Benefits of the Boeing Retirement Plan
There are several benefits that Boeing employees have at their disposal.
The possibilities for employees are numerous, so they should know what they agree to. When choosing the best benefit option, employees should consider their current and future income needs, family situations, and other factors.
401(k) Plan
An employer-sponsored retirement savings plan known as a 401(k) allows employees to set aside a part of their income with the possibility of employer matching. It gives the saver a tax break on their contributions and enables the money to grow tax-deferred, which can provide income in retirement.
Many American companies offer a 401(k) plan as part of their employment package. These plans are based on Internal Revenue Code Section 401(k), which enables employees to defer their salary.
A 401(k) account is typically invested in selecting mutual funds, index funds, or exchange-traded funds (ETFs). Until it is withdrawn, money invested in a 401(k) is tax-deferred. Additionally tax-deferred, the earnings on the underlying investments allow for compound interest growth. Further, a 401(k) account can be transferred to an IRA for added tax advantages. IRA withdrawals are taxed once you receive the distribution, but there may be a penalty for withdrawing before age 59 1/2.
Sick Leave Account
The Boeing retirement plan’s sick leave account benefits permit workers to utilize paid sick time. This sick leave can be used in conjunction with the FMLA.
Under the FMLA, workers may take up to 12 weeks of accrued sick leave and an extra 12 weeks of unpaid leave to care for family members with severe medical conditions. The amount of sick leave available for general family care and bereavement or expanded family care does not increase from one year to the next.
A 401(k) account can also be transferred to an IRA for added tax advantages. Supervisors should approve the leave and provide an acknowledgment of the request.
Defined Benefit Plan
Many employees nearing retirement age face a financial decision that could significantly impact their retirement lifestyle. They can receive a pension that provides monthly income for life or a lump sum that can be invested and withdrawn as desired.
Employees of Boeing can also contribute pre-tax or post-tax money to a 401(k) plan, allowing them to save extra amounts for retirement. If the company matches contributions, that is an excellent incentive for high-income earners to save more for retirement.
A defined benefit plan allows employees to select a combination of investment funds, including lifecycle, index, and actively managed funds. Choosing the right mix of investments is essential to long-term success.
Participants can also choose whether they want their withdrawals of dividends.
Flexible Spending Account
Besides the 401(k) plan, you have flexible spending accounts (FSAs) options. You can set money away for qualified health and dependent care costs using an FSA on a pre-tax basis.
An FSA can save up to 30% of your healthcare costs, depending on your tax bracket. FSAs are available for various expenses, such as copayments, deductibles, and prescription medications.
A family making the median U.S. income ($68,703 per year) that elects the total FSA contribution for 2022 will save nearly $1,000 in federal taxes.
