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 Marathon Oil Employee?

Healthcare Provider Update: Healthcare Provider for Marathon Oil: Marathon Oil utilizes various healthcare providers for its employee health insurance plans, including major national insurers such as UnitedHealthcare, Anthem Blue Cross Blue Shield, and Cigna. These partnerships typically aim to deliver comprehensive health coverage to employees, taking into account various healthcare needs and preferences. Potential Healthcare Cost Increases in 2026: As we approach 2026, employees of Marathon Oil may face significantly higher healthcare costs due to anticipated sharp increases in Affordable Care Act (ACA) premiums. Projections indicate that up to 92% of ACA policyholders could see their monthly premiums rise by over 75%, largely attributed to the expiration of enhanced federal subsidies. Coupled with record rate hikes from insurers-some exceeding 60%-these factors are creating a perfect storm for increased healthcare expenses, impacting financial planning for many employees considering retirement or changes in coverage. Without proactive strategies, employees may find themselves navigating a challenging healthcare landscape. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Marathon Oil-sponsored plan. You may also gain more investment options than what may have been available in your Marathon Oil-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.'

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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 Marathon Oil-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 Marathon Oil should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Marathon Oil-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 Marathon Oil-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 Marathon Oil.

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

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What is the 401(k) plan offered by Marathon Oil?

The 401(k) plan at Marathon Oil is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

How can I enroll in the Marathon Oil 401(k) plan?

Employees can enroll in the Marathon Oil 401(k) plan by logging into the employee benefits portal and following the enrollment instructions provided.

Does Marathon Oil offer a company match on the 401(k) contributions?

Yes, Marathon Oil offers a company match on employee contributions to the 401(k) plan, which helps employees save for retirement more effectively.

What is the maximum contribution limit for the Marathon Oil 401(k) plan?

The maximum contribution limit for the Marathon Oil 401(k) plan is determined by the IRS guidelines, which are updated annually. Employees should check the latest IRS limits for specifics.

Can I change my contribution percentage to the Marathon Oil 401(k) plan?

Yes, employees can change their contribution percentage to the Marathon Oil 401(k) plan at any time through the employee benefits portal.

What investment options are available in the Marathon Oil 401(k) plan?

The Marathon Oil 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

When can I access my funds from the Marathon Oil 401(k) plan?

Employees can access their funds from the Marathon Oil 401(k) plan upon reaching retirement age, or in cases of financial hardship, as specified in the plan guidelines.

Does Marathon Oil provide financial counseling for 401(k) participants?

Yes, Marathon Oil offers financial counseling services to help employees make informed decisions about their 401(k) investments and retirement planning.

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

Yes, Marathon Oil has a vesting schedule for the company match, which determines how much of the employer contributions employees are entitled to based on their years of service.

Can I take a loan against my Marathon Oil 401(k) plan?

Yes, employees may have the option to take a loan against their Marathon Oil 401(k) plan, subject to the terms and conditions outlined 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.

Marathon Oil offers both a pension plan and a 401(k) plan to its employees. The pension plan is a cash balance-type plan provided entirely by the company, with no need for employee enrollment. Eligible employees include full-time, part-time, and casual workers who automatically join upon starting employment. The pension plan credits a percentage of the employee’s eligible pay annually based on a combination of age and years of service. For employees under 50 years old, the credit is 7%; for those aged 50 to 69, it increases to 9%; and employees aged 70 or older receive 11%. Employees become vested in the pension plan after three years of service, and the plan is administered by Fidelity. Source: Marathon Petroleum Company LP Retirement Plan Summary (2024), page 12 (MyMPCBenefits). Marathon Oil also provides a 401(k) plan with a company match. The company matches employee contributions up to 7%, making it a highly competitive offering. This 401(k) plan is available to all employees upon hire, and contributions grow tax-deferred. Employees are encouraged to take full advantage of the company's matching contributions to maximize their retirement savings. The plan is also administered through Fidelity, with various investment options available to employees.

Restructuring: Marathon Oil confirmed plans to lay off around 5% of its U.S. workforce in early 2023. These layoffs were part of broader restructuring efforts to align with the company's cost-cutting measures. Additionally, the announcement of the ConocoPhillips acquisition in 2024 will result in further organizational changes (Marathon Oil) (MyMPCBenefits).

Marathon Oil offers stock options and Restricted Stock Units (RSUs) as part of its employee compensation packages. These options and RSUs are typically awarded to key employees as part of long-term incentive programs aimed at aligning their interests with the company’s financial performance and shareholder value. The company's stock options, represented by the ticker symbol MRO, allow employees to purchase shares at a predetermined price after a specified vesting period. These options are generally available to senior-level employees and executives as a part of their performance-based compensation. In terms of RSUs, Marathon Oil grants these units as a way to give employees actual stock after a vesting period, usually contingent upon continued employment. RSUs are often distributed to a broader group of employees, beyond just executives, as part of Marathon Oil’s incentive to retain talent. For instance, the company has emphasized its commitment to ESG (Environmental, Social, Governance) principles, and RSUs have been linked to performance metrics such as safety performance and greenhouse gas reduction goals in their executive compensation scorecards.

Marathon Oil has a comprehensive healthcare benefits program designed to meet the diverse needs of its employees, with a particular emphasis on modernizing and personalizing healthcare offerings from 2022 through 2024. Key healthcare-related terms and acronyms used by Marathon Oil include Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Employee Assistance Programs (EAPs). These programs are part of their broader strategy to offer flexible and accessible healthcare options to employees. Marathon Oil has emphasized virtual healthcare services to increase accessibility and reduce barriers to care, particularly in areas like mental health and chronic disease management. This includes virtual behavioral health services, which have seen significant engagement, helping reduce stigma and improve access to care. Additionally, they have implemented a "click and mortar" strategy that allows employees to choose between virtual and in-person appointments, enhancing convenience and flexibility (Marathon Oil) (Marathon Oil). Moreover, the company has made efforts to improve communication about their health benefits. Recognizing that underutilization of benefits often stems from a lack of awareness, Marathon Oil has adopted an omnichannel communication strategy. This includes emails, text messages, webinars, and even physical signage at work sites to ensure that all employees are fully informed about their healthcare options (Marathon Oil).

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For more information you can reach the plan administrator for Marathon Oil at , ; or by calling them at .

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