Intel Retirement Benefit FAQs
As you approach retirement, it becomes more important than ever to make sure you’re on the right track for a financially secure retirement. Here’s what you need to know to maximize your Intel retirement benefits.
Intel Retirement FAQs
When can I retire from Intel?
The standard age of retirement at Intel is 65. However, there are some scenarios when you can retire earlier.
If you are at least 55 years old and have completed at least 15 years of eligible service, you can retire early under the Rule of 55.
If your age plus years of service (both in completed, whole years) equals 75 or greater, you can retire under the Rule of 75.
How do I calculate my years of service at Intel?
A year of service is 12 consecutive months during which you receive pay from Intel, including normal periods of absence for vacations, holidays, and temporary approved leaves. You receive credit for a year of service after completing 365 days without a break in service of 12 months or more.
If you left Intel and were later rehired, the calculation becomes more complex. In that case, you should verify your years of service with HR.
When can I access my 401(k) without penalties?
If you're 59½ or older, you can withdraw from your 401(k) without the 10% early withdrawal penalty. You can also access your 401(k) if you retire early via the Rule of 55.
What is the "Rule of 75"?
The Rule of 75 is when your age plus years of service equals 75 or more. This qualification provides enhanced benefits, including accelerated stock vesting and extended option exercise periods.
Intel 401(k) Savings Plan
What is Intel's 401(k) matching contribution?
Intel matches up to 5% of your salary through their 401(k) Savings Plan. This is a substantial employer contribution that you should absolutely maximize. It's essentially free money toward your retirement.
What are the 2025 contribution limits for Intel's 401(k)?
For 2025, you can contribute up to $23,500 in employee deferrals. If you're 50 or older, you can make an additional $7,500 through catch-up contributions. Employees aged 60–63 have a special opportunity: they can contribute up to $11,250 as catch-up contributions instead of the standard $7,500.
The total contribution limit (including employer contributions) is $73,500 for 2025 (or $81,000 if you're over 50).
Can I contribute both pre-tax and Roth to my Intel 401(k)?
Yes! Intel offers both traditional pre-tax and Roth 401(k) options. You can split your contributions between both types, as long as your total employee contributions don't exceed the annual limit.
What is the Intel Mega Backdoor Roth strategy?
Intel allows after-tax contributions beyond the standard limits, up to the total limit of $73,500 ($81,000 if 50 or older). Our team can help evaluate strategies that may enhance retirement outcomes; results will vary based on individual circumstances.
Meet Clients Who Chose Retirement
From worker to world traveler, snowboarder, and mountain biker!
Intel Minimum Pension Plan
Does Intel still offer a pension?
Intel’s Minimum Pension Plan (MPP) is a legacy benefit that still exists, but only for a small group of employees. To be eligible, you must have been hired before January 1, 2011 at Grade 6 or below, and you must meet certain retirement age/service requirements.
For eligible employees, Intel calculates a “minimum benefit” based on your earnings history and years of service, then compares that amount to the annuitized value of your Retirement Contribution Account (RCA). You’ll receive whichever is higher — either your RCA balance or the calculated minimum pension benefit.
If you were hired on or after January 1, 2011, you are not covered by the MPP and will not receive a pension from Intel. Your primary Intel-funded retirement benefit is the 401(k) Savings Plan employer match.
When will I get my Intel pension payments (if applicable)?
If you retire before age 65 and your pension benefit exceeds $5,000, it will automatically be paid as an annuity at age 65 unless you elect another distribution option. You can choose to start benefits earlier, but the amount will be reduced.
Can I withdraw from both my 401(k) and my pension in retirement?
Yes, you can access both, but they work differently.
Your 401(k) gives you full control over withdrawals. You can take lump sums, set up regular payments, or leave it invested.
Your Intel pension requires you to choose a distribution method before age 65 (monthly payments, lump sum, or joint survivor annuity). Many retirees use pension income for guaranteed monthly expenses and 401(k) withdrawals for flexibility and larger purchases.
What is the Retirement Contribution Account?
The Retirement Contribution Account (RCA) is a company-funded retirement account that was part of Intel’s legacy retirement program. It was available only to employees hired before January 1, 2011 and received non-elective contributions from Intel — typically 4% of eligible compensation for employees under age 50 and up to 5% for those age 50 and older.
Intel stopped making new contributions to RCAs after 2019. If you have an RCA balance today, it continues to grow or shrink based on investment performance in your Fidelity account, but no new company credits are being added.
If you were hired on or after January 1, 2011, you will not have an RCA. Instead, Intel provides retirement funding through the 401(k) Savings Plan employer match.
Stock Benefits and Retirement
What happens to my Intel stock options when I retire?
Retirees age 60 or older and those meeting the Rule of 75 benefit from accelerated vesting on unvested options and an extended expiration period. You typically have up to one year from retirement (or original expiration date) to exercise vested options.
What about my Restricted Stock Units (RSUs)?
Unvested RSUs will be canceled as of your last day worked, unless you qualify for accelerated vesting. Retirees age 60 or older receive one additional year of vesting for every five years of service.
What happens to my stock options if I don't meet retirement requirements?
If you don't qualify as an official retiree:
You have only 90 days to exercise vested stock options after leaving
All unvested options are forfeited
No accelerated vesting occurs
How does the accelerated vesting work for stock benefits?
Retirees age 60 or older will receive one additional year of vesting for every five years of service. Those meeting the Rule of 75 will receive one additional year of vesting. This applies to both stock options and RSUs.
Meet Clients Who Chose Retirement
Setting a retirement date isn’t easy, but it’s a lot easier with a Fiduciary and a plan.
Health Benefits in Retirement
What health coverage does Intel offer retirees?
Intel provides the Intel Retiree Medical Plan (IRMP) for eligible retirees and their dependents. The plan offers premium coverage but comes at a premium cost.
What is SERMA and how does it work?
The Sheltered Employee Retirement Medical Account (SHERMA) is a Health Reimbursement Arrangement for employees hired before 2014. Intel contributes $1,500 for each year of completed eligible service to this account.
How can I use my SERMA funds?
You can use SERMA credits to pay for Intel Retiree Medical Plan premiums or reimburse yourself for eligible non-Intel-sponsored health care premiums. This gives you flexibility in choosing your retirement healthcare coverage.
When does my SERMA become available?
For new retirees, SERMA will become available 45–60 days after your retirement date.
What happens if I don't use my SERMA?
Your SERMA is forfeited if the account has not been used after 20 consecutive years. There's no cash value. It's only used for health-related expenses.
Can I opt out of SERMA to get ACA subsidies?
If you are not Medicare eligible and you determine that you are eligible for the federal premium tax credit, you may opt out of SERMA for the year. This will freeze your SERMA balance, and you will not be able to use SERMA to pay for Intel or non-Intel sponsored healthcare premiums.
SERPLUS (For Eligible Employees)
What is SERPLUS?
SERPLUS is Intel's executive deferred compensation plan for highly compensated employees (typically Grade 10–20). It allows eligible employees to defer salary and bonuses beyond 401(k) limits.
How much can I defer to SERPLUS?
Eligible employees can defer up to 60% of salary and 75% of bonuses or commissions.
How does SERPLUS vesting work?
Employee deferrals to SERPLUS are always 100% vested immediately. Intel's company contributions to SERPLUS typically vest over six years, though employees who reach age 60, pass away, or become permanently disabled while employed become fully vested in company contributions.
When can I access my SERPLUS funds?
You can choose when and how to receive your SERPLUS account balance upon retirement or separation from Intel. Distribution options are typically elected when you first participate in the plan, and you can often choose lump sum payments or installments.
How are my SERPLUS funds taxed?
SERPLUS works like a traditional pre-tax 401(k) for tax purposes. Your contributions are excluded from your taxable income, your balance grows tax-deferred, and you pay ordinary income tax when you withdraw the funds in retirement.
Start Planning Your Dream Retirement Today
After years of hard work, your retirement should be a time of peace and adventure, not stress. Intel's comprehensive benefits package gives you multiple income streams and tax-advantaged opportunities that many retirees can only dream of. However, making the most of your Intel retirement benefits takes careful planning.
At TrueWealth, we specialize in helping professionals like you optimize their retirement plans. Whether you're planning your exit strategy or already retired, we can help you optimize your benefits and design a retirement plan that fits your lifestyle and goals.
Ready to see what your Intel benefits can really do for you? Schedule a free consultation with one of our fiduciary financial advisors, and we’ll be happy to answer all your questions.
Meet Clients Who Chose Retirement
Retiring at 55 takes a special strategy.