Boeing Voluntary Investment Plan (VIP)
and BAO Voluntary Savings Plan (BAO VSP)
Withdrawal Guide
The withdrawal options available through the Boeing Voluntary Investment Plan (VIP) and
the BAO Voluntary Savings Plan (BAO VSP) give you flexibility when you need to access
portions of your account balances. This guide provides you an overview of the withdrawal
options and explains how to request a withdrawal.
The VIP and BAO VSP are designed primarily to make it easier for you to save money for
retirement. But, if you find that you need money from your plan account before retirement,
you have several withdrawal options. Keep in mind that no matter which withdrawal option
you choose, withdrawals will reduce your savings growth. Please read this guide carefully
before requesting a withdrawal.
General facts about withdrawals
• Aftertax, age 591⁄2, employer match and rollover withdrawals can be requested and
processed through the Service Center or online website.
• A written application must be requested through the Service Center or downloaded from
the online website for hardship withdrawals of pretax monies.
• Withdrawals generally will be taken from your account on a pro rata basis (which means
proportionately across all funds). Account values will be determined using the closing
prices on the day the withdrawal is requested if the request is made before 4 p.m. Eastern
time. Otherwise, the next business day’s closing price will be used.
• Twenty percent of the taxable portion of any withdrawal will be withheld for Federal
Income tax purposes and State tax may also apply unless you elect to directly roll over the
withdrawal to an Individual Retirement Account (IRA) or another qualified plan.
• You are responsible for all taxes due. If the 20 percent withholding does not cover your
tax liability, you may have to pay additional taxes and penalties.
• Withdrawing money before age 591⁄2 generally is considered an early withdrawal. You
may have to pay a 10 percent penalty tax on the taxable portion of an early withdrawal.
• Employer matching contributions will stop for six months following a hardship
withdrawal or withdrawal of employer matching contributions.
• If any portion of your withdrawal includes Boeing stock, you may receive the withdrawal
in cash or “in-kind,” which means you receive the actual shares of Boeing stock.
• If you are a former participant in the Employee Savings Plan of MDC Hourly East Plan or
Hourly West Plan with assets that transferred to the Employee Investment Plan of MDC
Hourly East Plan or Hourly West Plan prior to 1990, withdrawal requests of these monies
are subject to spousal consent rules (regardless of current marital status). In order to
process a withdrawal, you must complete and return a form to CitiStreet.
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Payment Options
• Beginning June 13, 2005, you will have the ability to enter direct deposit information to
the banking institution of your choice for future withdrawal requests. Direct deposit
information may be entered online or with a CitiStreet Customer Service
Representative.
• Once direct deposit information has been established you may select direct deposit as a
payment method for your withdrawal. Direct deposit is not available for the rollover or
in-kind portion of any withdrawal.
• PLEASE PLAN IN ADVANCE – Once you’ve initiated or changed your direct deposit
information online or with a CitiStreet Customer Service Representative, there is a 7
calendar day waiting period before the direct deposit option will be available. During
this waiting period, you will still have the option to receive a check by mail.
How to access your account and request withdrawals
Telephone
Call Boeing TotalAccess at 1-866-473-2016 and select Savings from the menu. If you are
calling from a rotary dial phone, stay on the line and a customer service representative will
assist you. (TDD users call: 1-800-755-6363.) You must have your BEMS ID number (or
Social Security number) and Boeing TotalAccess password when you call. Select Savings
from the menu.
Once connected to your Savings Plan account:
Follow the prompts to the withdrawal options to hear the amount you have available for
each type of withdrawal that you are eligible for, request a withdrawal or request a hardship
withdrawal application or spousal consent withdrawal form.
Press the asterisk (*) key twice to speak with a Customer Service Representative during
business hours to enter direct deposit information.
Online
Go to http://my.boeing.com, select TotalAccess and the My Savings & Pension tab. If you
are not at a Boeing location, log on to your account at https://my-ext.boeing.com. You must
have your BEMS ID number (or Social Security number) and Boeing TotalAccess password
when accessing your account outside of Boeing locations.
Once logged onto your Savings Plan account:
Select withdrawals from the left navigation bar to view the amount you have available for
each type of withdrawal you are eligible for. From here you may request a 59 ½, employer
matching, aftertax or rollover withdrawal.
Select Personal Information, Banking Information to set up direct deposit.
Select Forms to download hardship withdrawal applications or spousal consent withdrawal
forms.
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Withdrawal Types
Age 59 1⁄2 withdrawals
If you are an active participant, and you have reached age 59 1⁄2, you will be allowed to
withdraw your entire pretax, aftertax, employer matching, rollover aftertax and rollover
pretax contributions and earnings. Twenty percent of the taxable portion of any withdrawal
will be withheld for federal income tax purposes and applicable state taxes unless you elect
to directly roll over the withdrawal to an Individual Retirement Account (IRA) or another
qualified plan.
Employer matching contributions will not be suspended following an age 591⁄2 withdrawal.
Employer match withdrawals
If you are an active participant with at least five years of service, you may withdraw any
portion of your employer matching contributions and earnings. If you take an employer
match withdrawal, future employer matching contributions will be suspended for
six months.
Twenty percent of the withdrawal will be withheld for federal income tax purposes and
applicable state taxes unless you elect to directly roll over the withdrawal to an Individual
Retirement Account (IRA) or another qualified plan. Also, you generally will owe a 10
percent federal tax penalty on the taxable amount if you are under age 59 1⁄2 when you take
your withdrawal. You also may owe a state tax depending on where you live.
Aftertax withdrawals
Generally, you may withdraw at anytime all or part of the aftertax contributions you have
made to the VIP or the BAO VSP. Federal tax laws set requirements on how you may
withdraw your own aftertax contributions and earnings on those contributions. Aftertax
contributions made before January 1, 1987, may be withdrawn apart from any earnings. If
you withdraw your pre-1987 contributions (without earnings), they are fully non-taxable.
Aftertax contributions made after December 31, 1986, must include a portion of the
earnings on those contributions when withdrawn. The earnings must be withdrawn in the
same ratio as they exist in your total account balance at the time of the withdrawal.
Remember, when you withdraw aftertax contributions, there is no tax due. When ever
earnings are withdrawn, they are subject to tax. Twenty percent of the taxable portion of any
withdrawal will be withheld for income tax purposes unless you elect to directly roll over
the taxable portion of the withdrawal to an Individual Retirement Account (IRA) or another
qualified plan. Also, you generally will owe a 10 percent federal tax penalty on the taxable
amount if you are under age 59 1⁄2 when you take your withdrawal. You also may owe a
state tax depending on where you live.
Employer matching contributions will not be suspended following an aftertax withdrawal.
The aftertax portion of your account balance may also be eligible to rollover to an IRA or
another qualified plan. You will need to make sure that the new plan will accept the aftertax
money.
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Rollover withdrawals
If you are an active participant, you will be allowed to withdraw your rollover aftertax
contributions, rollover pretax contributions and earnings. Twenty percent of the taxable
portion of any withdrawal will be withheld for federal income tax purposes and applicable
state taxes unless you elect to directly roll over the withdrawal to an Individual Retirement
Account (IRA) or another qualified plan. Also, you generally will owe a 10 percent federal
tax penalty on the taxable amount if you are under age 59 1⁄2 when you take your
withdrawal. You also may owe a state tax depending on where you live.
Employer matching contributions will not be suspended following a rollover withdrawal.
Hardship withdrawals of pretax contributions
Tax rules require that withdrawals of pretax contributions be limited to certain types of
immediate and substantial financial needs. The money you request for a hardship
withdrawal will be taken from your account in the following order: your aftertax
contributions, your rollover aftertax contributions, your rollover pretax contributions, your
pretax contributions and your employer matching contributions. You may apply for a
hardship withdrawal to meet specific financial hardships (defined below) which cannot be
met by any other financial resources. Hardship withdrawals are only permitted to alleviate
one or more of the following financial needs:
• Expenses for un-reimbursed medical care (IRC Section 213) previously incurred for an
employee, or immediate family member of the employee.
• Costs directly related to your purchase of a principal residence (excluding ongoing
mortgage payments).
• Payment of tuition, related educational fees, and room and board expenses, for the next 12
months of post-secondary education for you, or your spouse, children, or dependents.
• Payments necessary to prevent your eviction from your principal residence or foreclosure
on the mortgage on the residence.
• Funeral expenses of an immediate family member.
• Repairs of your principal residence.
• Following a leave without pay or if you are otherwise absent without pay for 15
consecutive business days or more, after you have exhausted all vacation and sick leave.
• Payment of a lump sum child support order (Court order only).
• Payment of past due federal or state taxes (IRS or state notice only).
If you have one or more of the listed financial needs, you must first try to take care of the
need with a combination of available withdrawals from the VIP, BAO VSP or any other
Boeing plan, loans or by selling other assets. You may request a hardship withdrawal only
after you have exhausted all other possibilities. If you are eligible for the dividend payout
program and your hardship withdrawal is approved between the ex-date and the dividend
payout date (the dividend payout date will be posted on the Boeing Savings Plans Online
website each quarter), your Boeing Stock Fund quarterly dividend will automatically be
distributed to you. The amount of your hardship withdrawal will be reduced by your
dividend payment.
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How to submit a hardship withdrawal application
You may request a hardship withdrawal at any time as long as you meet the qualifications.
Along with your completed application, you also must submit written documentation of
your financial need, such as a purchase and sales agreement signed by both buyer and seller,
a foreclosure or eviction notice, medical bills or tuition statements. You must certify in
writing that the amount you are requesting is not greater than the amount of your financial
need, plus any taxes you may owe as a result of your withdrawal. You also must certify that
the amount requested is not available from any combination of the following sources:
• insurance payments;
• reasonable liquidation of assets by you, your spouse or your dependents;
• a withdrawal of aftertax contributions from your VIP, BAO VSP account or any other
plan sponsored by Boeing;
• a loan from your VIP, BAO VSP account or any other plan sponsored by Boeing;
• a loan from a commercial source such as a bank or credit union.
Your application and documentation will be reviewed by plan representatives. If you do not
complete them satisfactorily, your hardship withdrawal request will be denied. Also, if you
have available funds in any other Boeing-sponsored plan, your hardship withdrawal will not
be approved until those funds are liquidated.
Taxes and penalties for hardship withdrawals
You are responsible for all taxes and penalties. Money you withdraw from your pretax
account is taxable as ordinary income at your regular tax rate. The plan will withhold
federal tax according to the participant’s election. If no election is made, 10% will
automatically be withheld from your distribution. You may owe additional taxes if your tax
liability is higher than the amount withheld. State taxes also may be withheld, depending on
your state of residence. In addition to income taxes, you generally will have to pay a federal
tax penalty equal to 10 percent of the taxable portion of your withdrawal if you are under
age 591⁄2. Many states impose a similar penalty tax. However, ordinary income taxes as
well as any applicable early withdrawal penalty may apply.
The employer matching contribution will stop during the six months following the
withdrawal. The employer matching contribution will resume after this six-month period if
you continue your personal contributions.
This withdrawal guide summarizes the plan’s official legal text. See your VIP or BAO VSP Summary
Plan Description booklet and Benefits Updates for more detailed information. Every effort has been
made to provide an accurate summary of the VIP and BAO VSP withdrawal process. In the event of a
conflict between this summary and the Plan, the terms of the Plan will control.
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