Transitioning from RTX to Retirement: Your Pre-Retirement Checklist

You’ve spent years building your career at Raytheon — now it’s time to turn that career into lasting retirement income. But retiring from a company like RTX involves more than just giving notice and collecting a pension or 401(k).

There are critical financial, tax, and timing decisions that can make or break your retirement strategy.

This article is your pre-retirement checklist — built specifically for Raytheon and RTX employees. Follow these steps to make sure you leave with confidence and control.

1. Clarify Your Retirement Date

Choose a specific target date that aligns with:

  • Your benefits eligibility

  • Pension milestones (like age 60, 62, or 65)

  • 401(k) withdrawal access (age 55 rule vs. 59½)

  • Healthcare transition plans

Tip: If you retire in the year you turn 55 or later, you may be able to access your 401(k) penalty-free directly from the plan — avoiding the 10% early withdrawal penalty (IRS Rule of 55). In other words, don’t roll it to an IRA!

2. Understand Your Pension (If You Have One)

If you were hired before the 2007 pension freeze, you may still have a frozen defined benefit (DB) pension.

Make sure you:

  • Request your pension estimate from RTX or Fidelity

  • Know your annuity vs. lump sum options

  • Understand early retirement reductions

  • Time your distribution to interest rate changes (important for lump sums)

Reminder: Pension lump sums drop when interest rates rise — get the math right before you choose.

3. Review Your 401(k) Allocation

Your 401(k) - now part of the RTX Retirement & Savings Plan — may be your largest retirement asset.

Check:

  • Allocation: Are you too aggressive or too conservative?

  • Diversification: Are you overweighted in RTX stock?

  • Company contributions: Are you receiving the correct tiered match and age-based retirement contribution under RAYSIP? If you were hired before 2023, you may still be receiving a legacy match rate, which is set to expire on January 1, 2025.

  • Rebalancing: Adjust for your risk tolerance as you near retirement.

4. Evaluate Net Unrealized Appreciation (NUA)

If you hold RTX stock in your 401(k), you may qualify for NUA tax treatment when you retire.

This could:

  • Allow you to pay long-term capital gains rates instead of income tax on gains

  • Save thousands in taxes on appreciated company stock

  • Require careful timing and execution (NUA only works if done right at distribution)

Consult with a tax professional or advisor before moving any assets.

5. Plan for Healthcare

Raytheon and RTX offer retiree medical coverage for some employees, but not all.

Explore:

  • Retiree medical eligibility

  • COBRA coverage for short-term gaps

  • Marketplace options (especially if retiring before Medicare at age 65)

  • Health Savings Account (HSA) planning if you’ve been contributing

Tip: Retiring before 65? Build a healthcare bridge plan for those Medicare gap years.

6. Create a Retirement Income Strategy

Now’s the time to shift from accumulation to distribution planning.

Make sure you:

  • Know when to claim Social Security

  • Coordinate pension, 401(k), HSA, and brokerage assets

  • Have a plan for Required Minimum Distributions (RMDs)

  • Think through tax-efficient withdrawals

Sequence of withdrawals and tax location matter — the wrong order can cost you more in taxes and reduce portfolio life.

7. Final Steps With Raytheon/RTX HR

Before you leave:

  • Confirm your last day and benefits cutoff

  • Elect pension or lump sum distribution

  • Decide on 401(k) rollover, in-plan distribution, or NUA strategy — and confirm that Alight’s Your Gateway platform has the correct stock lot cost basis data.

  • Submit retiree medical applications (if applicable)

  • Update your contact info and beneficiary designations

Also, download or save all final paystubs, W-2s, and benefit documentation.

8. Run a Retirement Readiness Check

Now’s the moment to take everything into account:

  • Are your expenses covered for the next 30+ years?

  • Do you have cash flow stability from various income sources?

  • Are you prepared for market volatility, inflation, and healthcare shocks?

  • Do you have a plan for legacy and estate planning?

  • Do you understand how your RTX employer contributions will change in 2025 (if you were eligible for the enhanced match before 2023)?

How We Help Raytheon Employees Retire Confidently

We work with Raytheon and RTX professionals to:

  • Analyze pensions, 401(k)s, and NUA strategies

  • Build customized retirement income plans

  • Coordinate taxes, Social Security, healthcare, and estate needs

  • Help you retire on your terms — without guesswork

Final Thought

We believe that successfully making the transition from RTX into retirement is not about your wealth—it’s about your life. Wealth is simply the means to live the life you want. And we understand that living the very best life possible means something different to each of us.

You’ve worked hard for this retirement. Now make sure it works for you.

If you're within 5–10 years of retirement and have questions about your plan—or simply want a second opinion—we're here to help. Let's have a no-pressure conversation.

Want to see how our process works? Click here to take a look.

This material was written in collaboration with artificial intelligence (ChatGPT) and derived from sources believed to be correct.

Stordahl Capital Management, Inc is a Registered Investment Adviser. This commentary is solely for informational purposes and reflects the personal opinions, viewpoints, and analyses of Stordahl Capital Management, Inc. and should not be regarded as a description of advisory services or performance returns of any SCM Clients. The views reflected in the commentary are subject to change at any time without notice. Nothing in this piece constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Advisory services are only offered to clients or prospective clients where Stordahl Capital Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Stordahl Capital Management unless a client service agreement is in place. Stordahl Capital Management, Inc provides links for your convenience to websites produced by other providers or industry-related material. Accessing websites through links directs you away from our website. Stordahl Capital Management is not responsible for errors or omissions in the material on third-party websites and does not necessarily approve of or endorse the information provided. Users who gain access to third-party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from the use of those websites. Please note that trading instructions through email, fax, or voicemail will not be taken. Your identity and timely retrieval of instructions cannot be guaranteed. Stordahl Capital Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.

Julie Stordahl