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United Launch Alliance has its headquarters and major development operations in Centennial, Colorado, with additional operations in Decatur, Alabama and at launch sites in Florida and California. ULA employees may spend decades working in engineering, aerospace, technology and launch operations while accumulating retirement savings and other benefits.
For professionals approaching retirement, the financial decisions can involve a 401(k), pension benefits, Social Security, taxable investments, IRAs and other sources of income. Our financial planning for ULA employees page covers how we help coordinate those decisions.
What retirement benefits will you have from ULA?
ULA offers employees a 401(k) plan with employer contributions, and its benefits resources also identify pension benefits and retirement savings plans for different groups of current and former employees.
That makes it important to understand exactly which benefits apply to you before setting a retirement date. Your situation may be different from another ULA employee’s depending on when you joined the company, your employment classification, previous employers and the specific retirement benefits available to you.
ULA’s benefits contacts page also lists pension-related resources for former Boeing and Lockheed Martin employees. That can matter for employees who joined ULA after working for one of those companies and still have benefits connected to a prior employer.
How much income will your retirement savings provide?
Your 401(k) balance gives you a starting point, but retirement planning requires translating that balance into an income strategy.
Suppose you have accumulated $1.5 million in retirement accounts along with $300,000 in taxable investments. The amount you can reasonably spend each year depends on your expected Social Security benefit, investment allocation, taxes, health care costs, other income and how long the assets need to last.
The same account balance can support very different retirement lifestyles depending on the household’s spending needs and other income sources.
ULA employees should also review their pension benefits carefully if they are eligible for them. A pension or annuity can provide a source of income that doesn’t depend directly on portfolio withdrawals, which can change how the rest of your investment portfolio is managed.
When should you claim Social Security?
Social Security can become an important part of the income plan once your ULA paycheck ends.
Retirement benefits can generally begin at age 62. For people reaching age 62 in 2026, full retirement age is 67. Delaying benefits after full retirement age can increase the monthly benefit until age 70.
The timing decision should be evaluated against your other income sources. Someone with substantial retirement savings may have the option of using investments for several years while delaying Social Security. Another household may prefer to begin benefits sooner to reduce withdrawals from its portfolio.
Your spouse’s Social Security benefits, expected longevity, taxes and retirement spending should also be part of the analysis.
What should you do with your ULA 401(k)?
Leaving ULA can raise an important question about your retirement account.
Depending on the circumstances, you may be able to leave the money in the existing plan, roll it into an IRA, move it to another eligible employer plan or take a distribution. The IRS allows eligible retirement plan distributions to be rolled directly to another retirement plan or IRA, subject to the applicable rules.
An IRA can provide a broader range of investment choices and make it easier to coordinate multiple retirement accounts. A ULA 401(k), however, may have useful investment options, fees or distribution provisions that should be evaluated before moving the money.
The decision also becomes more important when you have several old retirement accounts. Someone who came to ULA from Boeing, Lockheed Martin or another employer may have multiple accounts that need to be considered together.
Could Roth conversions make sense after retirement?
Retirement can create a window for tax planning.
Your taxable income may fall substantially after your ULA salary ends, particularly if you retire before beginning Social Security or taking larger retirement account distributions. Those years may create opportunities to evaluate Roth conversions.
A Roth conversion generally moves money from a traditional IRA or other eligible pre-tax retirement account into a Roth IRA. The untaxed amount converted is generally included in taxable income for the year of the conversion.
The amount converted matters. A large conversion can push income into higher tax brackets and affect other tax-related costs. A series of smaller conversions may produce a different result.
For ULA employees with significant traditional retirement savings, Roth conversion planning can be worth evaluating several years before required minimum distributions begin.
What happens when required minimum distributions begin?
Traditional IRAs and most retirement plan accounts generally require minimum distributions beginning at age 73 under current federal law. Roth IRAs and designated Roth accounts in a 401(k) generally do not require lifetime RMDs for the original account owner.
RMDs can create taxable income even when you don’t need the money for living expenses. That can affect your tax bracket, Medicare-related costs and the amount of investment income you report.
For someone who retires well before age 73, the years leading up to RMDs can provide time to evaluate the size and tax characteristics of retirement accounts and determine whether withdrawals or Roth conversions should be part of the broader strategy.
How should your investments change when you retire?
Your investment strategy may need to change when your paycheck stops.
During your working years, you may have been able to tolerate significant market volatility because your salary covered your living expenses and you were still contributing to retirement accounts. Retirement changes that equation.
You may begin taking withdrawals from your portfolio at the same time that market declines affect your account balance. That makes the relationship between investment risk, cash reserves and retirement income particularly important.
A retirement portfolio may need to support spending for decades. It also needs enough growth potential to keep pace with inflation and avoid becoming overly conservative too early.
What about health care and other retirement expenses?
Health care should be included in your retirement projections before you leave ULA.
ULA provides medical, dental and vision benefits, along with health care and dependent care spending accounts. Its benefits resources also provide information for retirees and Medicare guidance.
Once employer coverage changes, your costs may include Medicare premiums, supplemental coverage, prescriptions, deductibles and other out-of-pocket expenses.
Other expenses can change as well. Travel, home improvements, support for family members and major purchases may be more common during the first several years of retirement than later in life.
A useful retirement plan should account for how your spending is likely to change rather than applying one annual spending figure indefinitely.
When should a ULA employee retire?
The right retirement date depends on your savings, spending, benefits, taxes and income needs.
For some employees, working another year can significantly improve their position by adding another year of contributions and investment growth while shortening the period during which the portfolio needs to provide income. For others, the financial difference may be relatively small compared with the value they place on having more time outside of work.
Before choosing a retirement date, compare several scenarios. Look at what happens if you retire now, work another two or three years, or delay retirement until a particular age. Include your expected ULA benefits, Social Security, investment returns, taxes, health care costs and spending.
That analysis can give you a much clearer picture of the financial tradeoffs surrounding your decision.
What should a ULA employee consider before retirement?
A ULA retirement plan may involve several moving parts: your 401(k), pension benefits, Social Security, taxable investments, IRAs, Roth accounts, health care and future spending.
Those decisions can affect one another. The timing of Social Security can affect portfolio withdrawals. Retirement timing can affect taxes. A 401(k) rollover can affect investment and withdrawal options. Roth conversions can affect future RMDs and taxable income.
Before leaving ULA, gather your retirement plan statements, pension information, Social Security estimate, investment account balances and expected spending. Reviewing those numbers together can help you understand how much income your assets may provide and which decisions deserve attention before your last day of work.
ULA is part of Colorado’s broader aerospace and defense community. Our financial planning for aerospace and defense professionals page provides more information about our work with professionals across aerospace, defense, space and defense technology.
About the Author
Gabriel Motta, CFP®, MBA, is the founder and principal of Inclinevest Wealth Management, a fee-only fiduciary retirement financial advisor and financial planner based in Greenwood Village, Colorado. He works with high-net-worth pre-retirees and retirees throughout south Denver, across Colorado, and nationally, including clients in Highlands Ranch, Centennial, Lone Tree, Aurora, Parker, Castle Rock, and Littleton, with particular experience serving aerospace and defense professionals in Colorado and nationwide. As a retirement planner and wealth manager, Gabriel helps clients navigate retirement income planning, Social Security strategy, tax-efficient withdrawals, and equity compensation. Gabriel is a NAPFA and XY Planning Network member. Learn more about Gabriel and Inclinevest Wealth Management or schedule a conversation.
Sources
- United Launch Alliance, Benefits
- United Launch Alliance, Benefits Contacts and Retirement Plans
- United Launch Alliance, current Denver-area job postings and compensation information
- Social Security Administration, Retirement Benefits and Full Retirement Age
- Internal Revenue Service, Retirement Plan and IRA Required Minimum Distributions
- Internal Revenue Service, Rollovers of Retirement Plan and IRA Distributions
This article is for general informational and educational purposes only. It isn’t personalized investment, tax, or legal advice, and it shouldn’t be relied on as a substitute for guidance specific to your situation. Inclinevest Wealth Management is a registered investment adviser. Registration doesn’t imply any level of skill or training. Please consult a qualified professional before making decisions about your own financial circumstances.
