My job as a recruiter is all about helping people achieve their goals. That's probably why my clients often tell me about their goals which are unrelated to recruiting. Yesterday, I had a Boeing client asking me how to best maximize her 401(k). I wasn't sure at the time, but I did some research and thought I'd share what I found with the rest of my Boeing readers, and of course, this information might be of interest to my Fortune 500 readers as well, given the universal relevance of retirement planning.
Boeing offers a Voluntary Investment Plan (VIP) for its employees. This essentially functions as your 401(k). Luckily for Boeing employees they also offer a company match policy. Boeing will match 75 cents for every dollar you voluntarily put into the plan (up to 8% of your base pay). This means if you want to maximize your VIP you must put in at least 8% of your base pay (resulting in a 14% contribution!).
There is also a neat trick called a backdoor Roth. The Boeing VIP plan allows employees to make after tax contributions. These can be rolled into a Roth IRA. A backdoor Roth allows you to get money into a Roth IRA without giving up your pre-tax contributions. By utilizing this you can fund the entire $18,500 pre-tax limit and then put additional money into the after-tax account, which can be rolled into a Roth IRA at a later date.
Boeing also offers a program called VIP+. This is a program where they contribute a certain percentage of your pay into the VIP plan regardless of your contributions. This percentage is between 3-5 percent, depending on your age. If you are less than 40 years old you'll receive 3%. If you are between 41-49 you'll receive 4%. And if you are 50 or older you'll receive 5%.
Want to learn about the different stages of retirement? Visit: https://techstaffer.blog/2019/11/14/boeing-stages-of-retirement/
If you’d like to read about survivor benefits, visit: https://techstaffer.blog/2019/11/28/survivor-checklist-how-your-spouse-can-receive-boeing-benefits-after-your-death/
Wondering if you should work in retirement? Visit: https://techstaffer.blog/2019/12/05/life-after-boeing-should-i-work-in-retirement/
Sources:
The Retirement Group or www.theretirementgroup.com
“Retirement Plans-Benefits & Savings.” U.S. Department of Labor, 2019, www.dol.gov/general/topic/retirement.
“Generating Income That Will Last throughout Retirement.” Fidelity, 22 Jan. 2019, www.fidelity.com/viewpoints/retirement/income-that-can-last-lifetime.
BA Summary Plan Description, 2017