The Complete Guide to Your Boeing 401(k)
The Boeing Company 401(k) Retirement Plan is Boeing’s primary retirement savings program. By using this benefit, you can save and grow your wealth until you’re ready to reap the rewards in your golden years.
In this guide, we’re going to take a detailed look at everything you need to know about your 401(k). Let’s get started!
Key Takeaways
The Boeing 401(k) lets eligible employees contribute a portion of their income to invest and grow over time.
Contributions can be made on a pre-tax, Roth, and after-tax basis.
Boeing matches eligible contributions dollar-for-dollar, up to 10% of the employee’s eligible pay, with immediate vesting for all matching funds.
Boeing’s 401(k) plan also has the necessary features for the mega backdoor Roth strategy.
Understanding Your Boeing 401(k) Plan
The Boeing 401(k), formerly known as the Boeing Voluntary Investment Plan (VIP), is a retirement savings plan designed to help Boeing employees prepare for their future. Using this program, you can contribute a portion of your income to invest and grow over time. The plan gives you significant control over your retirement savings, including:
How your money is invested
How your contributions are taxed
When and how withdrawals are made
When your funds are rolled into a new account
But to make the right choices, you’ll want to understand your options. Let’s take a closer look.
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How the Boeing 401(k) Works
When you enroll in the Boeing 401(k), you will choose a percentage of your pay to contribute to the plan. Boeing will deduct that amount from each paycheck and deposit it into a tax-advantaged savings account. From there, you can choose from a range of investment options in the plan to increase your wealth through compound growth. When you’re ready to retire, you can begin withdrawing from your savings to support your new lifestyle.
Matching Contributions
One of the primary benefits of the Boeing 401(k) is the automatic 401(k) match. When you invest in your 401(k), Boeing will match your contributions dollar-for-dollar up to 10% of your eligible pay. This means that if you invest up to 10% every year, Boeing will automatically double that amount. These matching funds are also immediately 100% vested. No matter how long you remain at Boeing, the matching contributions will be yours to keep.
(Note: These rules apply to eligible non-union employees. Matching rates and contribution limits may differ for union employees based on the collective bargaining agreement in place.)
Contribution Options
When contributing to the Boeing 401(k), you have several options for how your contributions are taxed.
Pre-tax Contributions
Pre-tax contributions are deducted from your paycheck before federal income taxes are applied, which lowers your taxable income for the year. Your investments will then grow tax-deferred until they are withdrawn, at which point your distributions will be taxed as ordinary income. Because you may be in a lower tax bracket after retiring, this could translate to major savings in the long run.
Roth Contributions
Roth contributions are made with after-tax dollars. While these contributions do not reduce your current taxable income, they will grow tax-free, and qualified withdrawals during retirement are also tax-free.
After-tax Contributions
After-tax contributions are similar to Roth contributions. However, unlike with Roth, after-tax earnings grow tax-deferred. These contributions do not reduce current taxable income and may be subject to taxes on the earnings upon withdrawal. The primary benefit of these contributions is that they can be converted to Roth using the mega backdoor Roth strategy. (More on that below.)
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Eligibility Rules
Most U.S.-based Boeing employees paid through Boeing payroll are eligible to participate in the 401(k), including nonunion employees and employees represented by participating unions. Some workers may be excluded from the plan, such as:
Independent contractors
Leased employees
Employees who are nonresident aliens without any earned income for work performed in the U.S.
Employees who are citizens or residents of the U.S. but were hired directly by a foreign branch to perform services outside the U.S. (This does not apply to expatriated U.S. employees on Boeing payroll.)
Otherwise, you are almost certainly eligible for the Boeing 401(k).
Enrolling in the Boeing 401(k) Plan
Eligible employees can enroll in the Boeing 401(k) after they are hired. If you do not make an election, Boeing will automatically enroll you after about 60 days at a 5% pre-tax contribution rate unless you opt out. If you have not been enrolled yet, you can sign up anytime after being hired. This is a quick and easy process!
Enroll Online
Employees can enroll in the Boeing 401(k) through the Fidelity NetBenefits website. To sign up, follow these steps:
Go to the Fidelity NetBenefits website and log in using your Fidelity credentials. (If you do not already have an account, you can create one.)
Once logged in, navigate to the retirement plans section.
Select the Boeing 401(k) plan from the list of available plans.
Follow the prompts to enroll, which will include selecting your contribution percentage and investment options.
Decide on your contribution type (pre-tax, after-tax, or Roth) and percentage.
Set up automatic payroll deductions to ensure regular contributions to your plan.
Enroll By Phone
If you prefer to enroll by telephone, you can do so easily. Simply call the Boeing Financial Benefits Service Center to speak with a representative. (This service is especially helpful for employees who might have questions or need guidance on how to optimize their retirement plan.)
PRO TIP: Boeing’s automatic enrollment program also includes an auto-escalation feature. If you leave the default election in place, your contribution rate will increase each year until it reaches 10% of base pay. You can change or opt out of these automatic increases.
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Contribution Limits
The IRS sets annual limits on how much employees can contribute to their 401(k) plans per year.
For 2026, the standard contribution limit is $24,500.
Employees age 50 and older can make catch-up contributions of up to $8,000, for a total of $32,500.
Employees age 60 through 63 get an enhanced “super catch-up contribution” of $11,250, for a total of $35,750.
If you want to contribute even more to your retirement funds, Boeing has other options. The two main strategies are the Boeing Supplemental Savings Plan (SSP) and the Boeing mega backdoor Roth strategy.
The Boeing Mega Backdoor Roth
The mega backdoor Roth is a strategy that lets you make after-tax contributions to your Boeing 401(k), then convert those contributions to Roth through an in-plan conversion or by rolling them into a Roth IRA. This will let you invest and save beyond the regular employee contribution limits.
Key Features:
After-tax contributions: Using the Mega Backdoor Roth strategy, you can contribute after-tax funds to your 401(k) beyond the standard limits. Those funds can then be converted to Roth.
Tax-free growth: Once the after-tax contributions are rolled into a Roth account, they grow tax-free. Qualified withdrawals will also be tax-free.
Automatic conversion: When you use the mega backdoor Roth, Boeing lets you set up automatic Roth conversions for recurring after-tax contributions. This helps minimize taxable investment earnings that could accumulate before conversion.
To learn more about this option, check out our complete guide to the Boeing mega backdoor Roth.
Boeing Supplemental Savings Plan (SSP)
The Boeing Supplemental Savings Plan (SSP) is a nonqualified deferred compensation plan. Like the mega backdoor Roth, this plan lets you save even more after reaching standard 401(k) limits.
Key Features:
Higher contribution limits: Using this program, high-earners can contribute a significant portion of their income to save for the future.
Tax treatment: Contributions to the SSP are made with pre-tax money, reducing your taxable income for the current year. When the funds are distributed later, they are taxed as ordinary income.
Nonqualified plan: Unlike a 401(k), the SSP is a nonqualified plan. This means that if Boeing were to declare bankruptcy, your savings could be at risk. While this is an unlikely problem, it’s worth knowing when considering the plan.
For more, see our guide on the Boeing Supplemental Savings Plan.
Investing in Your Boeing 401(k)
The Boeing 401(k) offers a range of investment options so you can customize your strategy to suit your personal goals and risk tolerance.
Target Date Funds
Target date funds, also known as lifecycle funds, are designed to automatically adjust their asset allocation as the target retirement date approaches. These funds start with a higher allocation to stocks for growth and gradually shift to more conservative investments, such as bonds, to reduce risk as the target date nears. Target date funds offer a hands-off approach to investing, making them ideal for employees who prefer a simplified retirement planning strategy
Index Funds
Index funds are designed to mirror the performance of a specific market index, such as the S&P 500. These funds offer several advantages:
Low fees: Because index funds are passively managed, they typically have lower expense ratios compared to actively managed funds.
Diversification: Investing in an index fund provides exposure to a broad range of securities within the index, spreading risk across many companies and sectors.
Simplicity: Index funds make it easy to invest in a broad market without having to research and choose individual stocks or fund managers.
Other Investment Funds
Beyond index funds, Boeing offers other investment options to help you build your portfolio. These include:
Equity investments: Invest primarily in U.S. or international stocks, with the goal of long-term growth.
Fixed-income investments: Invest in bonds and other fixed-income securities to provide income and help balance stock-market risk.
Stable value fund: Focuses on preserving principal while providing interest income.
Boeing Stock Fund
The Boeing Stock Fund allows employees to invest directly in Boeing shares. This option provides a way to participate in the company’s success but comes with higher risk due to the lack of diversification. Employees investing in the Boeing Stock Fund should be mindful of their overall asset allocation to avoid overexposure to a single stock.
Note: Over time, some investments may grow faster than others and cause your portfolio to drift away from your original allocation. To solve this, Boeing lets you automatically rebalance your 401(k) investments. Every so often, the plan will adjust your investments back to the percentages you selected.
The Importance of Diversifying Your Retirement Savings
Diversifying your portfolio is one of the quickest ways to improve your investment strategy. If all your eggs are in one basket, a market downturn could do outsized damage to your savings. By spreading out your investments, you can reduce this risk and mitigate the impact of market volatility on your portfolio. Diversification also allows you to take advantage of growth opportunities in various sectors while balancing the risk with more stable investments.
Selecting the right mix of investments depends on various factors, including your risk tolerance, time horizon, and retirement goals. Diversifying across different asset classes helps manage risk and improve potential returns. An experienced financial advisor can help you make the right choice for your unique situation.
Withdrawals and Distributions
Once you leave Boeing, you can begin taking money from your 401(k). If you are under age 59½, those withdrawals may be subject to a 10% early-withdrawal penalty in addition to regular income taxes. One exception to this is the rule of 55. Under this rule, if you leave the company during or after the year in which you turn 55, you can make penalty-free withdrawals right away. This rule makes early retirement more practical for many employees.
While you are still working at Boeing, withdrawals are limited. Certain in-service and hardship withdrawals may be available if you are facing an immediate need, but taxes and penalties can reduce the usefulness of this.
Loans
If necessary, the Boeing 401(k) lets participants borrow against their account balance. You can borrow up to $50,000 or 50% of your vested account balance, whichever is lower. Loans must be repaid with interest, typically through payroll deductions. However, the interest you pay goes back into your own 401(k) account rather than to a bank or outside lender.
If you leave Boeing with an outstanding loan, you will still need to repay the remaining balance according to the plan’s rules. If the loan is not repaid as required, the unpaid amount may be treated as a taxable distribution or loan offset, which could also trigger a 10% early-withdrawal penalty depending on your age.
Beneficiaries
If you pass away while there is still money in your Boeing 401(k), the remaining balance goes to your designated beneficiary. Your beneficiary will then have to decide what to do with the account based on the distribution rules that apply to them. Spouses usually have more options than nonspouse beneficiaries, while many nonspouse beneficiaries must withdraw the inherited balance within 10 years.
Review your beneficiary designation periodically to make sure the account still goes to the person you intend.
Required Minimum Distributions
You cannot leave pre-tax money in your Boeing 401(k) indefinitely. Once you reach age 73, the IRS requires you to start taking required minimum distributions (RMDs) from the account each year. RMDs are calculated using your account balance at the end of the previous year divided by an IRS life-expectancy factor based on your age.
Roth accounts, whether a Roth 401(k) or Roth IRA, are not subject to RMDs during the lifetime of the owner. This applies to any savings made through the mega backdoor Roth.
Leaving Boeing
When you leave Boeing, you will have several options for what to do with your 401(k) balance. You can…
1. Keep It at Boeing
If you’re satisfied with your options at Boeing, you can keep your 401(k) balance where it is. There is no requirement to withdraw the funds when you leave. You will no longer be able to make employee contributions after leaving Boeing, but your existing investments can remain in the account and continue to grow. This also preserves access to the rule of 55 for early withdrawals, which is lost if you move the money to an IRA.
2. Roll It into an IRA
Alternatively, you can roll your 401(k) balance into an IRA. This gives you a wider range of investment options and more control over how the account is managed. An IRA can also make it easier to consolidate retirement accounts and manage all your savings in one place. How the rollover is taxed depends on where the money goes:
Pre-tax 401(k) to a traditional IRA: In this case, you will not owe taxes as long as you make a direct rollover without withdrawing the funds first. The money remains tax-deferred until you withdraw it later.
Roth 401(k) to a Roth IRA: You will also not owe taxes on this rollover, and the money can continue receiving Roth tax treatment.
Pre-tax 401(k) to a Roth IRA: This is known as a Roth conversion, and in this case, you will owe income tax on the pre-tax amount you convert.
3. Roll It Into a New Employer’s Plan
If you plan to keep working and your new employer accepts 401(k) rollovers, you can move your Boeing 401(k) into their account. Before making the move, compare the investment choices, fees, and withdrawal rules in the new plan with Boeing to make sure it’s worth the switch.
4. Withdraw the Money
When leaving Boeing, you can take your full balance as a cash distribution. However, this is virtually never the right choice. Any and all pre-tax funds and earnings would be taxed in one year, and you would lose out on the future growth of your investments. In almost all cases, it is better to leave your savings in place or move them directly to a new account.
If you aren’t sure which option is right for you, a fiduciary financial advisor can review your finances and help you make the right choice.
Retiring from Boeing
Once you’re ready to retire, you can finally take advantage of all that money you’ve saved and invested in the Boeing 401(k). But preparing for retirement means more than just picking a date and leaving work. Here are some steps to keep in mind when planning your retirement timeline.
1. Estimate Your Retirement Income
First, add up the income you expect to receive during retirement. This may include:
Boeing 401(k) distributions
Legacy pension benefits
Social Security
IRA distributions
This will give you an idea of how much you’ll have to work with after retiring.
2. Build a Retirement Budget
Your expenses will change after you stop working. Estimate your costs for housing, food, travel, healthcare, and other priorities so you have a realistic idea of how much income you will need. Compare that amount with your projected income. Will you have enough to support yourself through retirement? This will determine whether you are retirement-ready more than any other factor.
3. Review Your Investment Mix
A portfolio that made sense earlier in your career may not be ideal once you’re in the home stretch. Review your investment strategy to make sure the balance of risk and growth still fits your timeline and goals.
4. Have a Plan for Healthcare
Healthcare is one of the most important expenses to weigh in retirement. Before leaving Boeing, make sure you know how you will pay for any healthcare needs that may arise. If you retire before becoming eligible for Medicare at age 65, you will need coverage to bridge the gap. This can be done through COBRA, enrolling in a spouse’s plan, or purchasing private insurance through the ACA Marketplace at HealthCare.gov.
5. Review Your Taxes
Retirement can change where your taxable income comes from and how much tax you owe each year. Review the mix of pre-tax, Roth, and taxable savings you have before retiring so you understand how each source of income will affect your taxes. A fiduciary financial advisor can help you optimize your tax strategy so you can keep as much of your wealth as possible.
6. Keep Some Cash Available
Retirement expenses do not arrive on a perfectly predictable schedule. Before transitioning into retirement, establish an emergency fund to make sure your bases are covered. Keeping enough cash available for near-term expenses can help you avoid selling investments during a market downturn just to cover everyday costs.
How a Fiduciary Financial Advisor Can Help
Retirement planning can be complex, and making informed decisions about your Boeing 401(k) and other retirement savings requires careful consideration. A financial advisor can help you navigate these decisions effectively. Your fiduciary financial advisor can help you…
1. Put Everything Together
A financial advisor can look beyond your Boeing 401(k) and account for your pension, Social Security, IRAs, taxable investments, insurance, estate plan, and other assets. A coordinated strategy will always serve you better than a collection of separate decisions.
2. Compare Your Options
Many retirement decisions come with tradeoffs. An advisor can help you compare choices such as Roth versus pre-tax contributions, different investment strategies, pension options, or whether a rollover makes sense based on your full financial picture.
3. Catch Problems Before They Become Expensive
Even small mistakes with your taxes, investments, or withdrawals can have lasting consequences. An advisor can review your plan before you act and help you avoid decisions that create unnecessary taxes, penalties, or lost benefits.
4. Turn the Plan into Action
Knowing what you should do is only part of the job. Your advisor can help implement the strategy, coordinate changes across your accounts, and keep the plan updated as your finances, goals, and retirement date change.
Get Started with TrueWealth Financial Partners Today!
Planning for retirement and managing your Boeing 401(k) can be complex, but you don't have to navigate it alone. At TrueWealth Financial Partners, we provide comprehensive financial planning services tailored to your needs. As a fee-only fiduciary advisor, TrueWealth ensures that your best interests are always our top priority.
Here’s how we can help:
Customized financial planning: TrueWealth covers all aspects of financial planning, including investment, tax, retirement, estate, financial positioning, and protection planning. This holistic approach ensures that every facet of your financial life is optimized for your retirement goals.
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Ongoing support: At TrueWealth, we are not one-time advisors. Once we have a plan in place, we will help implement the strategy and give you continuing support for years to come.
We’d love to help you start your journey to a comfortable retirement! Just schedule a brief introductory call, and we’ll be happy to answer all your questions. Then, we can get started on creating a personalized retirement strategy tailored to your unique needs.