Keith's Note: "Boeing employees and retirees, the Mega Backdoor Roth is a powerful strategy within the Boeing 401(k) that can help you grow tax-free retirement savings, but it comes with rules, timelines, and contribution limits you need to understand. This guide will help Boeing employees evaluate whether this strategy fits your Real Wealth goals and long-term retirement plan." - Keith Demetriades, CFP®, CKA® | Financial Advisor Specializing in Boeing Retirees.
Rolling over funds from tax-deferred accounts into tax-advantaged Roth accounts can reduce your tax liability in a given year while also building your Real Wealth for retirement. You’ll pay taxes on the money you roll over, but you won’t pay taxes on your Roth’s earnings or future withdrawals.
Boeing’s Mega Backdoor Roth leverages specific features of The Boeing Company 401(k) Retirement Plan (VIP) that allow qualified employees to make extra 401(k) contributions that can be converted into a Roth account.
Are You Eligible For a Boeing Mega Backdoor Roth?
The Mega Backdoor Roth is not a separate plan, but a strategy for using Aftertax contributions to the The Boeing Company 401(k) Plan (VIP).
Generally, any employee who is eligible for the The Boeing Company 401(k) Plan (VIP) is eligible to open a Mega Backdoor Roth account.
Associated Contribution Types and Limits
Contributions to the Mega Backdoor Roth are Aftertax.
In 2025 the maximum allowable contributions to the 401(k) and Mega Backdoor Roth are:
If you are younger than 50:
- Pretax to 401(k): $23,500
- Aftertax to Mega Backdoor Roth: $46,500
- Total: $70,000
- Pretax to 401(k): $23,500
- Catch-Up Contribution to 401(k): $7,500
- Aftertax to Mega Backdoor Roth: $46,500
- Total: $77,500
Can I Withdrawal From My Mega Backdoor Roth?
You can make tax-free withdrawals from your Mega Backdoor Roth account if:
- Your Mega Backdoor Roth account has been open for at least five years.
- You are at least 59 ½ years old.
Real Wealth Questions
If you’re within 5-10 years of retirement from Boeing, these questions matter:
Is making Aftertax contributions to your Boeing 401(k) and rolling them over into the Mega Backdoor Roth the most advantageous use of those funds?
Should you prioritize maximizing contributions into your Mega Backdoor Roth?
Will you be able to consistently make Aftertax contributions to the Mega Backdoor Roth throughout the year without affecting your other Real Wealth goals?
What happens if you need to access money in your Mega Backdoor Roth before age 59 ½ or before the account has been open for five years to cover an emergency, such as a job loss or a health problem?
How will withdrawals from your Mega Backdoor Roth affect your required minimum distributions in retirement?
What To Do Next
Consider how your ESPP contributions and holdings fit into your overall retirement strategy and portfolio diversification. Think about the timing of potential share sales relative to long-term capital gains requirements, your need for liquidity, and how the ESPP interacts with other tax and Real Wealth planning strategies.
For personalized guidance on optimizing your ESPP, coordinating it with your Boeing 401(k), pension, and other investments, or evaluating tax implications as you approach retirement, reach out to Keith Demetriades, CFP®, CKA®, a financial advisor specializing in Boeing retirees.
