Raytheon Company was a US military contractor based in Massachusetts that also manufactured machines and electronics for the military. Its most notable creation was the production of guided missiles of which the company later became one of the biggest producers. Now the Raytheon Company is no longer using that name because the company merged with United Technologies and formed Raytheon Technologies. Let’s get the answer to ‘Does Raytheon have a Retirement or Pension Plan?’.
Does Raytheon have a Retirement or Pension Plan?
There are many benefits of working for a defense contractor in the US. The retirement plan for most of these companies is well detailed and very generous. For Raytheon, the retirement plan they offer is a matchup of 3% of your savings for eligible employees. The 401(k) plan also has a variety of investment options that they offer to its employees. The company has contracted a separate company called Fidelity to provide retirement plans for their employees. The plans are categorized into groups of retired age, mixed category, or foreign domestic options.
Raytheon savings and investment plan
A retirement or pension plan is considered a savings and investment plan at Raytheon Company. Eligibility to be part of this plan is that you are employed permanently in the company. If you are eligible to participate in the plan, you can enroll in the plan immediately after you are officially employed. It is a savings plan that offers various options you can choose from.
- Pre-tax basis. The savings can be made before tax is deducted from the money earned. This reduces your taxable income and allows you to save up more.
- After-tax basis. This option allows you to save from the taxable income that remains after federal, state, and local income tax is deducted. The savings are deferred as long as your income remains in the account.
- 401(k) feature. With this option, you can make contributions to your savings after taxes have been deducted and your assets grow tax-free.
The IRS, which is the governing body for payment of taxes in the US, also has set regulations that indicate that the total contributions you make to your savings plan must not exceed 50% of your total earnings. This policy is observed by Raytheon Company as well.
Raytheon Company does what is commonly known as company matching contributions. This is where the company matches individual savings to promote its investment plan. The amount of money the company will contribute largely depends on the date of your employment but generally, it is rated at 3% of your savings.
401(k) participants
For those who choose this type of investment plan for their future, the company further provides extra services using a company called Edelman Financial Engines Inc which provides additional services to the investors on better ways to invest their money for retirement. Their services include;
- Professional management. This is a service they provide to the investors to help them manage their investment account when they are too busy to do it themselves or have little interest in knowing and understanding the financial intricacies of managing their accounts.
- Online advice. The financial company offers recommendations on contribution rates to increase your benefits, preferred risks that may be more beneficial to you monetarily, and advice on retirement age. This helps you to manage your account and investment portfolio.
Active employees
Those who are classified as active employees of Raytheon Company can access loans from the company; they can also withdraw money from their savings account, or even take out the vested money when they leave the company. This means that their accounts are portable.
Enrolling in the Raytheon savings and retirement plan
You can enroll any time for this plan all you need to do is;
- Create your account and set up your password
- Choose whether you want the pre-tax, after-tax, or 401(k) contribution plan
- Choose how you want your savings invested from the options listed by Edelman Financial Engines Inc.
- Finally, select the management plan that best suits you and your needs.
Eligibility for conversion
Saving using the Raytheon retirement savings plan can be converted immediately. There are no limits on the amount of money you would want to convert, especially if using the 401(k) plan. The conversion process is taxable and notes that any outstanding loans cannot be converted. The savings can only be converted after the following criteria have been met.
- If the investor is up to 59 years of age, the after-tax account can be converted, and the company will match up at 3% of the savings.
- If the investor is 60 years old and above, the pre-tax and after-tax accounts can be converted, and a company will match up at the same rate.
Conclusion
It is important to diversify your retirement savings to increase the chances of successful investment, and Raytheon Company provides such facilities. They allow you to spread your investment into different accounts and plan so that you can minimize risk and maximize benefits. The company recognizes that all individuals have different investment goals, and that is why they outsource for financial services to offer advice on investment and account management plans.
Frequently asked questions
- What benefits does Raytheon offer its employees?
They offer health and wellness plans, retirement savings, asset protection, work-life balance, relocation assistance, and many more.
- Can I withdraw from my Raytheon 401(k) plan?
Yes, you can. Read the conditions the company has stipulated for the withdrawal process.
- Why should I participate in the Raytheon pension plan?
The plan has many benefits and options to choose from that will increase your savings for the future.
