Tips for Intel Employees Nearing Retirement
You've spent years building your career at Intel, and now retirement is on the horizon. Whether you're planning to retire in the next few years or you're eligible today, there are important decisions ahead that will affect your financial security for decades to come.
The good news? Intel offers excellent retirement benefits. The challenge? There are numerous moving parts, deadlines, and decisions that can significantly impact your retirement income. Missing key details or making poor timing choices could cost you thousands of dollars.
This guide covers the most important steps to take as you approach retirement from Intel, helping you maximize your benefits and avoid costly mistakes.
1. Confirm Your Retirement Eligibility
Before diving into benefit decisions, make sure you understand Intel's retirement eligibility rules. To qualify as an "official" Intel retiree and access retiree benefits, you must meet one of these criteria:
Age 65: Reach age 65 with any years of service
Rule of 55 & 15: Be at least 55 with 15+ years of eligible service
Rule of 75: Your age plus years of service equals 75 or more
Meeting these requirements can unlock access to Intel's Retiree Medical Plan (IRMP), SERMA benefits (if hired before 2014), and equity acceleration benefits. The rule of 55 & 15 will also allow you to access your 401(k) funds before age 59½ without the usual early withdrawal penalties.
Calculate Your Years of Service Accurately
Years of service calculations can be tricky, especially if you had breaks in employment. Here's what counts:
12 consecutive months of receiving Intel pay (including vacation, holidays, and approved leaves).
Breaks of 12 months or less don't affect your years of service.
If you left and returned within 5 years, prior service will count toward your rule of 75 and rule of 55 eligibility.
Double-check your years of service calculation, as it affects multiple benefits, including equity acceleration and SERMA contributions.
2. Optimize Your Equity Compensation
Your RSUs and stock options can be significant wealth builders in retirement, but the rules change when you leave Intel.
Understand Acceleration Benefits
If you meet the rule of 75 or are age 60+, Intel provides retirement-related equity accommodations that can significantly boost your retirement wealth. These may include accelerated vesting on unvested RSUs and stock options, plus extended timeframes to exercise vested options.
Plan Your RSU Strategy
When RSUs vest at retirement, you'll owe ordinary income taxes on the full value at your marginal tax rate. If you have $100,000 worth of RSUs vesting and you're in the 32% tax bracket, you'll owe about $32,000 in taxes.
You have choices about what to do with the shares:
Sell immediately: Eliminates concentration risk and provides cash for other investments or expenses
Hold some shares: If you believe Intel stock will appreciate, but limit this to 5-10% of your total portfolio
Use proceeds strategically: Fund other retirement accounts, pay down debt, or create a cash reserve for early retirement
The key is planning ahead so you're not forced to make hasty decisions when large amounts vest.
Handle Stock Options Carefully
Stock options give you the right to buy Intel stock at a set price (the "strike price"). They're only valuable if Intel's current stock price is above your strike price. For example, if you have options with a $40 strike price and Intel stock is trading at $60, each option is worth $20.
The timing of when you exercise matters for taxes:
Incentive Stock Options (ISOs): May qualify for capital gains treatment if you hold shares long enough, but can trigger Alternative Minimum Tax
Non-Qualified Stock Options: Taxed as ordinary income when exercised
If you're age 60+ or meet the rule of 75, you have up to one year to exercise vested options. Otherwise, you only have 90 days after retirement. For valuable options, this extended time can be worth thousands of dollars in flexibility.
3. Maximize Your 401(k) and SERPLUS
Your final years at Intel are often your highest earning years, making them ideal for maximizing retirement contributions.
Max Out Your Final Contributions
In your last year of employment, ensure you're contributing enough to get Intel's full 5% match. Consider maxing out 401(k) contributions as well.
For employees under 50, the IRS limit on 401(k) contributions is $23,500 in 2025.
If you're 50+, you can contribute an additional $7,500 (total $31,000).
If you're ages 60-63, you may be eligible for "super catch-up" contributions of $11,250 (total $34,750)
If you're a high earner, use the mega backdoor Roth program to invest more after-tax dollars and increase your savings even more.
Plan Your SERPLUS Distributions
If you've been contributing to SERPLUS, you had to elect your distribution timing when you first enrolled. Your choice affects when you receive the money and how it's taxed:
Lump sum at separation: You get all your deferred money plus investment growth in one payment. This creates a large taxable income spike in your first retirement year, potentially pushing you into higher tax brackets.
5- or 10-year payments: Distributions are spread over multiple years, which can help manage your tax brackets. For example, if you deferred $50,000 annually for 15 years and it grew to $1 million, you'd receive about $100,000 annually over 10 years instead of $1 million all at once.
In-service distributions: These allow you to receive some money while still employed, but have strict rules and timing requirements.
Review your SERPLUS distribution elections carefully and confirm the exact timing rules with Intel HR or plan administrators.
Consider 401(k) Distribution Options
You have several options for your Intel 401(k) after retirement:
Leave it with Intel (if balance is over $5,000)
Roll it into an IRA for more investment options
Roll it into a new employer's plan
Take distributions (if you're 59½ or older)
A fiduciary financial advisor can help you make the right choice in your case.
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4. Navigate Health Benefits Transition
Healthcare is often retirees' biggest expense after housing. Intel's health benefits can help, but require careful planning.
Evaluate Intel Retiree Medical Plan (IRMP)
If you meet retirement eligibility, you can continue health coverage through IRMP, but it comes at a cost. The plan offers two main options:
Anthem Medicare Preferred (PPO) for Medicare-eligible retirees (65+): This plan coordinates with Medicare and includes prescription drug coverage. It's comprehensive but typically more expensive than Medicare Supplement plans.
High Deductible Health Plan for non-Medicare retirees: This works like employer coverage, but at full cost to you. Premium costs vary annually and are published in Intel's IRMP materials.
IRMP provides continuity of coverage without medical underwriting, and for some retirees, the comprehensive benefits justify the higher cost. However, many retirees find better value in marketplace plans or Medicare supplements. The right choice will depend on:
Your health status and prescription needs
Whether you qualify for marketplace subsidies
The value of keeping your current doctors
How IRMP premiums compare to alternatives
Maximize Your SERMA Benefits (If Applicable)
If you were hired before January 1, 2014, you'll have a SERMA account funded with $1,500 for each year of eligible service. This is essentially free money for healthcare costs, but it comes with strings attached.
How SERMA works: If you have 20 years of service, you'd have $30,000 in your SERMA account. You can use this money to reimburse yourself for:
IRMP premiums
Other qualified health insurance premiums (including spouse's coverage)
Eligible medical expenses under IRS rules
Important limitations:
SERMA funds earn minimal interest (typically 1-2% annually)
Intel can reclaim unused funds after 20 consecutive years of non-use
The account isn't available until 45-60 days after retirement
You must submit receipts for reimbursement
Strategy: If you have access to SERMA funds, plan to use them relatively early in retirement rather than letting them sit and potentially be reclaimed.
Coordinate with Medicare
If you're approaching 65, understanding Medicare's interaction with Intel benefits can save you money and avoid penalties. Medicare has four parts:
Part A (hospital): Automatic if you're receiving Social Security
Part B (medical): Requires enrollment and has monthly premiums (standard premium set annually by CMS)
Part C (Medicare Advantage): Private plans that replace Parts A & B
Part D (prescription drugs): Required to avoid future penalties
If you're still working at Intel when you turn 65, you may be able to delay Medicare Part B enrollment without penalty since you have "creditable coverage." However, you still need to enroll in Part A.
Intel's Medicare plan coordinates with Medicare as the primary payer, which can provide more comprehensive coverage than Medicare alone.
Important note: You have a 7-month window around your 65th birthday to enroll in Medicare without penalties. If you miss this window and don't have creditable coverage, you'll pay higher premiums for life.
5. Plan Your Social Security Strategy
Social Security timing can significantly impact your lifetime benefits. Here are key considerations for Intel retirees:
Understand Your Options
Age 62: Earliest eligibility, but benefits are permanently reduced to about 70% of the full amount (if your full retirement age is 67)
Full retirement age (66-67, depending on birth year): 100% of benefits
Age 70: Maximum benefits at about 124% of the full amount (if your full retirement age is 67)
Coordinate with Intel Benefits
Social Security timing becomes more complex when you have substantial other retirement income from Intel. Here's how to think about coordination:
Bridge strategy: Many Intel retirees use 401(k) withdrawals or SERPLUS distributions to bridge the gap between retirement and full Social Security benefits. For example, you might retire at 62 but delay Social Security until age 67, using other income sources in the meantime.
Tax management: Social Security benefits become taxable when your "combined income" (adjusted gross income + half of Social Security) exceeds certain thresholds. For single filers, 50% of benefits are taxable starting at $25,000 combined income, and 85% are taxable at $34,000+. This means large SERPLUS distributions could increase taxes on your Social Security.
Medicare impact: If you delay Social Security past your full retirement age, you still need to enroll in Medicare at 65 to avoid penalties, even if you're not taking Social Security yet.
Watch the Earnings Test
If you take Social Security before full retirement age and have earned income, benefits may be reduced. Investment income, pensions, and retirement account distributions don't count as "earnings" for this test. A financial advisor can help you avoid this pitfall.
6. Handle the Administrative Details
The final months before retirement involve important administrative tasks that can affect your benefits for years to come.
Update Your Contact Information
After leaving Intel, ensure you have a current mailing address, telephone, and email address on record with Intel for at least 18 months to receive tax and benefit information. Contact Fidelity directly at (888) 401-7377 to update your personal information for 401(k) communications, and submit any address changes by early December to receive your W-2 on time.
Review and Update Beneficiaries
Update beneficiary designations on all your accounts:
401(k) and SERPLUS accounts
Life insurance policies
Stock accounts with E-Trade
Any other Intel benefit accounts
Many people set beneficiaries years ago and forget to update them after major life events like marriage, divorce, or the birth of children.
Handle Your Stock Account Transition
Your E-Trade account remains open for 60 days after your last stock option expiration, then you may transfer assets to a non-Intel account. You’ll have to contact E-Trade within 18 months with instructions for any remaining assets. If you retire before an ESPP subscription period ends, you'll receive a refund of contributions in your final paycheck.
Plan for Final Paychecks
You might receive multiple final checks, including:
Payment for unused vacation time
Prorated annual and quarterly bonuses (if you meet eligibility requirements)
ESPP refunds if you retire mid-subscription period
Any separation payments or severance
Double-checking what you'll receive helps you plan for tax surprises.
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7. Avoid Common Mistakes
Learning from others' experiences can save you significant money and stress.
Don't Rush Important Decisions
Take time to understand your options before making irreversible choices about health insurance, 401(k) distributions, Social Security timing, and tax strategies. Many of these decisions are permanent or difficult to change later.
Don't Overlook Tax Planning
Your first retirement year often presents unique tax opportunities since you may have a lower income than your peak earning years. This can be ideal for Roth conversions, tax-loss harvesting on Intel stock positions, and strategic timing of retirement account distributions.
Don't Underestimate Healthcare Costs
Healthcare costs surprise many retirees. Factor in not just monthly premiums but deductibles, copays, and out-of-pocket maximums. Consider dental and vision coverage, and don't overlook long-term care planning.
Don't Ignore Required Minimums
Once you reach age 73, required minimum distributions begin from traditional retirement accounts. Plan ahead to avoid large tax bills and penalties. If you're still employed by Intel at 73, you may delay RMDs from your Intel 401(k) until actual retirement.
When to Get Professional Help
Intel's retirement benefits are complex, and the decisions you make affect your finances for decades. Consider working with a fee-only fiduciary advisor who understands Intel's benefits when you need help:
Planning distributions
Optimizing tax strategies
Planning Social Security and Medicare timing
Creating a comprehensive retirement income plan.
Your Next Steps
Retiring from Intel should be exciting, not stressful. By understanding your benefits and planning ahead, you can make informed decisions that set you up for financial success. Confirm your retirement eligibility, review your equity compensation, assess your distribution strategies, plan your health insurance transition, and update your beneficiaries and contact information.
At TrueWealth Financial Partners, we specialize in helping Intel employees navigate their complex benefit packages and create comprehensive retirement strategies. As fee-only fiduciary advisors, we don't sell products or earn commissions. Our success is measured entirely by your financial success.
Ready to make the most of your Intel retirement benefits?
Schedule your free 15-minute intro call today.
Together, we can make sure you're maximizing every opportunity as you transition from your Intel career to the retirement you've earned.
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