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'The new 2023 retirement contribution limits present ExxonMobil employees with a good prospect to improve their financial position by making the most of tax-deferred investments because this practice helps them build up their retirement funds.' Consulting with Tyson Mavar , a representative of The Retirement Group, a division of Wealth Enhancement Group, reveals that “
'T he 2023 contribution limits present ExxonMobil employees with a chance to improve their retirement savings so that they can enhance their financial security just before they retire.” Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group, says, 'The revised contribution limits in 2023 are a chance for ExxonMobil employees to increase their retirement contributions and, therefore, improve their financial security near the time of their retirement.'
In this article, we will discuss:
1. Some of these cost-of-living adjustments have risen to nearly historical levels due to persistently high inflation and financial instability in the recent past.
2. Keep in mind that this post is intended to provide information only and therefore you should talk to an accounting or tax advisor before modifying your 2023 tax plan.
3. You can also contact your financial advisor to see if he or she can offer information about the changes coming your way.
Last Update:
This blog post was updated to include further guidance on the new year's implications for ExxonMobil employees.
Individual Retirement Accounts (IRAs) Beginning in 2023, traditional IRAs for ExxonMobil workers will allow a maximum contribution of $6,500, which is $500 more than the previous year. The amount of catch-up contributions made by people over fifty remains at $1,000 which makes the total contribution limit $7,500. Individuals must withdraw funds from their Traditional IRA accounts no later than their 73rd birthday because withdrawals are taxed as ordinary income and withdrawals before age 59½ may attract a 10% federal income tax penalty.
Roth IRAs Due to the phase-out inco:me range increased by $9,000, Roth IRA contributions for ExxonMobil employees will phase out for single filers and heads of household between $138,000 and $153,000, and for married couples filing jointly up to $228,000. The phase-out range for married individuals filing separately stays at $0 – $10,000. For ExxonMobil employees to be eligible for tax-free and penalty-free withdrawals of earnings from Roth 401(k) distributions, the plans must have been held for at least five years and the participant must be age 59½ or older; other exceptions include the death of the plan owner.
Workplace Retirement Accounts The 2023 allowance for ExxonMobil employees who participate in 401(k), 403(b), 457 plans, and similar accounts will be $22,500, which is $2,000 more than the previous year. At age 50 participants can contribute an extra $7,500 so their contribution limit becomes $30,000. In most cases, you are obligated to begin taking minimum distributions from your 401(k) or other defined-contribution plans at age 73. Withdrawals are taxed as ordinary income and, if withdrawn prior to age 59½, may incur a 10% federal income tax penalty.
SIMPLE Accounts The limit on contributions to this incentive match plan for ExxonMobil employees will be $15,500 in 2023, after a $1,500 increase. The following are the reasons why you can’t withdraw money from your SIMPLE account: Just like a traditional IRA, you must start receiving your SIMPLE account distribution at age 73. Withdrawals are taxed as ordinary income and, if withdrawn prior to age 59½, may incur a 10% federal income tax penalty.
Important Note:
This post is meant to be informative only and therefore you should seek advice from a tax or accounting professional before you modify your 2018 tax plan.
Stripped Fact:
Here is some new information for employees of ExxonMobil companies in 2023: The annual limit on Health Savings Account (HSA) contributions has risen for the first time. The IRS has raised the HSA contribution limit for people with high-deductible health plans covering only themselves to $3,700 from $3,650 in the previous year. The HSA contribution limit for people with family coverage plans will now be $7,400 which is $100 more. Because of these higher contribution limits, ExxonMobil employees can save more in an HSA in order to fund future healthcare expenses and do so in a way that is taxed far less aggressively, which will serve as a big help in retirement. (Source: IRS.gov, Revenue Procedure 2022-48, November 2022)
Stripped Analogy:
Your retirement savings should be thought of as a perfectly calculated recipe that if properly followed will result in a happy and wealthy future. Just as a good chef will have to put more of this or that into the dish to make it taste better, retirement contributions for ExxonMobil employees also need to be optimized for the best financial result. The 2023 retirement contribution limits are the special ingredient that will make your retirement plan taste better. Just as salt adds flavor to food, then you will be able to put more money into your retirement accounts. Just as it helps to bring out the flavor of a dish, it will be to your benefit to contribute to your retirement accounts up to the new limits. So, use these limits as the key to your retirement recipe and through their help, make sure that you can enjoy your golden years to the fullest.
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Sources:
1. Internal Revenue Service. 'Retirement Topics - IRA Contribution Limits.' IRS, July 2023, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits .
2. Internal Revenue Service. 'Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans.' IRS, January 2024, https://www.irs.gov/publications/p969 .
3. Internal Revenue Service. 'Retirement Topics - 401(k) and Profit-Sharing Plan Contribution Limits.' IRS, July 2023, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits .
4. Fidelity Investments. 'HSA Contribution Limits 2024.' Fidelity Investments, January 2024, https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits .
5. Internal Revenue Service. 'Taxpayers Should Review the 401(k) and IRA Limit Increases for 2023.' IRS, November 2022, https://www.irs.gov/newsroom/taxpayers-should-review-the-401k-and-ira-limit-increases-for-2023 .
How does the ExxonMobil Savings Plan compare against typical retirement savings plans, and what unique features does it offer that can benefit employees approaching retirement? Additionally, can you elaborate on the necessary steps ExxonMobil employees should take within the savings plan to ensure maximum contributions and employer match during their service years?
ExxonMobil Savings Plan: ExxonMobil's Savings Plan offers flexibility with pre-tax, after-tax, and Roth contributions, and features a 7% company match for the first 6% of employee contributions, a unique benefit compared to typical plans. Employees should contribute the maximum percentage to receive the full match and regularly review their investment allocations through the Voya platform(ExxonMobil_2024_ExxonMo…).
What are the eligibility criteria for employees to participate in the ExxonMobil Pension Plan, and how is the retirement benefit calculated? As employees consider their long-term savings strategy, how does the option of a lump-sum distribution versus an annuity influence their financial planning at ExxonMobil?
ExxonMobil Pension Plan: Employees are automatically enrolled and eligible for benefits after five years of service, with full retirement benefits offered at 55 with 15 years of service. The pension is calculated based on 1.6% of final average pay multiplied by years of service, minus a social security offset. Lump-sum and annuity options affect long-term financial planning, with lump sums offering immediate flexibility while annuities provide a steady income(ExxonMobil_2024_ExxonMo…).
In what ways does the ExxonMobil Employee Assistance Program (EAP) support employees during personal or family crises, and what confidentiality measures are in place to protect their privacy? Additionally, how can ExxonMobil employees access these services, and what are the key resources available through this program?
Employee Assistance Program (EAP): ExxonMobil's EAP provides confidential counseling services for personal and family issues like anxiety, addiction, and family conflict. Services are accessible by phone, video chat, or text, with privacy strictly protected. Employees can contact ComPsych for guidance and support through the GuidanceNow app or website(ExxonMobil_2024_ExxonMo…).
With the introduction of Flexible Spending Accounts (FSAs) at ExxonMobil, how do these accounts help employees manage their health care and dependent care expenses more effectively? What guidelines should employees follow to ensure they maximize their tax advantages while complying with IRS regulations during the enrollment process?
Flexible Spending Accounts (FSAs): FSAs at ExxonMobil allow employees to reduce taxable income by contributing pre-tax dollars to healthcare or dependent care expenses. Employees should estimate their expenses carefully during the enrollment period and comply with IRS rules, ensuring they submit claims by April 15th of the following year(ExxonMobil_2024_ExxonMo…).
How does ExxonMobil define "work-life balance," and what specific benefits and programs are in place to support this philosophy for employees? Can you discuss how employees can utilize these options, such as flexible schedules and leave of absence policies, without negatively impacting their career progression within the company?
Work-Life Balance: ExxonMobil promotes work-life balance with programs like “Flex Your Day,” allowing flexibility in work hours, and up to 20 days of back-up dependent care. Employees are encouraged to use these options strategically to maintain career progression while balancing personal obligations(ExxonMobil_2024_ExxonMo…).
In light of the various medical plan options offered at ExxonMobil, how should employees approach selecting the right plan to best meet their healthcare needs? What factors should they consider, including family health history and financial implications, when making their decisions?
Medical Plan Selection: ExxonMobil offers Aetna POS II and network-only options, allowing employees to choose between plans based on cost, coverage, and provider access. Employees should assess their family's healthcare needs, financial situation, and preferred providers when selecting the most appropriate plan(ExxonMobil_2024_ExxonMo…).
For ExxonMobil employees nearing retirement, what resources are available to help them understand the nuances of health benefits coordination through Medicare and their ExxonMobil coverage? How can they best navigate this transition, and what checkpoints should they be aware of to ensure they remain compliant with company policies during retirement?
Retirement Health Benefits and Medicare: ExxonMobil offers resources to help employees coordinate health benefits with Medicare upon retirement. Employees nearing retirement should explore their options through the Your Total Rewards portal and ensure compliance with company policies during the transition(ExxonMobil_2024_ExxonMo…).
What financial education resources does ExxonMobil provide to employees to promote informed decision-making about their retirement savings and benefits? Can you detail how programs like the Financial Fitness Program enable employees to strategically manage their finances and plan for retirement?
Financial Education Resources: ExxonMobil's Financial Fitness Program, provided in collaboration with Ernst & Young, helps employees manage their finances with resources such as EY Navigate and personalized financial planning. This program supports informed decision-making about retirement and savings strategies(ExxonMobil_2024_ExxonMo…).
As part of the benefits provided by ExxonMobil, how does the company facilitate employee participation in volunteer programs and charitable activities through the ExxonMobil Foundation? How can employees engage with these initiatives while also balancing their work commitments?
Volunteer Programs: Through the ExxonMobil Foundation, employees can engage in charitable activities via the Volunteer Involvement Program (VIP), which offers grants to nonprofits based on time spent volunteering. Participation in these programs is flexible, enabling employees to balance work commitments with volunteer efforts(ExxonMobil_2024_ExxonMo…).
How can ExxonMobil employees get in touch with benefits representatives to address specific questions about their retirement and savings plans? What are the recommended channels and best times to reach out for assistance to ensure they receive timely and relevant information about their options?
Contacting Benefits Representatives: Employees can reach out to the ExxonMobil Benefits Service Center at 833-776-9966 during business hours (8 a.m. to 4 p.m. CST) for assistance with retirement and savings plan questions. The Your Total Rewards portal also offers 24/7 access for reviewing and managing benefits(ExxonMobil_2024_ExxonMo…).
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