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

Essential Year-End Tax Strategies for Marathon Petroleum Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Marathon Petroleum Marathon Petroleum primarily partners with Cigna and Anthem Blue Cross Blue Shield to provide healthcare benefits to its employees. These partnerships ensure that employees have access to comprehensive health insurance plans, including medical, dental, and vision coverage. Potential Healthcare Cost Increases in 2026 As we look towards 2026, healthcare costs for employees at Marathon Petroleum are likely to surge. Record premium hikes are predicted in the marketplace, with some states facing increases of over 60%. Factors such as the expiration of enhanced federal premium subsidies and rising medical costs are crucial drivers behind these increases. Similar to broader trends across the industry, employees could see their out-of-pocket expenses rise dramatically, potentially exceeding 75% for many, complicating access to affordable healthcare amid escalating costs. This scenario emphasizes the need for strategic decision-making in selecting insurance options before the upcoming enrollment periods. Click here to learn more

Here are some things for Marathon Petroleum employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
Marathon Petroleum employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a Marathon Petroleum employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
Marathon Petroleum employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a Marathon Petroleum employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a Marathon Petroleum employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Marathon Petroleum employees to request a Form W-4 change and for their employers from Marathon Petroleum to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by Marathon Petroleum employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a Marathon Petroleum-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, Marathon Petroleum employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a Marathon Petroleum-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

6. Take the required minimum distributions
If you are a Marathon Petroleum employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Marathon Petroleum-sponsored retirement plans (special rules apply if you're still working and participating in Marathon Petroleum's retirement plan). You have to make the withdrawals by the date required — the end of the year for most individuals. The penalty for failing to do so is substantial: 50% of the amount that wasn't distributed on time. As a fortune 500 employee, making these distributions in a timely manner is essential as to avoid the late penalty.

7. Weigh year-end investment moves
Marathon Petroleum employees and retirees shouldn't let tax considerations drive investment decisions. However, it's worth considering the tax implications of any year-end investment moves that you make. For example, if you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some or all of those gains by selling losing positions. As a Marathon Petroleum employee, any losses over and above the number of your gains can be used to offset up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your taxes in future years.

Tags: Financial Planning , Tax , Retirement , 2022

How does the vesting schedule within the Marathon Petroleum Retirement Plan impact an employee's long-term financial security, and what steps can employees take to ensure they are fully vested by their intended retirement age with Marathon Petroleum?

The vesting schedule within the Marathon Petroleum Retirement Plan generally requires three years of service for an employee to become fully vested. This means that if an employee leaves before completing three years of service, they may forfeit their pension benefits. To ensure full vesting by the intended retirement age, employees should maintain continuous employment with Marathon for at least three years or more. Additionally, employees can consider keeping track of their vesting progress through available resources such as Fidelity’s NetBenefits system to align with their long-term financial security goals.

In what ways do the new in-service distribution features for employees aged 59Â½ and above alter the landscape of retirement planning for Marathon Petroleum employees, and how should employees consider these options in their overall retirement strategy with Marathon?

The new in-service distribution feature, effective November 1, 2022, allows employees aged 59½ and above to take distributions from their Legacy Retirement Benefit without having to retire or terminate employment. This option can alter retirement planning by providing more flexibility for accessing funds while still employed. Employees should evaluate whether taking distributions early aligns with their financial goals, considering potential tax implications and the impact on their remaining retirement balance(Marathon_Petroleum_Comp…).

Employees working for Marathon Petroleum Company often have questions regarding their benefits when considering early retirement. How do the options for Cash Balance Retirement Benefits at Marathon compare to traditional pension plans, and what factors should employees weigh when deciding which option aligns best with their retirement goals?

Marathon’s Cash Balance Retirement Benefit offers a lump-sum option based on accumulated pay and interest credits, differing from traditional pension plans that typically provide a fixed monthly annuity. When comparing these options, employees should consider factors like their need for liquidity, risk tolerance, and life expectancy. The Cash Balance option may offer more flexibility, while traditional pensions provide a predictable, lifelong income stream. Employees should also factor in the availability of early retirement benefits and how these options align with their retirement objectives(Marathon_Petroleum_Comp…).

What specific processes must a Marathon Petroleum employee follow to initiate the application for their retirement benefits, and are there specific documents that need to be prepared and submitted to the Plan Administrator to avoid delays in this process?

To initiate the application for retirement benefits, Marathon Petroleum employees must contact the Marathon Benefits Center at Fidelity, ideally 45 to 180 days before their desired retirement date. Required documents include properly completed benefit election forms and spousal consent if applicable. Submitting all necessary paperwork in advance helps avoid delays. Employees should also review benefit estimates through Fidelity to ensure accurate calculations(Marathon_Petroleum_Comp…).

Given the importance of spousal consent in the Marathon Petroleum Retirement Plan, what are the legal implications of not obtaining this consent before electing certain payment options, and how can employees ensure compliance with these requirements while planning their retirement with Marathon?

Spousal consent is a critical legal requirement in the Marathon Petroleum Retirement Plan, particularly when electing non-survivor options like a lump sum. Failing to obtain consent can invalidate certain payment elections. To ensure compliance, employees should submit a notarized spousal consent form during the retirement application process to avoid legal disputes and ensure a smooth transition to retirement(Marathon_Petroleum_Comp…).

What are the rights and responsibilities of Marathon Petroleum employees under the Employee Retirement Income Security Act (ERISA), particularly concerning the enforcement of retirement benefits, and how does this legislation protect employees' interests within the Marathon Petroleum Retirement Plan?

Under ERISA, Marathon Petroleum employees have rights such as receiving plan information, benefiting from fiduciary oversight, and accessing grievance procedures. ERISA ensures employees’ retirement benefits are protected and can be enforced if disputes arise. Employees can rely on ERISA to safeguard their interests, including ensuring fair treatment and timely payment of their pension benefits(Marathon_Petroleum_Comp…)(Marathon_Petroleum_Comp…).

How do the contributions and funding mechanics of the Marathon Petroleum Retirement Plan serve to benefit its employees, and what assurances do employees have that the benefits will be available to them upon retirement?

Marathon Petroleum funds the Retirement Plan through employer contributions, held in a trust fund to secure future benefits. Employees are assured that their benefits are backed by this trust, and the Plan is subject to federal insurance through the Pension Benefit Guaranty Corporation (PBGC) for additional security. The plan’s mechanics, including pay and interest credits, ensure steady growth of employees’ retirement funds(Marathon_Petroleum_Comp…)(Marathon_Petroleum_Comp…).

In cases of military service, what provisions does the Marathon Petroleum Retirement Plan offer to employees on leave, and what steps must these employees take to ensure their service time is credited toward their benefits with Marathon upon their return?

Employees on military leave are protected under USERRA, ensuring their service time is credited toward their benefits when they return to Marathon Petroleum. To ensure service time is recognized, employees must provide proper notice before leave and return to work within the timeframes outlined by USERRA. Military service credit helps preserve and enhance retirement benefits for these employees(Marathon_Petroleum_Comp…).

What options do Marathon Petroleum employees have if they experience a denial of their retirement benefits claims, and what steps can they take to appeal these decisions effectively within the guidelines set forth by the Marathon Petroleum Retirement Plan?

If a Marathon Petroleum employee's retirement benefits claim is denied, they can follow the plan’s formal appeals process, starting with submitting a written claim to the Plan Administrator. If denied again, they may file an appeal, which will be reviewed by the Plan Administrator. Employees must adhere to deadlines and ensure they provide all necessary documentation for their appeal(Marathon_Petroleum_Comp…).

How can Marathon Petroleum employees get in touch with the Plan Administrator or utilize available resources to obtain more information about their retirement benefits, including pension calculations and plan details, ensuring they have the most accurate and current information to aid in their retirement planning?

Employees can contact the Plan Administrator through Fidelity’s NetBenefits system or the Marathon Benefits Center for assistance with pension calculations and plan details. These resources provide up-to-date information and tools, such as benefit estimates, to help employees plan their retirement strategy. Employees can also obtain plan documents for more in-depth information(Marathon_Petroleum_Comp…).

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

Cash balance pension plan where benefits accrue as a percentage of annual pay, with the rate depending on the sum of the employees age and years of service.

Marathon Petroleum offers RSUs to its executives and key employees. RSUs vest over multiple years, promoting alignment with long-term company goals.