NEW UPDATE: How the Trump Tax Bill will Impact You:

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

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Diamondback Energy-sponsored plan. You may also gain more investment options than what may have been available in your Diamondback 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 Diamondback 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 Diamondback Energy should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Diamondback 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 Diamondback 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 Diamondback 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 type of retirement plan does Diamondback Energy offer?

Diamondback Energy offers a 401(k) retirement savings plan to help employees save for their future.

Is there a company match for contributions to the 401(k) plan at Diamondback Energy?

Yes, Diamondback Energy provides a company match for employee contributions to the 401(k) plan, enhancing your retirement savings.

How can I enroll in the 401(k) plan at Diamondback Energy?

Employees can enroll in the Diamondback Energy 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What is the eligibility requirement to participate in Diamondback Energy's 401(k) plan?

Most employees at Diamondback Energy are eligible to participate in the 401(k) plan after completing a specified period of service.

What investment options are available in Diamondback Energy's 401(k) plan?

Diamondback Energy's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can I change my contribution percentage to the 401(k) plan at Diamondback Energy?

Yes, employees can change their contribution percentage to the Diamondback Energy 401(k) plan at any time, subject to certain guidelines.

Does Diamondback Energy offer loans against the 401(k) plan?

Yes, Diamondback Energy allows employees to take loans against their 401(k) plan balance, subject to the plan's terms and conditions.

How often can I change my investment allocations in the Diamondback Energy 401(k) plan?

Employees can change their investment allocations in the Diamondback Energy 401(k) plan as frequently as they wish, typically through the plan’s online portal.

What happens to my 401(k) if I leave Diamondback Energy?

If you leave Diamondback Energy, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the Diamondback plan if eligible.

Are there any fees associated with the Diamondback Energy 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with the Diamondback Energy 401(k) plan, which are disclosed in the plan documents.

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

For Diamondback Energy, the company offers a 401(k) plan under the name "Diamondback Energy 401(k) Plan" with eligibility based on service and age requirements that vary slightly depending on employee classification. The company uses industry-specific terminology and acronyms, including "FANG" as its stock symbol and commonly referring to its operations as part of the Permian Basin. For its pension plan offerings, while there is no traditional defined benefit pension available, Diamondback provides substantial retirement contributions through its 401(k) plan, matching employee contributions up to 6% of salary (Diamondback Energy) (Diamondback Energy). Regarding the years of service and age qualification, employees typically become eligible for Diamondback Energy’s 401(k) match after completing one year of service. The matching contributions are vested gradually, with full vesting occurring after 5 years of service. While detailed documentation does not explicitly list a traditional pension formula, the 401(k) match is a significant part of their retirement strategy

Restructuring and Layoffs: In early 2024, Diamondback Energy announced a restructuring plan aimed at streamlining operations and reducing costs. The plan included a reduction of 5% in workforce to align with the company's strategic goals and to enhance operational efficiency. This restructuring was influenced by fluctuating oil prices and the need to adapt to a more competitive market. Given the current economic environment, understanding these changes is crucial for investors and employees to make informed decisions.

In 2022, Diamondback Energy provided stock options and RSUs to senior executives and key employees. The RSUs typically vest over a four-year period. Eligibility was determined based on performance and tenure.

Company Official Website: For the most direct and accurate information on Diamondback Energy's health benefits. Industry News Sources: Reputable news outlets that cover employee benefits and changes in healthcare policies within the industry. Employment and Benefits Websites: Sites like Glassdoor, Indeed, or LinkedIn for employee reviews and company benefit details. Company Reports: Annual reports or benefits summaries released by Diamondback Energy. Healthcare and Insurance Providers: Websites of insurance providers that partner with Diamondback Energy, if available.

Additional Articles

Check Out Articles for Diamondback Energy employees

For more information you can reach the plan administrator for Diamondback Energy at 500 West Texas Ave, Suite 1200 Midland, TX 79701; or by calling them at (432) 221-7400.

https://www.thelayoff.com/#google_vignette https://www.yahoo.com/?err=404&err_url=https%3a%2f%2ffinance.yahoo.com%2fnews%2fdiamondback-energy-announces-spin-off-213000473.html