New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Is a Rollover into an IRA the Right Move for You as a Chesapeake Energy Employee?

Healthcare Provider Update: Healthcare Provider for Chesapeake Energy: Chesapeake Energy utilizes a variety of healthcare providers for its employees, primarily partnering with Blue Cross Blue Shield (BCBS) for health insurance coverage. This long-standing relationship allows Chesapeake Energy to offer a comprehensive benefits package that facilitates access to necessary medical services for its workforce. Potential Healthcare Cost Increases in 2026: As we look towards 2026, Chesapeake Energy employees may face significant healthcare cost increases attributed to anticipated rate hikes within the Affordable Care Act (ACA) marketplace. Premiums are projected to rise dramatically, with reports indicating potential average increases of around 20%, and in some states, even exceeding 60%. The looming expiration of enhanced federal premium subsidies is a critical factor, as it could lead to out-of-pocket premium costs surging by over 75% for the majority of policyholders. This combination of rising medical costs and subsidy reductions will require careful planning from both the company and its employees to manage the impending financial impact effectively. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Chesapeake Energy-sponsored plan. You may also gain more investment options than what may have been available in your Chesapeake Energy-sponsored plan. You may also gain oversight of managing these important retirement assets from your trusted Advisor.

If you roll your retirement plan assets over into an IRA account that you already own through your Advisor, you also receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.

'Receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.'

brown rocky mountain beside blue sea during daytime

Some of the benefits of rolling your money into an IRA include:

Tax-deferred growth potential: This generally avoids current income tax and distribution penalties when removed from a Chesapeake Energy-sponsored retirement plan.

More investment choices: This allows for additional contributions, if eligible. IRAs can be combined and handled by one provider, thereby reducing trustee costs and consolidating statements. Protection from creditors in federal bankruptcy proceedings. The combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.

However, there are also some important considerations that Chesapeake Energy should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Chesapeake Energy-sponsored retirement plan.
Fees and expenses depend largely on the investments you choose.
Loans from an IRA are not allowed.
Early distributions may be subject to a 10% IRS tax penalty in addition to income tax.
RMDs begin April 1 following the year you reach 70½ and annually thereafter; leaving the money in the former Fortune-500 plan may allow RMDs to be delayed until separation from service.
IRAs are subject to state laws governing malpractice, divorce, creditors (outside of bankruptcy), and other lawsuits; leaving the money in the former Chesapeake Energy-plan may provide additional protection against creditors.
Net unrealized appreciation (NUA) is the difference between what you paid for employer securities and their increased value. You lose favorable tax treatment of NUA if the funds are rolled into an IRA.

Hopefully, these insights will be helpful as you plan your retirement from Chesapeake Energy.

For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/will-your-retirement-plan-retire-with-you-e-brochure-offer

Featured Video

Articles you may find interesting:

What is the purpose of the 401(k) plan offered by Chesapeake Energy?

The purpose of the 401(k) plan at Chesapeake Energy is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.

How can employees enroll in the Chesapeake Energy 401(k) plan?

Employees can enroll in the Chesapeake Energy 401(k) plan by accessing the company’s benefits portal and following the enrollment instructions provided.

Does Chesapeake Energy offer a company match for 401(k) contributions?

Yes, Chesapeake Energy offers a company match for employee contributions to the 401(k) plan, which helps to enhance retirement savings.

What types of investment options are available in the Chesapeake Energy 401(k) plan?

The Chesapeake Energy 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

At what age can employees start withdrawing from their Chesapeake Energy 401(k) plan without penalties?

Employees can start withdrawing from their Chesapeake Energy 401(k) plan without penalties at age 59½, subject to certain conditions.

Can employees take loans against their Chesapeake Energy 401(k) plan?

Yes, employees may have the option to take loans against their Chesapeake Energy 401(k) plan, subject to the plan's specific rules and limits.

What happens to the 401(k) plan if an employee leaves Chesapeake Energy?

If an employee leaves Chesapeake Energy, they can choose to roll over their 401(k) balance into another retirement account, leave it in the Chesapeake plan, or cash it out, subject to taxes and penalties.

Is there a vesting schedule for the company match in the Chesapeake Energy 401(k) plan?

Yes, Chesapeake Energy has a vesting schedule for the company match, meaning employees must work for a certain period before they fully own the matched funds.

How often can employees change their contribution amounts to the Chesapeake Energy 401(k) plan?

Employees can typically change their contribution amounts to the Chesapeake Energy 401(k) plan at any time, subject to plan rules and payroll processing schedules.

What is the maximum contribution limit for the Chesapeake Energy 401(k) plan?

The maximum contribution limit for the Chesapeake Energy 401(k) plan is determined by IRS regulations, which may change annually; employees should check the latest limits for accuracy.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

In 2024, Chesapeake Energy announced a significant restructuring effort, including a reduction in workforce and changes to its pension plan. The company is focusing on streamlining operations to adapt to fluctuating energy prices and reduce operational costs. Benefits and 401(k) plans are also being evaluated for adjustments to ensure financial stability.

Additional Articles

Check Out Articles for Chesapeake Energy employees

For more information you can reach the plan administrator for Chesapeake Energy at 6100 N. Western Ave. Oklahoma City, OK 73118; or by calling them at 1-405-848-8000.