporate funds.

For example, let's say Boeing will match your
contributions dollar-for-dollar up to 10% of your annual pay. If your salary is $50,000 and you invest $5,000 in
your 401(k), Boeing will match that $5,000 investment - resulting in a $10,000 increase to your 401(k) balance. However, if you invest only $2,500 for the year, you'll only receive a $2,500 match - leaving as much as $5,000 on the table.

Unfortunately, many people fail to take advantage of their company's matching contributions because they’re not contributing the required minimum to receive the full company match.

Research published by Principal Financial Group found that 62% of workers deemed company 401k matches very important to reaching their retirement goals. However, according to Bank of America's "Financial Life Benefit Impact Report", despite 58% of eligible employees participating in a 401k plan, 61% contributed less than $5,000 during the year. The study also found that fewer than 1 in 10 participants’ contributions reached the ceiling on elective deferrals under IRS Section 402(g), which is $24,500 for 2026.

A study from titled “Missing Out: How Much Employer 401k Matching Contributions Do Employees Leave on the Table?”, revealed that employees who don’t maximize their company match typically leave $1,336 of extra retirement money on the table each year. That amount of money could make a serious difference to your retirement portfolio.

If you want to make the most of the opportunities that Boeing offers you before you retire, reach out today and schedule a call with The Retirement Group.

Whether you’re changing jobs or retiring from Boeing, knowing what to do with your hard-earned retirement savings can be difficult. A company-sponsored pension plan may make up the majority of your retirement savings, but how much do you really know about that plan and how it works?

There are seemingly endless rules that vary from one plan to the next, early out offers, interest rate impacts, age penalties, and complex tax impacts.

Growing your investment balance and reducing taxes is the key to a successful retirement plan spending strategy. At The Retirement Group, we can help you understand how your company's pension plan fits into your overall financial picture and how to make that plan work for you.

Boeing’s Defined Benefit Final Average Pay Pension Plan

The Boeing Company’s defined benefit pension plan, which uses a Final Average Pay (FAP) formula, is designed to provide employees with a reliable and predictable retirement income based on their earnings and length of service.
Here’s a detailed explanation of how the FAP formula works, including a sample calculation.

Components of the Final Average Pay Formula
- *Final Average Pay (FAP): This is the average of the employee’s highest earnings over a specified period, typically the last five years of service or the highest five consecutive years within the last ten years.
  
  *Years of Service (YOS): The total number of years an employee has worked for Boeing and contributed to the pension plan.
  
  *Benefit Multiplier: A percentage used to calculate the pension benefit, reflecting the portion of the FAP an employee earns for each year of service.
- How the FAP Formula Works
- The basic formula for calculating the annual pension benefit under the FAP formula is:
- Final Average Pay × Years of Service × Benefit Multiplier
- =
- Annual Pension Benefit
- Sample Calculation
- Assume the following:
  
  *Final Average Pay (FAP) is $90,000
  
  *Years of Service (YOS) is 30 years
  
  *Benefit Multiplier is 1.5% (or 0.015)
- Annual Pension Benefit = $90,000 × 30 × 0.015=$40,500
- The annual pension benefit for an employee with a Final Average Pay of $90,000, 30 years of service, and a 1.5% benefit multiplier would be $40,500.
- Additional Considerations
  Vesting Requirements: Employees are required to meet certain vesting requirements to be eligible for pension benefits, requiring a minimum number of years of service.
  
  Early Retirement Penalties:
- If an employee opts for early retirement, the pension benefit may be reduced. For example, if the normal retirement age is 65 and an employee retires at 60, a reduction factor (e.g., 5% per year) is applied for each year before the normal retirement age.
  
  Cost-of-Living Adjustments (COLA): Some pension plans may include COLA to adjust benefits based on inflation, although this is not always guaranteed.
- Age Penalties and Reductions in Boeing’s Defined Benefit Final Average Pay Pension Plan
- The Boeing Company’s Defined Benefit Final Average Pay (FAP) Pension Plan provides retirement benefits based on an employee’s years of service and highest average earnings. If an employee chooses to retire before reaching the plan’s normal retirement age, their pension benefits may be subject to reductions. These reductions account for the longer period over which the benefits will be paid. Here’s a detailed explanation of how age penalties and reductions work, including a sample calculation.
- Normal Retirement Age and Early Retirement
- *Normal Retirement Age (NRA): This is typically defined as age 65. Employees retiring at or after this age receive their full pension benefits as calculated by the FAP formula.
  
  *Early Retirement: Employees can retire before the NRA, usually starting from age 55. However, early retirement results in a reduced pension benefit due to the extended period of payments.
- Reduction Factors for Early Retirement
- When an employee opts for early retirement, the pension benefit is reduced using a specified reduction factor for each year they retire before the NRA. These factors are typically expressed as a percentage per year.
  
  Example of Reduction Factors:
  If an employee retires 5 years early, the reduction might be 6% per year.
  
  Example of Early Retirement Reduction:
- Assume:
  
  Final Average Pay (FAP): $90,000
  
  Years of Service (YOS): 30 years
  
  Benefit Multiplier: 1.5% (or 0.015)
  
  Normal Retirement Age: 65
  
  Early Retirement Age: 60
  
  Reduction Factor: 6% per year
  
  Step-by-Step Calculation:
  
  Calculate Full Pension Benefit: Full Pension Benefit = 90,000 × 30 × 0.015 = $40,500
  
  Calculate Total Reduction: Years before NRA: 65 - 60 = 5 years
  
  Total Reduction Percentage: 6% x 5 years = 30%
  
  Calculate Reduced Pension Benefit:
  
  Reduction Amount: $40,500 x 30% = $12,150
  
  Reduced Pension Benefit: $40,500 - $12,150 = $28,350
  
  An employee retiring at age 60 would receive an annual pension benefit of $28,350 instead of the full $40,500.
- Sources
  The specifics of Boeing’s pension plan, including the Final Average Pay formula, are detailed in the company’s Summary Plan Description (SPD) and other retirement plan documents provided to employees. For publicly available information, refer to Boeing’s Retirement Benefits page. Detailed information can also be found in the Boeing Pension Value Plan (PVP) Summary Plan Description and other related documents available to employees through Boeing’s HR resources.

Boeing Stock Options and Restricted Stock Units (RSUs)
Boeing offers stock options and Restricted Stock Units (RSUs) as part of its compensation package to attract and retain talented employees, incentivizing them to align their interests with the company’s long-term success. Here’s an explanation of these equity compensation plans, including their availability and eligibility criteria.

Stock Options at Boeing
1. What Are Stock Options?

Stock options give employees the right to purchase Boeing shares at a predetermined price (the exercise or strike price) after a specified vesting period. The goal is to motivate employees to contribute to the company’s growth, as the value of the options increases with the stock price.

2. How They Work:

*Grant Date: The date on which the options are granted to employees.

*Vesting Period: The time employees must wait before they can exercise their options. Boeing typically has a vesting schedule that spans several years.

*Exercise Price: The price at which employees can purchase the stock, usually set at the market price on the grant date.

*Expiration Date: The date by which employees must exercise their options before they expire, often 10 years from the grant date.

3. Example:

Grant Date: January 1, 2024

Number of Options: 1,000

Exercise Price: $200 per share

Vesting Period: 4 years (25% per year)

Expiration Date: January 1, 2034

If the stock price rises to $300 per share, the employee can buy shares at $200 and potentially sell them at $300, realizing a profit of $100 per share.
Restricted Stock Units (RSUs) at Boeing
1. What Are RSUs?

RSUs are company shares granted to employees with certain restrictions, typically a vesting period. Unlike stock options, RSUs have intrinsic value upon vesting, as they represent actual shares of stock.

2. How They Work:

Grant Date: The date on which the RSUs are granted.

Vesting Schedule: The period over which RSUs vest, often based on tenure or performance milestones. Commonly, RSUs vest over three to five years.

Settlement: Upon vesting, employees receive actual shares of Boeing stock.

3. Example:

Grant Date: January 1, 2024

Number of RSUs: 500

Vesting Schedule: 5 years (20% per year)

Each year, 20% of the RSUs (100 shares) vest. If the stock price is $250 per share at the end of the first year, the vested shares would be worth $25,000.
Eligibility and Availability
1. Who Can Get Them?

Executives: Senior executives and top management often receive significant stock options and RSUs as part of their compensation packages.

Key Employees: High-performing employees and those in critical roles may be granted stock options and RSUs to retain and motivate them.

Broad-Based Grants: Occasionally, Boeing may offer stock options or RSUs to a broader group of employees to foster ownership and align employee interests with shareholders.

2. Performance and Tenure-Based Awards:

Performance-Based RSUs: Tied to achieving specific company performance metrics such as revenue targets or earnings per share (EPS) growth.

Tenure-Based Awards: Vest based on the length of service with the company, encouraging long-term employment.
Tax Considerations
1. Stock Options:

Non-Qualified Stock Options (NSOs): Taxed as ordinary income at exercise.

Incentive Stock Options (ISOs): Potentially favorable tax treatment if certain conditions are met, such as holding periods.

2. RSUs:

Taxed as ordinary income upon vesting, based on the fair market value of the shares.
Conclusion
Boeing’s stock options and RSUs are powerful tools for attracting, retaining, and motivating employees by aligning their interests with the company’s success. These equity awards are typically granted to executives, key employees, and sometimes broader employee groups, based on performance and tenure. Understanding the mechanics and tax implications of these awards helps employees maximize their benefits and align their efforts with the company’s growth objectives.

Sources
For detailed and specific information, refer to Boeing’s annual reports, proxy statements, and employee benefits documents available on Boeing’s Investor Relations page and through internal company resources
Boeing's Deferred and Executive Compensation Plan (409A Plan)
Overview: Boeing's Executive Supplemental Savings Plan (ESSP), effective January 1, 2020, is a nonqualified deferred compensation plan designed to provide supplemental retirement benefits for a select group of management and highly compensated employees. The plan is subject to Section 409A of the Internal Revenue Code, which governs the timing of deferral elections and distributions to avoid premature taxation.
Eligibility:

Eligible Employees: Senior executives and highly compensated employees designated on the E-Series Payroll.

Ineligibility: Elected officers and employees hired or promoted onto the E-Series Payroll on or after January 1, 2020, are not eligible for certain contributions under the plan.
Components of the Plan:

*Restoration Benefits:

These restore benefits limited by IRS sections 415 and 401(a)(17) under Boeing’s Voluntary Investment Plan (VIP).

*Executive SSP+ Company Contributions:

These provide additional contributions based on a percentage of annual incentive plan payments for eligible employees.

*DC SERP Contributions:

Supplemental retirement benefits for a select group of management and highly compensated employees.

*Extra Deferrals:

Allow eligible employees to defer base salaries and awards under incentive compensation plans.
Deferral Elections:

*Types of Deferrals: Employees can defer base salary, cash incentives, and performance awards.

*Maximum Deferrals: Base Salary: Up to 50%; Cash Incentive: Up to 100%; Performance Awards: Up to 100%

*Election Periods: Elections must be made within specified periods, and changes are limited to ensure compliance with 409A regulations.
Company Contributions:

*Restoration Matching Contributions: Matched to employee deferrals of base salary.

*Restoration SSP+ Contributions: Provided based on base salary, subject to IRS limits.

*Executive SSP+ Contributions: Provided based on cash incentives.

*DC SERP Contributions: Additional contributions for eligible employees based on their service and compensation.
Vesting and Forfeiture:

*Vesting: Generally, contributions vest immediately or after specified periods of service.

*Forfeiture: Unvested amounts can be forfeited upon termination for reasons other than death, disability, or layoff.
Distributions:

*Distributions can be made in lump sums or installments.

*Timing is based on specific elections made by the employee, subject to 409A requirements.

*A six-month delay applies for distributions to specified employees (top-paid officers).

Example Calculation: Assume an executive with a base salary of $300,000 and an annual cash incentive of $200,000. If the executive defers 10% of their base salary and 50% of their cash incentive, the deferred amounts would be:

*Base Salary Deferral: $30,000

*Cash Incentive Deferral: $100,000

If the executive also receives a Restoration SSP+ Company Contribution of 5% of their base salary (above IRS limits), the contribution would be:

Restoration SSP+ Contribution: $15,000 (5% of $300,000)

Source
The detailed information is summarized from "The Boeing Company Executive Supplemental Savings Plan" document. For further details and verification, refer to the official documentation provided by Boeing's HR department and compliance resources.

Lump Sum vs. Annuity

Boeing employees in your city, your state who are eligible for a pension are often given the choice to either receive pension payments for life or take a lump sum dollar amount up front for the "equivalent" value of the pension. The idea for those who choose a lump sum is that you could take the money, roll it over to an individual retirement account (IRA), invest it, and generate your own cash flows that enable you to take systematic withdrawals following your retirement from Boeing.

On the plus side, a lump sum payment gives you complete flexibility over the funds, potentially allowing you to generate a greater retirement cash flow than you would receive with an annuity. Additionally, if something happens to you, any unused account balance will be available to a surviving spouse or heirs. However, if you fail to invest the funds for sufficient growth, there’s a danger that the money could run out during your lifetime - and you may regret not having held onto the pension’s “income for life” guarantee.

Annuity-Product-1024x546-removebg-preview-1

For its part, a pension annuity provides you with a steady stream of income guaranteed to continue for life, as long as the pension plan itself remains solvent and doesn’t default. So whether you live 10, 20, 30, or more years after leaving Boeing, you don’t have to worry about the risk of outliving your money.

However, taking an annuity also comes with some drawbacks. Once you annuitize your pension, you can no longer access the lump sum. Additionally, unlike Social Security benefits, not all company pensions contain a cost of living allowance (COLA). That means the dollar amount of your monthly pension will remain the same throughout your retirement, losing its purchasing power in the face of inflation.

Ultimately, your decision will depend on what return must be generated on that lump sum to replicate the payments of the annuity. After all, if a return of only 1% to 2% on your lump sum can create the same lifetime cash flows you'd see with an annuity, you're at less risk of outliving the lump sum after leaving Boeing, even if you withdraw from it for life. However, if the annuity payments can only be matched by earning a much higher and possibly riskier rate of return, there is a greater risk those returns won’t manifest and you could run out of money.

Interest Rates and Life Expectancy

Current interest rates, as well as your life expectancy at retirement, have a significant impact on lump sum payouts of defined benefit pension plans.

Rising interest rates have an inverse relationship to pension lump sum values. All else being equal, a higher interest rate will consequently produce a lower lump sum. The reverse is also true: decreasing or lower interest rates will increase pension lump sum values. This makes interest rates an important consideration when deciding between a lump sum or annuity payout from your pension plan.

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Given the current complex interest rate environment, we strongly suggest discussing your options with The Retirement Group. We monitor rates on a daily basis and keep you updated on the monthly changes. We can also provide a complimentary Cash Flow Analysis to show you how various retirement dates may play out.

By knowing where you stand, you can make a more prudent decision regarding the optimal time to retire, and which pension distribution option best meets your needs.

401k Savings Plan

Boeing employees in your city, your state are encouraged to enroll in the company 401k plan as soon as they are eligible. Once you enroll, Boeing will match your contributions dollar-for-dollar on the first 10% of base and incentive pay that eligible non-union employees contribute to their 401k.

The Boeing 401k Retirement Plan also features a variety of investment options you can choose from, depending on your financial goals and risk tolerance.

In addition, if you have an account in an eligible plan of a former employer, you may be able to roll that plan over into the Boeing 401k Retirement Plan.

When you retire from Boeing, if you have balances in your 401k plan, you will receive a Participant Distribution Notice in the mail. This notice will show the current value that you are eligible to receive from each plan and explain your distribution options. It will also tell you what you need to do to receive your final distribution. Please call The Retirement Group at (800)-900-5867 for more information and we can get you in front of a Boeing-focused retirement advisor.

Next Steps:

Watch for your Participant Distribution Notice and Special Tax Notice Regarding Plan Payments. These notices will help explain your options and what the federal tax implications may be for your vested account balance.
Read our guides: "What has Worked in Investing" & "8 Tenets when picking a Mutual Fund".
To learn about your distribution options, call The Retirement Group at (800)-900-5867.
Read through our e-book for more information on "Rollover Strategies for 401(k)s".
Use the Online Beneficiary Designation to make updates to your beneficiary designations, if needed.

Over half of plan participants in your city, your state admit they don’t have the time, interest, or knowledge needed to manage their 401k portfolio. But the benefits of getting help go beyond convenience. diversification-removebg-preview

A Charles Schwab study found several positive outcomes common to those using independent professional advice. They include:

Improved savings rates – 70% of participants who obtained 401k advice increased their contributions.
Increased diversification – Participants who managed their own portfolios invested in an average of just under four asset classes, while participants in advice-based portfolios invested in a minimum of eight asset classes.
Increased likelihood of staying the course – Getting advice raised the odds of participants staying true to their investment objectives, making them less reactive during volatile market conditions and more likely to remain in their original 401k investments during a downturn.

Don't try to do it alone. Get help with your Boeing 401k plan investments. Your nest egg will thank you.

Strategies to leverage your 401k before retirement

Did you know that there are ways you can tap into and leverage your 401k funds before retirement? Although these strategies may not apply to every situation, you may be able to use your 401k to bridge certain gaps in your financial plan.

In-Service Withdrawals and 401k rollovers

An in-service withdrawal is when an employee takes money from their 401k while they're still employed. In-service withdrawals are a way to access money from your 401k early, and potentially roll it over into a different account type:

Eligibility. In-service withdrawals are generally available to employees after they reach age 59 and a half, so they avoid the 10% early withdrawal penalty. However, some plans allow for earlier access to 401k funds under circumstances such as financial hardship.
IRA rollover. These withdrawals are often used to roll over funds into an IRA or another retirement account while you're still employed. A direct rollover can avoid the 10% early withdrawal penalty, as well as any mandatory tax withholding. Rolling over your 401k into an IRA is a popular option for those looking for more control over their retirement savings. While your 401k might limit investment choices, IRAs often offer a broader range of investments.
Tax implications. If your in-service withdrawal is not rolled over into an IRA, you may face income tax on the amount withdrawn.

It’s important to know that certain withdrawals are subject to regular federal income tax and you may also be subject to an additional 10% penalty tax depending on your age.

You can determine if you’re eligible for a withdrawal, and request one, online or by calling the Boeing Benefits Center in the United States. Your plan summary outlines more information and possible restrictions on rollovers and withdrawals.

You should also know that the plan administrator reserves the right to modify the rules regarding withdrawals at any time, and may further restrict or limit the availability of withdrawals for administrative or other reasons. All plan participants will be advised of any such restrictions, which apply equally to all Boeing employees.

Borrowing from your 401k

Should you? If you need money quickly due to a job loss, serious health emergency, or other reason, borrowing from your 401k can be an option.

Banks will make you jump through many hoops for a personal loan, and credit cards charge too much interest. If these are your only options for much-needed cash, your 401k balance might start looking like a usable asset.

Unlike an in-service withdrawal, a loan must be paid back. However, they are not taxable (unless you fail to repay them). Yet, despite the potential benefits, taking a loan from your 401k may also come with some drawbacks.

Borrowing from the future. First and foremost, you may be setting your retirement plan back by some time if you take money from your future and use it today.
Lost growth potential. Even though you'll repay the loan, those funds will miss out on potential growth through investments during the repayment period. This can create a gap in your portfolio, especially if the market performs well while your money is out of the account.
Repayment issues. If you leave your employer or lose your job, you may be forced to pay the full loan within a short timeframe. If you're unable to, the loan can be treated as an early withdrawal and be penalized and taxed as such.

Borrowing from your 401k should be considered a last resort. If you're concerned that you may need to take a loan from your 401k to make ends meet, reach out to an advisor at The Retirement Group today.

Net Unrealized Appreciation (NUA)

When you qualify for a distribution from your 401k plan, you have three options: Pads with color diagrams and color shining on background-3

Roll-over your qualified plan to an IRA and continue deferring taxes.
Take a distribution and pay ordinary income tax on the full amount.
Take advantage of NUA and reap the benefits of a more favorable tax structure on gains.

How does Net Unrealized Appreciation work?

First, you must be eligible for a distribution from your qualified company-sponsored plan, which typically happens at retirement age. Generally, you would take a lump sum distribution from the plan, distributing all assets from the plan during a one-year period. The portion of the plan that is made up of mutual funds and other investments can be rolled into an IRA for further tax deferral. The highly appreciated company stock is then transferred to a non-retirement account.

The tax benefit comes when you transfer the company stock from a tax-deferred account to a taxable account. At this time, you apply NUA and you incur an ordinary income tax liability on only the cost basis of your stock. The appreciated value of the stock above its basis is not taxed at the higher ordinary income tax but at the lower long-term capital gains rate, currently 15%. This could mean a potential savings of over 30%.

You may be interested in learning more about NUA with a complimentary one-on-one session with a financial advisor from The Retirement Group.

IRA Withdrawal

IRA

Your retirement assets may be spread across several retirement accounts: IRAs, 401ks, taxable accounts, and others.

So, what is the most efficient way to take your retirement income after leaving Boeing?

This question relates to something called withdrawal sequencing, and it's a problem we're well-equipped to handle at The Retirement Group.

You may want to consider meeting your income needs in retirement by first drawing down taxable accounts rather than tax-deferred accounts. This may help your retirement assets with your company last longer as they continue to potentially grow tax deferred.

You will also need to plan to take the required minimum distributions (RMDs) from any company-sponsored retirement plans and traditional or rollover IRA accounts when you reach age 73.

Two flexible distribution options for your IRA

When you need to draw on your IRA for income or to take your RMDs, you have a few choices. Regardless of what you choose, IRA distributions are subject to income taxes and may be subject to penalties and other conditions if you’re under 59½.

Option 1: Partial withdrawals: Withdraw any amount from your IRA at any time. If you’re 73 or over, you’ll have to take at least enough from one or more IRAs to meet your annual RMD.

Option 2: Systematic withdrawal plans: Structure regular, automatic withdrawals from your IRA by choosing the amount and frequency to meet your income needs after retiring from Boeing. If you’re under 59½, you may be subject to a 10% early withdrawal penalty (unless your withdrawal plan meets Code Section 72(t) rules).

Your tax advisor can help you understand distribution options, determine RMD requirements, calculate RMDs, and set up a systematic withdrawal plan.

Health Savings Accounts (HSAs) are often celebrated for their utility in managing health care expenses, particularly for those with high-deductible health plans. However, their benefits extend beyond medical cost management, positioning HSAs as a potentially superior retirement savings vehicle compared to traditional retirement plans like 401(k)s, especially after employer matching contributions are maxed out.

Understanding HSAs

HSAs are tax-advantaged accounts designed for individuals with high-deductible health insurance plans. For 2026, the IRS defines high-deductible plans as those with a minimum deductible of $1,700 for individuals and $3,400 for families. HSAs allow pre-tax contributions, tax-free growth of investments, and tax-free withdrawals for qualified medical expenses - making them a triple-tax-advantaged account.

The annual contribution limits for HSAs in 2026 are $4,400 for individuals and $8,750 for families, with an additional $1,000 allowed for those aged 55 and older. Unlike Flexible Spending Accounts (FSAs), HSA funds do not expire at the end of the year; they accumulate and can be carried over indefinitely.

Comparing HSAs to 401(k)s Post-Matching

Once an employer's maximum match in a 401(k) is reached, further contributions yield diminished immediate financial benefits. This is where HSAs can become a strategic complement. While 401(k)s offer tax-deferred growth and tax-deductible contributions, their withdrawals are taxable. HSAs, in contrast, provide tax-free withdrawals for medical expenses, which often constitute a significant portion of retirement costs.

HSA as a Retirement Tool

Post age 65, the HSA flexes its muscles as a robust retirement tool. Funds can be withdrawn for any purpose, subject only to regular income tax if used for non-medical expenses. This flexibility is similar to traditional retirement accounts, but with the added advantage of tax-free withdrawals for medical costs - a significant benefit given the odds of facing rising health care expenses in retirement.

Furthermore, HSAs do not have Required Minimum Distributions (RMDs), unlike 401(k)s and Traditional IRAs, offering more control over tax planning in retirement. This makes HSAs particularly advantageous for those who might not need to tap into their savings immediately at retirement or who want to minimize their taxable income.

Investment Strategy for HSAs

Initially, it's prudent to invest conservatively within an HSA, focusing on maintaining sufficient liquid funds to cover near-term deductibles and other out-of-pocket medical expenses. However, once a financial cushion is established, treating the HSA like a retirement account by investing in a diversified mix of stocks and bonds can enhance the account's growth potential over the long term.

Using HSAs in Retirement

In retirement, HSAs can cover a range of expenses:

Health Care Costs-Pre Medicare: HSAs can pay for health care costs to bridge you to Medicare.
Health Care Costs-Post Medicare: HSAs can pay for Medicare premiums and out-of-pocket medical costs, including dental and vision, which are often not covered by Medicare.
Long-Term Care: Funds can be used for qualified long-term care services and insurance premiums.
Non-Medical Expenses: After age 65, HSA funds can be used for non-medical expenses without incurring penalties, although these withdrawals are subject to income tax.

All told, HSAs offer unique advantages that can make them a superior option for retirement savings, particularly after the benefits of 401k matching are maximized. Their flexibility in fund usage, coupled with tax advantages, makes HSAs a core component of a comprehensive retirement strategy. By strategically managing contributions and withdrawals, individuals can optimize both their financial and physical health in retirement.

What Happens If Your Employment Ends

Your life insurance coverage and any optional coverage you purchase for your spouse/domestic partner and/or children ends on the date your employment with Boeing ends, unless your employment ends due to disability. If you die within 31 days of your termination date, benefits are paid to your beneficiary for your basic life insurance, as well as any additional life insurance coverage you elected.

Note:

You may have the option to convert your life insurance to an individual policy or elect portability on any optional coverage.
If you stop paying supplementary contributions, your coverage will end.
If you are at least 65 and you pay for supplemental life insurance, you should receive information in the mail from the insurance company that explains your options.
Make sure to update your beneficiaries. See Boeing's SPD for more details.

Beneficiary Designations

As part of your retirement and estate planning, it’s important to name someone to receive the proceeds of your benefit programs in the event of your death. That’s how Boeing will know to whom to send your final compensation and benefits. This can include life insurance payouts and any pension or savings balances you may have.

Next Step:

When you retire, make sure that you update your beneficiaries, and update the Beneficiary Designation form for life events such as death, marriage, divorce, childbirth, adoptions, etc.

Schedule a Call

Claiming Social Security is one thing; understanding how your claim works is something else entirely. Understanding Social Security is a difficult but crucial step in assessing your retirement paycheck. For many Americans, Social Security benefits are core to their retirement income strategy. However, when and why you claim them depends on your overall withdrawal strategy.

To help you make an informed decision, let's explore three main steps you should follow to solidify your Social Security strategy at Boeing:

Step 1. Decide when to claim your Social Security benefits

Social Security benefits can be significant, but at the end of the day, they're just one part of your overall financial picture. When considering the timing of your claim, keep this general principle in mind: The later you begin receiving benefits, the larger those benefits will be.

The full monthly Social Security retirement benefit is based on applying at the Full Retirement Age (FRA), which is age 67 for those born 1960 or later. For every year you wait after you reach the FRA, your benefit amount increases 8%. It reaches a maximum at age 70. If we do the math, we can determine that, if you start claiming at age 70, your monthly benefit will be 124% the full benefit.

However, you can also apply before you reach FRA, as early as age 62. You will receive a reduced benefit if you do so, but this option could make sense for those who want to start claiming their benefit earlier for longevity reasons.

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Step 2. Understand the tax implications

For all but the lowest-income retirees, Social Security benefits are actually taxable. Only individuals with provisional income under $25,000, or $32,000 if married filing jointly, receive their benefits tax-free. Otherwise, up to 85% of your benefits will be treated as taxable income.

Furthermore, depending on where you live, your Social Security benefits may even be taxed at the state level. If you plan to move for retirement, the tax regime in the state you're moving to can be a relevant consideration.

Step 3. Start preparing today

Even if your retirement is right around the corner, you can make decisions today that will impact you for years, or decades, to come. For instance, delaying your Social Security claiming date even a year or two can snowball into a significant benefit. To bridge the gap between their retirement date and their claiming date, some people create a "slush fund" while they're working to take the place of the Social Security benefits they would receive from claiming at FRA. Whether these funds come from a 401k, IRA, or brokerage account, integrating a bit of extra padding in your planning can pay off in the long run.

Always remember, your Social Security benefit is just one part of your overall financial picture. And when you start to consider tax implications, withdrawal sequencing, and effective diversification (beyond just the asset class), the picture can start to get complicated. That's what we're here to help with. At The Retirement Group, we've been assisting Boeing employees to and through retirement for years. If you're interested in speaking with an experienced advisor who's been through the process before, reach out today.

Medicare Coverage for Retirees

Are you eligible for Medicare or will be soon? If you or your dependents are eligible after you leave Boeing, Medicare generally becomes the primary coverage for you or any of your dependents as soon as they are eligible for Medicare. This will affect your company-provided medical benefits.

It's your responsibility to enroll in Medicare Parts A and B when you first become eligible, and you must stay enrolled to have coverage for Medicare-eligible expenses. This applies to your Medicare-eligible dependents as well.

If you don’t enroll in Medicare Parts A and B, your provider can bill you for the amounts that are not paid by Medicare, which could make your out-of-pocket expenses significantly higher.

According to the Employee Benefit Research Institute (EBRI), Medicare will only cover about 60% of an individual’s medical expenses. This means a 65-year-old couple, with average prescription-drug expenses for their age, will need $259,000 in savings to have a 90% chance of covering their health care expenses. A single male will need $124,000 and a single female, thanks to her longer life expectancy, will need $140,000.

Numbers like these aren't meant to scare you; rather, they're here to inform you about the realities of health care in retirement. A sound retirement income plan, coupled with comprehensive, holistic integration with your overall financial plan, can help you prepare for health care costs after you retire. If you have concerns about your Boeing health care plan or want an experienced set of eyes to look over your options, don't hesitate to reach out.

The ideas of happily ever after and until death do us part won’t happen for 28% of couples over retirement age. Many of these couples saved together for decades, assuming they would retire together. After a divorce, they face the expenses of a pre-or post-retirement life, but with half their savings.

If you’re divorced or in the process of divorcing, your former spouse(s) may have an interest in a portion of your retirement benefits from Boeing. Before you can start your pension - and for each former spouse who may have an interest - you’ll need to provide Boeing with the following documentation:

A copy of the court-filed Judgment of Dissolution or Judgment of Divorce along with any Marital Settlement Agreement (MSA)
A copy of the court-filed Qualified Domestic Relations Order (QDRO)

For more information on strategies to consider if divorce is affecting your retirement benefits, please give us a call.

Social Security and Divorce

You can apply for a divorced spouse’s benefit if the following criteria are met:

You’re at least 62 years of age.
You were married for at least 10 years prior to the divorce.
You are currently unmarried.
Your ex-spouse is entitled to Social Security benefits.
Your own Social Security benefit amount is less than your spousal benefit amount, which is equal to one-half of what your ex’s full benefit amount would be if claimed at Full Retirement Age (FRA).

Unlike with a married couple, your ex-spouse doesn’t have to have filed for Social Security before you can apply for your divorced spouse’s benefit, but this only applies if you’ve been divorced for at least two years and your ex is at least 62 years of age. If the divorce was less than two years ago, your ex must already be receiving benefits before you can file as a divorced spouse.

In the process of divorcing?

If your divorce isn’t final before your retirement date from Boeing, you’re still considered married. You have two options:

Retire before your divorce is final and elect a joint pension of at least 50% with your spouse - or get your spouse’s signed, notarized consent to a different election or lump sum.
Delay your retirement until after your divorce is final and you can provide the required divorce documentation.*

If you have a joint pension...

Start the joint pension payments. The joint pension is not automatic. Your joint pensioner will need to complete and return the paperwork from Boeing's pension center to start receiving joint pension payments.
Be prepared financially to cover living expenses. Your spouse will need to be prepared with enough savings to bridge at least one month between the end of your pension payments from Boeing and the beginning of his or her own pension payments.

Financial benefits of working

Make up for decreased value of savings or investments. Low interest rates may be great for lump sum pension payouts, but they make it harder to generate portfolio income. Some people in your city continue to work to make up for poor performance of their savings and investments.

Maybe you took an offer from your company and left earlier than you wanted with less retirement savings than you needed. Instead of drawing down savings, you may decide to work a little longer to pay for extras you’ve always denied yourself in the past.

Meet financial requirements of day-to-day living in your state. Expenses can increase during your retirement years and working can be a logical and effective solution. You might choose to continue working to keep your insurance or other benefits - many employers offer free to low cost health insurance for part-time workers.

Emotional benefits of working

You might find yourself with very tempting job opportunities at a time when you thought you’d be withdrawing from the workforce in your city, your state.

Staying active and involved. Retaining employment after your previous job, even if it’s just part-time, can be a great way to use the skills you’ve worked so hard to build over the years and keep up with friends and colleagues.

Enjoying yourself at work. Just because the government has set a retirement age with its Social Security program doesn’t mean you have to schedule your own life that way. Many people, especially those around retirement age, genuinely enjoy their employment and continue working because their jobs enrich their lives.

Retirement Guide for Boeing Employees

In this comprehensive retirement guide for Boeing employees, we cover the most critical factors to take into account when deciding on the proper time to retire from Boeing.

From tax rates to health care, inflation, and details of the Boeing Pension Plan, this guide is designed to answer your most pressing retirement questions.

While we are not affiliated with Boeing, The Retirement Group has extensive experience working with Boeing employees as they move toward and into retirement.

Table of Contents

2026 Tax Changes & Inflation

Tax Code Changes 2026

Child Tax Credit Updates for 2026

Optimize your retirement contributions

Dealing with Inflation

Schedule An Appointment with a Retirement Group Advisor

Recent Layoff Announcements & Other Boeing News

Planning Your Retirement

Retirement planning is a verb; consistent action must be taken whether you’re 20 or 60.

The truth is that most Americans don’t know how much to save or the amount of income they’ll need to retire.

"A study by Russell Investments, a large money management firm, found that a good financial advisor can increase investor returns by an estimated 3.75%."

There's a 79% potential boost in wealth at age 65 over a 20-year period when choosing to invest in your company's retirement plan.

Why are 401ks and matching contributions so popular?

Your Boeing Pension Plan

Boeing’s Defined Benefit Final Average Pay Pension Plan

Boeing Stock Options and Restricted Stock Units (RSUs)

Restricted Stock Units (RSUs) at Boeing

Eligibility and Availability

Tax Considerations

Conclusion

Boeing's Deferred and Executive Compensation Plan (409A Plan)

Lump Sum vs. Annuity

Interest Rates and Life Expectancy

Your 401k Plan

Next Steps:

Strategies to leverage your 401k before retirement

Net Unrealized Appreciation (NUA)

IRA Withdrawal

Your Benefits

Social Security & Medicare

Step 1. Decide when to claim your Social Security benefits

Step 2. Understand the tax implications

Step 3. Start preparing today

Medicare Coverage for Retirees

Divorce

Unlike with a married couple, your ex-spouse doesn’t have to have filed for Social Security before you can apply for your divorced spouse’s benefit.

Survivor Checklist

Life After Your Career

Sources