Boeing 401(k) Loans and Repayments
You can find a summary of loan provisions and procedures in the Loan Guide available on NetBenefits.com or contact the Boeing Financial Benefits Service Center at 866-422-3539.
Loan Eligibility: Loans are generally available to active employees and employees on a company-approved leave of absence.
Repayment Options
- Employees: Repayments typically are made through payroll deductions.
- After Termination of Employment: If you terminate employment with an outstanding Boeing 401(k) loan, you can set up recurring monthly loan payments via direct debit from a bank account until your loan is paid off.
Boeing 401(k) Withdrawal Options
Withdrawals While Employed
- Tax Rules for Withdrawals While Employed
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- Federal and State Income Taxes: Applicable federal and state income taxes will apply to the taxable portion of your withdrawal.
- Federal Withholding: Generally, 20% of the taxable portion of any non-rollover withdrawal will be withheld for federal income tax purposes.
- Early Withdrawal Penalty: A 10% early withdrawal penalty tax generally applies to the taxable portion of most withdrawals taken before age 59½.
- Withdrawals of Aftertax Contributions
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- Amount: You may withdraw all or part of your Aftertax Contributions and their associated earnings at any time.
- Frequency: Starting August 1, 2025, you can take an Aftertax withdrawal once every 6 months.
- Taxation: Only the investment earnings on Aftertax Contributions are subject to federal and state income taxes upon withdrawal.
- Withdrawals of Rollover Contributions
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- Amount: You may withdraw all or part of your Rollover Contributions and any earnings accrued on those contributions.
- Frequency: These withdrawals can be made at any time.
- Taxation:
- If you choose not to directly roll over the withdrawal to an IRA or another retirement plan, 20% of the taxable portion will be withheld for federal income taxes.
- Applicable state taxes may also be withheld.
- An additional 10% early withdrawal tax may apply to the taxable portion of your withdrawal if you are under age 59½.
- If an eligible rollover distribution is directly rolled over to a traditional IRA or another eligible retirement plan, no inclusion in gross income or excise tax penalty for early distribution will occur.
- If you roll over an otherwise taxable distribution to a Roth IRA, the distribution will be included in your gross income, but it will not be subject to the 10% excise tax penalty for early distribution.
- Company Matching Contributions Withdrawals
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- Amount: You may withdraw all or part of your Company Matching Contributions and any earnings accrued on them.
- Frequency:
- You must have completed five years of service with the Boeing Controlled Group to be eligible for this withdrawal.
- Starting August 1, 2025, you can take a Matching Contributions Withdrawal once every 6 months.
- If you take a match withdrawal before age 59½, it will trigger a 6-month match suspension. During this suspension, you will not receive any Company Matching Contributions, Student Loan Non-Elective Contributions, or Supplemental Matching Contributions. Your compensation will be pro-rated to exclude earnings during this period for contribution calculations. You will also not be eligible for a True-Up Company Matching Contribution for any Plan Year in which your Company Matching Contributions are suspended due to a withdrawal.
- Taxation:
- If not directly rolled over to an IRA or another qualified retirement plan, 20% of the taxable portion will be withheld for federal income taxes.
- Additional state taxes may apply.
- A 10% early withdrawal tax may apply to the taxable portion if you are under age 59½.
- Hardship Withdrawals
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- Amount: Limited to the amount necessary to satisfy the eligible financial hardship, plus an additional amount to cover federal and state tax withholding. Examples of eligible financial emergencies include medical care expenses, costs related to purchasing a primary residence (excluding ongoing mortgage payments), tuition/educational fees for the next 12 months of postsecondary education, expenses from a federally declared disaster, payments to prevent eviction or mortgage foreclosure, funeral expenses, and principal residence repairs.
- Frequency:
- You must first exhaust all other available withdrawals under the plan before you can take a hardship withdrawal.
- For certain union-represented employees, taking a hardship withdrawal before age 59½ may result in a 6-month match suspension.
- If you previously had a Company Matching Contribution Withdrawal that triggered a suspension, and then take a Hardship Withdrawal, your Company Matching Contributions will automatically resume even if the prior suspension period has not ended.
- Your contributions to your 401(k) will continue unless you specifically request that payroll deductions stop.
- Taxation:
- In most cases, you will owe regular income taxes on the taxable portion of the money withdrawn.
- An additional 10% early withdrawal tax may apply if you are under age 59½.
- Federal and state withholding may apply.
- The amount needed for the emergency can include the taxes anticipated on the distribution.
- Domestic Abuse Withdrawal
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- Amount: The lesser of $10,000 or 50% of your account balance.
- Frequency: This withdrawal can be taken within 1 year of the abuse. It can also be repaid within 1 year of the abuse. This option does not apply to employees represented by SPEEA or IAM 751/W24.
- Taxation:
- No early withdrawal penalty applies.
- Pending additional IRS guidance, Fidelity will initially report this withdrawal as subject to a tax penalty. Participants will then need to submit IRS Form 5329 with their individual tax filing to demonstrate that the distribution is not subject to a penalty.
- Federal and state withholding may apply.
- Withdrawals of FSP Sick Leave Contributions
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- Amount: If you have an FSP Sick Leave account and are eligible to withdraw sick leave benefits due to your illness or injury, an FSP Sick Leave Withdrawal Eligibility letter will be sent to you to advise you of the precise amount you are eligible to withdraw and will also provide you with various payment options.
- Frequency: An FSP Sick Leave Withdrawal Eligibility letter will be mailed to you for each applicable pay week confirming your eligibility to withdraw these benefits due to illness or injury.
- Taxation:
- In most cases, you will owe regular income taxes on the taxable portion of the money withdrawn.
- A 10% early withdrawal tax may apply if you are not 59 1/2.
- You may owe state income taxes.
- Withdrawals After the Birth or Adoption of a Child
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- Amount: You may withdraw up to $5,000 per qualified dependent child.
- Frequency: This withdrawal can be taken within 1 year of the birth or adoption. You have the option to recontribute any portion of the withdrawal back into your 401(k) as a rollover contribution within three years of receiving the withdrawal. However, the money withdrawn for this purpose is not eligible for rollover into another qualified plan or IRA.
- Taxation:
- No 10% early withdrawal tax.
- In most cases, you will owe regular income taxes on the taxable portion of the money withdrawn that is not recontributed.
- You may owe state income taxes.
- Pending additional IRS guidance, Fidelity will report this withdrawal as subject to a tax penalty. Participants will then submit IRS Form 5329 with their individual tax filing to show it is not subject to the penalty.
- Withdrawals Upon Disability
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- Amount: You may be permitted to withdraw all or part of your 401(k) account.
- Frequency: This option is available if you are a nonunion participant or a union participant who is eligible via an applicable collective bargaining agreement and are determined to be totally disabled by the Social Security Administration (SSA). Additionally, if your account includes funds transferred from the eXMeritus Software federal Systems, Inc. 401(k) Plan or the Global Aeronautica LLC 401(k) Plan, you may withdraw those portions if you qualify for long-term disability benefits under a Boeing-sponsored disability plan, even if you haven't received an SSA disability determination.
- Taxation:
- In most cases, you will owe regular income taxes on the taxable portion of the money withdrawn.
- You may also owe state income taxes.
- The 10% early withdrawal tax does not apply after you have been determined to be disabled.
- Qualified Reservist Distributions
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- Amount: You may withdraw all or a portion of your Pretax Contributions or Roth Contributions.
- Frequency: This withdrawal is available if you are a reservist in the U.S. Armed Forces who is ordered or called to active duty for a period exceeding 179 days (or indefinitely). The distribution must be made during the period that begins on the date of the order or call and ends at the close of the active duty period. This option is available to nonunion participants or a union participant who is eligible via an applicable collective bargaining agreement.
- Taxation:
- In most cases, you will owe regular income taxes on the taxable portion of the money withdrawn.
- You may also owe state income taxes.
- The 10% early withdrawal tax does not apply.
- Active Military Leave Distributions
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- Amount: You may withdraw all or part of your Pretax Contributions or Roth Contributions.
- Frequency: This option is available if you are on leave for at least 30 days while performing active duty in the uniformed services, as defined by law. If you receive such a withdrawal, you will not be able to make any Pretax Contributions or Roth Contributions for 6 months following your withdrawal. This applies to nonunion participants and a union participant who is eligible via an applicable collective bargaining agreement.
- Taxation:
- In most cases, you will owe regular income taxes on the taxable portion of the money withdrawn.
- You may also owe state income taxes.
- An additional 10% early withdrawal tax may apply if you are under age 59½.
- Withdrawals After Age 59½
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- Amount: No limit on the amount you can withdraw.
- Taxation: Not subject to the 10% early withdrawal tax, but considered taxable income.
Withdrawals After Terminating Employment
- Lump Sum Distributions
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- For Account Balances of $1,000 or Less: Your account will be automatically paid out as a lump sum approximately 90 days after you are notified of your distribution options, unless you request a distribution or rollover beforehand.
- Taxation:
- 20% federal income tax will be withheld, and state taxes may also apply.
- If you are under age 59½, a 10% early withdrawal penalty may apply to the taxable portion.
- If directly rolled over to an IRA or another eligible retirement plan, no income tax will be withheld, and taxes/penalties are deferred until withdrawn from the new account.
- For Account Balances Greater Than $1,000: You may receive the entire vested account balance.
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- Taxation:
- Pretax contributions and all earnings are subject to federal and, if applicable, state income taxes.
- 20% federal income tax will be withheld, and state taxes may also apply.
- If you are under age 59½, a 10% early withdrawal penalty may apply to the taxable portion.
- If your lump sum distribution includes an in-kind distribution of Boeing Stock, special federal tax treatment may apply.
Partial Distributions
- Withdrawals of Rollover Contributions
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- Amount: You may withdraw all or part of your Rollover Contributions and any earnings on them.
- Frequency: These withdrawals can be made at any time as a partial distribution after termination.
- Taxation:
- If you choose not to directly roll over the withdrawal to an Individual Retirement Account (IRA) or another qualified retirement plan:
- 20% of the taxable portion will be withheld for federal income taxes.
- Applicable state taxes may also be withheld.
- An additional 10% early withdrawal tax may apply to the taxable portion if you are under age 59½.
- If you choose a direct rollover to a traditional IRA or another eligible retirement plan (like another 401(k)):
- No immediate inclusion in gross income or excise tax penalty for early distribution will occur, and no 20% federal withholding will apply.
- If you choose a direct rollover of the taxable portion to a Roth IRA:
- The taxable portion will be included in your gross income, but it will not be subject to the 10% early withdrawal tax penalty or the 20% mandatory withholding at the time of the rollover.
- Company Matching Contributions Withdrawals
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- Amount: You may withdraw all or part of your Company Matching Contributions and any earnings accrued on them.
- Frequency: These withdrawals can be made at any time as a partial distribution after termination, provided you met the 5-year service requirement before or upon termination.
- If you take this withdrawal before age 59½, it would typically trigger a 6-month suspension of future Company Matching Contributions, Student Loan Non-Elective Contributions, and Supplemental Matching Contributions. While you are no longer employed and contributing, this note refers to the conditions that would apply if you were still an active participant.
- Taxation: If not directly rolled over to an IRA or another qualified retirement plan:
- 20% of the taxable portion will be withheld for federal income taxes.
- Additional state taxes may apply.
- A 10% early withdrawal tax may apply to the taxable portion if you are under age 59½.
- Withdrawals of FSP Sick Leave Contributions
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- Amount: The full remaining balance of your FSP Sick Leave Contribution account.
- Frequency: A one-time payout of any unused balance upon termination.
- Taxation:
- In most cases, you will owe regular income taxes on the taxable portion of the money withdrawn.
- A 10% early withdrawal tax may apply if you are under age 59½.
- You may also owe state income taxes.
- Withdrawals Upon Disability
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- Amount: You may be permitted to withdraw all or part of your 401(k) account. The amount of your monthly benefit is an unreduced benefit, but it will be adjusted if paid in certain annuity forms or a Lump Sum.
- Frequency: This option is available if you are a nonunion participant or a union participant who is eligible via an applicable collective bargaining agreement and are determined to be totally disabled by the Social Security Administration (SSA). Payments are made only after you have terminated employment from the Boeing Controlled Group and your application is timely. Additionally, if your account includes funds transferred from the eXMeritus Software federal Systems, Inc. 401(k) Plan or the Global Aeronautica LLC 401(k) Plan, you may withdraw those portions if you qualify for long-term disability benefits under a Company-sponsored disability plan, even if you haven't received an SSA disability determination.
- Taxation:
- In most cases, you will owe regular income taxes on the taxable portion of the money withdrawn.
- You may also owe state income taxes.
- The 10% early withdrawal tax does not apply to distributions made after you have been determined to be disabled.
Required Minimum Distributions (RMD)
If you are still working for Boeing past age 73, you can defer RMDs from your Boeing 401(k) until you terminate employment.
Once you do stop working for Boeing, the date you have to start taking RMDs depends on your birth year:
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- If you were born before July 1, 1949: RMDs begin no later than April 1 after the year you reach age 70½.
- If you were born on July 1, 1949, through December 31, 1950: RMDs begin no later than April 1 after the year you reach age 72.
- If you were born on January 1, 1951, through December 31, 1959: RMDs begin no later than April 1 after the year you reach age 73.
- If you were born in 1960 or later: RMDs begin no later than April 1 after the year you reach age 75.
For more information on how RMDs fit into your Real Wealth Plan … LINK TO RMD PAGE.
Real Wealth Questions
Do you have any outstanding 401(k) loans, and how should you handle repayment post-retirement?
Do you have better options than hardship withdrawals or in-service distributions to meet financial needs and goals?
How do early withdrawal penalties and taxes affect short-term needs versus long-term goals?
Questions? Visit the Boeing Benefits Glossary.