Your investment advisor can help you understand NUA and the tax implications of withdrawing from your Boeing company investments.

You can refund your Pretax contributions and investment earnings from your VIP account (up to IRS limits). It is an option available when you terminate employment.

Defined Benefit Plan

A boeing retirement plans with a defined benefit guarantees a particular gift at retirement. It can be based on a flat percentage of salary (flat benefit plan) or a formula such as percent of salary times years of service (unit benefit plan).

Once a plan is adopted, a TPA can assist with implementing the defined benefit plan by drafting legal documents and filings. They can also help establish an investment account and share necessary details with employees.

There are several benefits to a defined benefit plan, including tax savings and a substantial contribution towards retirement for business owners. However, the costs can be significant. A business owner should carefully consult with their TPA to understand the costs before adopting a defined benefit plan. A defined benefit plan will cost around $1,500 to $2,500, plus annual administration and filing fees.

Defined Contribution Plan

Employees contribute pretax dollars into their retirement account, and the employer may match those contributions to a certain percentage. Once enrolled, employees choose the investments that best meet their retirement objectives from various options. The total of the employee’s contributions, plus or minus any investment profits or losses, determines the account value at retirement.

These plans are less expensive for employers than defined-benefit pensions and are more common than defined-benefit plans. However, they can be risky for employees as their future income is not guaranteed.

For companies with 100 or fewer employees, Boeing offers Savings Incentive Match Plans for Employees (SIMPLE) and Simplified Employer Pension (SEP) IRAs. Both are tax-deferred, but withdrawals will be subject to income tax and required minimum distributions at age 73. Employees are responsible for investing their contributions and can work with a Boeing financial advisor if they need help.

Defined Contribution Matching Plan

Unlike defined benefit plans, retirement benefits are not guaranteed in defined contribution (DC) retirement plans. Instead, DC intends to offer a unique account for every member, with benefits determined by donations to the statement, investment performance, forfeitures, and employer match amounts.

Employer matching in DC plans is joint and can significantly boost your savings power. Typically, employers will match your salary deferral dollar-for-dollar up to a specified percentage of your paycheck, such as 4%.

A defined contribution plan may include a 401(k), 403(b), most 457(b) plans, TSP, profit-sharing or money purchase plans, SIMPLE IRAs, and Simplified Employee Pension (SEP) plans. Employees may make annual contributions to any or all of these plans in 2023 up to $22,500 for those under 50 and $7,500 for those over 50.

Defined Benefit Matching Plan

A defined benefit matching plan is designed to provide a generous match on employee salary deferrals, thereby enhancing the amount of money employees can contribute to their retirement accounts. Sole proprietorships, family-owned businesses, and smaller companies commonly use this plan.

The first step is gathering information about the business owner’s retirement objectives. Once the plan objectives are understood, a retirement vehicle is selected. It could be a defined benefit plan or another type of retirement option.

The following steps involve determining the plan’s cost using an actuarial technique called the projected unit credit method. This method requires entities to make a reliable estimate of the ultimate cost of benefits earned by employees and includes both current service costs and past service costs. To calculate this cost, entities use many actuarial assumptions, such as mortality and discount rates.