L3 Harris

L3Harris Retirement Benefits: A Guide for DFW-Area Employees

If you work for L3Harris Technologies in the Dallas-Fort Worth area, whether at the Greenville campus, in Plano, or at another North Texas location, your L3Harris retirement benefits package deserves more attention than most employees give it. Between a solid 401(k) match, the potential for a Mega Backdoor Roth strategy, and a frozen pension that still holds real value for longer-tenured employees, there are decisions here that can meaningfully change your retirement trajectory. This guide breaks down the key features so you can make informed choices about your financial future.

The plan details in this guide are believed to be accurate as of March 2026 based on publicly available plan documents and SEC filings. However, employers can change benefits at any time. Always verify your specific plan details through your company’s benefits portal or HR department before making any decisions.

The L3Harris 401(k) at a Glance

The L3Harris Retirement Savings Plan is a defined contribution plan administered through Fidelity Workplace Services, with investment assets held in the L3Harris Retirement Savings Plan Master Trust managed by Northern Trust as trustee. You can manage your account through Fidelity NetBenefits or by calling the L3Harris Benefits Service Center at 800-528-7711.

The plan accepts three types of employee contributions: pre-tax, Roth (designated after-tax), and after-tax contributions. This three-part structure is important because it opens the door to advanced tax planning strategies, including the Mega Backdoor Roth, which we’ll cover below.

L3Harris 401(k) Match: How It Works

L3Harris provides a 100% match on your contributions up to 6% of eligible pay, meaning the company matches you dollar-for-dollar on the first 6% you contribute. If you earn $140,000 and contribute at least 6%, L3Harris adds another $8,400 to your account. That’s $8,400 of additional compensation you’d leave behind if you contributed less than the match threshold.

One important detail: matching contributions don’t begin until you’ve completed one year of service. If you’re in your first year at L3Harris, you’ll want to plan around this. Once eligible, make sure you’re contributing at least 6% from day one of eligibility to capture the full match going forward.

The employer match vests on a three-year cliff vesting schedule. That means 0% vested until you hit three years of service, then 100% vested. If you leave L3Harris before completing three years, you forfeit the entire unvested employer match. Your own contributions, of course, are always 100% vested immediately.

New for 2026: L3Harris now offers a 401(k) match on qualifying student loan payments. If you’re paying down student loans and can’t afford to contribute to the 401(k), you may still receive matching contributions based on your loan payments. Check with your benefits center for eligibility details.

2026 Contribution Limits

For 2026, the IRS has set the following limits for 401(k) plans:

Contribution Type 2026 Limit
Employee elective deferral (pre-tax + Roth) $24,500
Catch-up contribution (age 50-59, 64+) $8,000
Enhanced catch-up (age 60-63) $11,250
Total annual additions limit (employee + employer, Section 415(c)) $72,000

If you’re between 60 and 63, the enhanced “super” catch-up provision under SECURE 2.0 allows you to contribute an additional $11,250 instead of the standard $8,000. That means someone in this age range could defer up to $35,750 in employee contributions alone in 2026.

One important note for higher earners: if you earned more than $150,000 in 2025, catch-up contributions must be made as Roth (after-tax) contributions under the SECURE 2.0 rules. This isn’t optional for those above the threshold.

Mega Backdoor Roth: Does L3Harris Allow It?

The L3Harris Retirement Savings Plan allows after-tax contributions beyond the standard $24,500 pre-tax/Roth deferral limit, up to the overall Section 415(c) limit of $72,000 (which includes employer contributions). Based on plan documents, the plan also permits in-service withdrawals, which are a key ingredient for the Mega Backdoor Roth strategy.

Here’s how the strategy works in practice:

  • You contribute the maximum $24,500 in pre-tax or Roth deferrals
  • L3Harris contributes its 6% match (let’s say $8,400 on a $140,000 salary)
  • You then contribute additional after-tax dollars up to the $72,000 total limit, which in this example would be up to $39,100 in after-tax contributions
  • You convert or roll over those after-tax contributions to a Roth IRA or Roth 401(k) account

The result: you’ve effectively funneled tens of thousands of additional dollars into Roth tax treatment in a single year. Over a 10- to 20-year career, this strategy can build a substantial pool of tax-free retirement income. Confirm the specific mechanics with the L3Harris Benefits Service Center, as plan provisions for in-plan Roth conversions versus in-service rollovers to an outside Roth IRA can vary.

Investment Options and Company Stock

The plan offers a range of investment options including target-date funds, index funds, actively managed funds, and a stable value fund. For employees who want broader access, the plan includes Fidelity BrokerageLink, a self-directed brokerage window that opens up a much wider universe of investments beyond the plan’s core menu.

The plan also includes an L3Harris company stock fund (LHX). While L3Harris is a major defense contractor with strong government contract revenue, it’s worth being intentional about how much of your retirement savings is tied to your employer’s stock. Between your salary, your match, and any RSUs or stock options you hold, concentration in L3Harris can build up over time without you realizing it. Diversification remains your best protection against company-specific risk.

The L3Harris Pension: What You Need to Know

L3Harris maintains the L3Harris Salaried Pension Plan, a defined benefit pension plan for eligible employees. However, there are two critical details that determine whether this benefit applies to you.

First, eligibility is limited to employees hired before January 1, 2007. If you joined L3Harris (or legacy Harris Corporation or L3 Technologies) after that date, you do not have a pension benefit.

Second, the pension plan is frozen. Following the 2019 merger of Harris Corporation and L3 Technologies, L3Harris froze benefit accruals in the defined benefit plans. Supplemental executive retirement plan accruals ceased effective December 31, 2019, and multiple legacy pension plans were consolidated effective December 31, 2020. If you had an accrued benefit at the time of the freeze, that benefit is preserved but no longer grows with additional service or pay increases.

For eligible employees, the pension offered two calculation formulas:

  • Traditional Pension Plan: Based on years of benefit service and final average pensionable earnings, this formula works similarly to most corporate pensions, rewarding longer tenure and higher compensation
  • Pension Equity Plan: Uses a lump-sum-based accrual formula where value accumulates over time based on a percentage of pay, typically more portable than the traditional formula

At retirement, participants can choose from several payment options including a life annuity (monthly payments for your lifetime), a contingent annuity (reduced monthly payments with a survivor benefit for your spouse), or a lump sum distribution. Each option has different tax treatments, survivor benefits, and trade-offs. Normal retirement age is 65, with early retirement available at age 55 if you have at least five years of vesting service.

If you have a frozen pension benefit, the lump sum vs. annuity decision is one of the most consequential financial choices you’ll make at retirement. Key factors include your health and longevity expectations, other guaranteed income sources (like Social Security), your comfort managing investments, and your estate planning goals. For a deeper look at how to think through this decision, see our RTX Pension: Lump Sum vs. Monthly Payments guide, which covers the same analytical framework that applies to any corporate pension.

Roth vs. Traditional: Which Makes Sense?

With the L3Harris plan allowing both pre-tax and Roth contributions, the question of which to use comes up often. The short answer: it depends on where you think your tax rate is headed.

If you’re in your peak earning years and expect to be in a lower bracket in retirement, pre-tax contributions give you a larger tax deduction now when it’s worth the most. If you’re earlier in your career or believe tax rates will be higher in the future, Roth contributions lock in today’s rate and give you tax-free withdrawals later.

For many L3Harris employees, the best answer is a combination of both. Contributing some pre-tax and some Roth gives you tax diversification, which means flexibility in retirement to pull from whichever bucket minimizes your tax bill in a given year. This is especially powerful in the years between retirement and age 73 (when Required Minimum Distributions begin), when strategic Roth conversions can significantly reduce your lifetime tax burden.

Other L3Harris Benefits Worth Knowing

Employee Stock Purchase Plan (ESPP): L3Harris offers an ESPP that allows eligible employees to purchase company stock at a discount. For employees who can afford to participate, the ESPP provides a built-in return on the discount, but you’ll want a plan for selling shares regularly to avoid building up too much concentration in LHX stock.

RSUs and Stock Options: L3Harris provides restricted stock units and stock options as part of compensation for many employees. RSUs vest over time and convert into shares, while stock options give you the right to purchase shares at a fixed price. Both add to your overall L3Harris exposure, making diversification planning even more important.

HSA Availability: If you’re enrolled in a high-deductible health plan (HDHP), L3Harris offers access to a Health Savings Account (HSA). The HSA is one of the most tax-efficient savings vehicles available: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. After age 65, HSA funds can also be used for non-medical expenses (taxed as ordinary income, similar to a traditional IRA).

Healthcare in Early Retirement: If you’re considering retiring before 65, bridging the gap to Medicare eligibility is a critical planning consideration. Evaluate your options including COBRA, ACA marketplace coverage, and a spouse’s employer plan. With healthcare costs projected to rise significantly in 2026, building a realistic healthcare budget into your early retirement plan is essential.

How It All Fits Together

The real value of L3Harris’s benefits isn’t any single piece. It’s how they work together as part of a coordinated retirement plan:

  • Maximize the match: Contribute at least 6% to capture the full dollar-for-dollar employer match
  • Use the Mega Backdoor Roth: If your cash flow allows, after-tax contributions converted to Roth can dramatically accelerate your tax-free retirement savings
  • Don’t forget the frozen pension: Even frozen, a pension benefit can be worth hundreds of thousands of dollars. Factor it into your overall retirement income plan, and think carefully about the lump sum vs. annuity decision when the time comes
  • Diversify your L3Harris exposure: Between company stock in the 401(k), ESPP shares, and RSUs, monitor your total LHX concentration
  • Build tax diversification: A mix of pre-tax, Roth, and taxable accounts gives you the most flexibility in retirement to manage your tax bracket year by year
  • Coordinate all income sources: Your 401(k) withdrawal strategy, pension commencement, and Social Security timing should be planned together rather than in isolation

Where to Manage Your L3Harris Retirement Benefits

You can access your L3Harris Retirement Savings Plan through Fidelity NetBenefits at netbenefits.com. For questions about your 401(k), contribution elections, or investment options, contact the L3Harris Benefits Service Center at 800-528-7711.

For pension benefit information, log into the My Benefits Portal at l3harris.com/employees, where you can review your accrued pension benefit, run retirement estimates, and update personal information.

Guides for Other DFW Employers

If your spouse or family member works at another major DFW employer, these guides may be helpful:

I’m about to retire from L3Harris. How do I create retirement income from my 401(k)?

Accumulating money in your 401(k) is one thing, but turning it into reliable income that lasts 30+ years is a different challenge entirely.

How much can you safely spend? Which accounts do you draw from first? How do you coordinate your 401(k) with Social Security — and minimize your lifetime tax bill along the way?

These questions don’t have one-size-fits-all answers. Getting them wrong can mean retiring later than you planned, running out of money, or overpaying the IRS.

At 7 Saturdays Financial, retirement income planning is our core focus. We specialize in helping pre-retirees and retirees — including L3Harris employees and alumni — build comprehensive plans that address not just investments, but spending strategy, tax efficiency, and the peace of mind that comes from knowing you have a plan that’s prepared for whatever life throws your way.

We’re a fee-only, flat-fee firm with no products to sell and no incentive tied to which funds you hold. Our only job is to help you retire with confidence and spend with clarity.

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Note: this article is general guidance and education, not advice. Consult your money person or your attorney for financial, tax, and legal advice specific to your situation.