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Healthcare Provider Update: Healthcare Provider for Occidental Petroleum Occidental Petroleum collaborates with Lyra Health to provide enhanced mental health benefits. This partnership offers employees access to cost-free mental and emotional healthcare, focusing on making effective services convenient and accessible. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs for employees at Occidental Petroleum are expected to rise significantly due to various market pressures. A recent forecast indicates an overall increase of approximately 8.5% in healthcare spending, driven by rising hospital and health system operating costs, along with increased demand for behavioral health services. Additionally, if enhanced federal premium subsidies for ACA marketplace plans are allowed to expire, many employees could face drastic hikes in their out-of-pocket costs. This scenario underscores the need for proactive planning and strategic adjustments in employee healthcare benefits amid a shifting economic landscape. Click here to learn more
The new rules for inherited IRAs mean Occidental Petroleum employees need to understand how to plan for the ten-year distribution window, says [Advisor Name], a representative of the Retirement Group, a division of Wealth Enhancement Group.
With the IRS clarifying inherited IRAs, Occidental Petroleum employees and retirees should navigate these changes to protect their legacy, says [Advisor Name], a representative of the Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
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1. The effects of the Secure Act on inherited IRAs and changes for non-spouse beneficiaries.
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2. Just released IRS guidance on Required Minimum Distributions (RMDs) for 2023.
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3. Impacts of these rules on different beneficiaries and strategies for managing inherited IRAs.
The rules for Required Minimum Distributions (RMDs) for inherited Individual retirement accounts (IRAs) have often created confusion and ambiguity in retirement planning. The Secure Act changed how non-spouse beneficiaries can manage inherited IRAs in 2019 and effectively eliminated that option for most beneficiaries. Yet the Internal Revenue Service recently clarified the issue for anyone who inherited an IRA after 2019.
What the Secure Act Means to You.
A 2019 Secure Act changed how beneficiaries could manage inherited IRAs. Before the Secure Act, beneficiaries could potentially enjoy decades of tax-free or tax-deferred growth on their RMDs by extending them during their lifetimes. But the new rules require that most non-spouse beneficiaries exhaust their inherited IRAs within ten years of the death of the account owner.
For 2023 clarification on Inherited IRAs - 2023 Clarification.
The Internal Revenue Service issued new July 14 guidance for those who inherited an IRA after 2019. The latest regulations say beneficiaries in this category are exempt from this year's Required Minimum Distribution. No matter whether an RMD is required in 2023, Occidental Petroleum employees should know that inherited accounts must be exhausted within ten years.
Implications for Different Beneficiaries
You are exempt if you inherited an IRA before 2020. You're grandfathered into the regulations before the Secure Act passed. Thus you must keep your old RMD schedule and if an RMD is due this year you must take it.
Spouses who inherit IRAs from spouses have more flexibility than other beneficiaries. They can move over their spouse's IRA into their own retirement account or keep it as an inherited account. Neither spouse can stop extending distributions on account of life expectancy within the ten-year window.
Some beneficiaries are exempt from taking RMDs based on life expectancy. These include beneficiaries no younger than the original IRA owner, chronically ill or disabled beneficiaries, and the original owner's minor offspring (not grandchildren).
You do not have to take an RMD this year if you inherited an IRA after 2019 from an account holder who has already begun taking RMDs, per new IRS guidance. But watch out for any applicable final regulations. Remember the inherited account must be exhausted within ten years, so larger withdrawals during that time frame are necessary.
The new alleviation does not apply to those who inherited an IRA from someone who had not yet begun taking RMDs. The more stringent RMD rules never applied to you, but you must empty the inherited IRA within ten years of the original owner's death.
As inherited IRA rules evolve for Occidental Petroleum employees, beneficiaries, and individuals should know how those changes affect retirement plans. Whoever inherited an IRA after 2019 gets a temporary reprieve from RMDs this year, per IRS guidance. Still, the ten-year distribution window applies and withdrawals must be planned carefully.
Working with financial advisors who can customize assistance with inherited IRAs is important for anyone considering retirement or enjoying retirement now. While the planning for retirement is changing rapidly, proactive decision-making will provide a financially secure and comfortable retirement for all.
Recent studies show many retirees are using Inherited IRAs to leave a financial legacy for their loved ones. A 2022 Allianz Life survey found that nearly 68% of retired Occidental Petroleum employees wanted to leave their assets to their heirs. The new rules for Inherited IRAs mean anyone aiming for optimal estate planning must know more about the options available to beneficiaries. Occidental Petroleum employees considering retirement and current retirees can protect their assets for years to come by being informed and making the best decisions.
With the new rules, inherited IRAs are like a well-tended retirement garden. Now beneficiaries must navigate IRA distribution rules like gardeners plan and tend to a variety of plants. The Secure Act is a gardener who cuts back once-rich branches for most non-spouse beneficiaries and creates new exemptions that are as good as soil for some beneficiaries. Like those gardens that require regular care, knowing the latest IRS guidance is important for a tax-efficient inheritance harvest. With Occidental Petroleum employees nearing retirement, retirees must tend to their financial legacy like gardeners, paying attention to every detail from plant development to financial foliage pruning while still having a long-term vision of a comfortable retirement.
Added Fact:
Recent updates from the Internal Revenue Service (IRS) in January 2023 suggest possible changes to rules for beneficiaries of inherited IRAs. No immediate changes have taken place, but Occidental Petroleum employees and retirees need to know about new inherited IRA trends. The IRS has teased possible changes to the rules governing inherited accounts - and those changes could affect how beneficiaries manage those accounts. And staying current with changing rules regarding inherited IRAs will be critical for adapting to those changes.
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Added Analogy:
It's like sailing a ship in rough water navigating inherited IRAs under changing rules. Just as experienced sailors adjust course amid shifting winds and uncertain currents, so must Occidental Petroleum workers approaching retirement and retirees adjust their financial strategies as IRS regulations for inherited IRAs change. The Secure Act of 2019 provided a new navigation chart, reversing a familiar route and imposing time limits on beneficiaries. Now, new IRS hints suggest more changes - like unpredictable weather - are possible. For a smooth ride in this turbulent sea of inherited IRAs, having a compass aboard and consulting financial advisors is like having a navigator on board who can point you in the right direction for your financial future.
Sources:
1. Internal Revenue Service (IRS). 'Retirement Topics - Beneficiary.' IRS , U.S. Department of the Treasury, www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary . Accessed 2 Mar. 2025.
2. Internal Revenue Service (IRS). 'Notice 2023-54: Relief for Beneficiaries Regarding RMDs.' IRS , U.S. Department of the Treasury, 14 July 2023, www.irs.gov/pub/irs-drop/n-23-54.pdf . Accessed 2 Mar. 2025.
3. Vanguard Group, Inc. 'RMD Rules for Inherited IRAs.' Vanguard , 2024, investor.vanguard.com/investor-resources-education/retirement/rmd-rules-for-inherited-iras. Accessed 2 Mar. 2025.
4. Carlton Fields Law Firm. 'IRS Clarifies Application of RMD Rules to Inherited Retirement Accounts.' Carlton Fields , 2024, www.carltonfields.com/insights/publications/2024/irs-clarifies-application-of-required-minimum-distribution-rules-to-inherited-retirement-accounts . Accessed 2 Mar. 2025.
5. Lankford, Kimberly. 'New Inherited IRA Tax Rules Every Beneficiary Should Know.' Kiplinger , 2023, www.kiplinger.com/taxes/inherited-ira-four-things-beneficiaries-should-know . Accessed 2 Mar. 2025.
What are the key provisions of the Occidental Petroleum Corporation Retirement Plan that employees should understand to maximize their benefits, and how does the company structure its contributions relative to employees' earnings? As employees of Occidental Petroleum Corporation consider their retirement planning, it's vital to grasp how the company's contributions function, particularly concerning the wage base and annual earnings limits.
Key Provisions of the Occidental Petroleum Corporation Retirement Plan: The Occidental Petroleum Corporation Retirement Plan is fully funded by the company, with contributions based on an employee's annual earnings. The company contributes 7% of annual earnings up to the Social Security wage base ($137,700 in 2020) and 12% on earnings above the wage base. This structure is designed to help employees build substantial retirement savings. The plan's benefit limits align with IRS regulations, and employees should be aware of how these contributions are applied based on annual earnings limits to maximize their benefits(Occidental_Petroleum_Co…).
How can Occidental Petroleum Corporation employees manage their investment options within the Retirement Plan, and what resources does the company provide to help them make informed decisions? The investment options available through the Occidental Petroleum Corporation Retirement Plan serve as a significant tool for employees wishing to tailor their retirement savings according to their financial goals and risk tolerance. Understanding these options can be complex and requires an in-depth exploration of available funds, associated risks, and projected performance.
Managing Investment Options: Occidental Petroleum employees have control over how contributions to their Retirement Plan are invested. The plan offers various investment funds, including bond and stock market index funds, and target date funds. Employees can manage their investment elections through the online platform, oxy.voya.com, which also provides fund performance data and advice resources, such as Online Advice and Professional Management services, to assist employees in making informed decisions(Occidental_Petroleum_Co…).
In what ways do vesting schedules impact employees' retirement benefits at Occidental Petroleum Corporation, and what rights do employees have under the Employee Retirement Income Security Act (ERISA) regarding these benefits? Navigating the vesting schedule can make a profound difference in the go-forward retirement landscape for employees. Occidental Petroleum Corporation offers a structured approach to vesting, impacting when benefits are owned outright, and understanding the implications of ERISA for retirement planning is essential for all employees.
Impact of Vesting Schedules: Occidental Petroleum's Retirement Plan vests fully after three years of service. Employees are always fully vested in any Rollover accounts. Vesting schedules impact when employees can fully claim their retirement benefits, with protections under ERISA that guarantee the right to earned benefits. Employees who leave before vesting forfeit the nonvested portion of the company’s contributions(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the distribution options available for employees of Occidental Petroleum Corporation when they reach retirement age, and how do these options affect their financial planning? The variety of distribution options at Occidental Petroleum Corporation can create a much more personalized retirement plan, allowing employees to consider how best to receive their benefits while factoring in tax implications and future income needs.
Distribution Options at Retirement: Employees reaching retirement age (60) have multiple distribution options from the Retirement Plan, including lump sum payments and annuity options. These choices impact financial planning, as each option has different tax and income implications, allowing employees to tailor their benefits to their future financial needs(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation support employees who experience disability, and what provisions are in place for continuing retirement contributions during such periods? Understanding the support structure provided by the company, specifically in relation to short-term and long-term disability, is crucial for employees who may find themselves in unexpected circumstances. It’s important for them to know whether retirement contributions will continue during their disability or if they might need to make adjustments to their financial planning.
Disability and Retirement Contributions: Occidental Petroleum continues to contribute to the Retirement Plan if an employee is receiving short-term disability benefits. The contributions are based on the employee's actual pay during the disability period. This provision ensures that retirement savings can continue during times of temporary disability, supporting long-term financial planning(Occidental_Petroleum_Co…).
How can employees at Occidental Petroleum Corporation ensure their beneficiary designations remain current and what are the implications of these designations for estate planning? The process of maintaining accurate beneficiary designations is critical for the smooth transition of retirement benefits, and employees must be aware of how changes in personal circumstances can impact these designations.
Beneficiary Designations: Employees should regularly update their beneficiary designations to ensure their retirement benefits are directed as desired upon their death. Changes in personal circumstances such as marriage, divorce, or the death of a previously designated beneficiary should prompt an update. Failure to do so may result in unintended allocations(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the specific eligibility requirements for the Occidental Petroleum Corporation Retirement Plan, and how do these requirements differ for various employee categories, such as full-time versus part-time employees? Recognizing the nuances of eligibility criteria within the retirement plan is essential for employees to understand when they can begin to participate and what contributions may apply, especially if they transition between roles.
Eligibility Requirements: Full-time and part-time non-union employees and some union-represented employees are eligible to participate in the plan. Contributions begin automatically on the first day of the month of employment or eligibility. Understanding the specific eligibility requirements, especially for employees transitioning between full-time and part-time roles, ensures accurate participation and benefit accumulation(Occidental_Petroleum_Co…).
How can employees reach out to Occidental Petroleum Corporation for assistance regarding their Retirement Plan benefits, and what are the best practices for ensuring their inquiries are addressed promptly? Effective communication with the company is key during the retirement planning process. Employees should know how to navigate company channels to maximize their understanding of benefits available to them.
Contacting Occidental Petroleum for Assistance: Employees can manage their retirement plan and address inquiries through the Oxy Retirement Service Center and the oxy.voya.com platform. Best practices for ensuring prompt responses include using the appropriate online tools and staying informed about plan updates and changes(Occidental_Petroleum_Co…).
What are the tax implications of distributions from the Occidental Petroleum Corporation Retirement Plan, and how can employees plan accordingly to minimize their tax burden during retirement? Having a comprehensive understanding of how taxes will impact withdrawals is crucial for employees as they strategize their retirement income, and these tax considerations can play a significant role in long-term financial planning.
Tax Implications of Distributions: Distributions from the Occidental Petroleum Retirement Plan are subject to standard federal and state taxes, including required minimum distributions (RMDs) starting at age 72. Employees should consider consulting a tax advisor to minimize tax burdens and maximize retirement income by understanding the specific tax consequences of various distribution options(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation's retirement plan structure address the needs of employees transitioning from active service to retirement, particularly in terms of investment performance and management of existing accounts? As employees consider retirement, they should be well-informed about how the company manages contributions already made, ensuring that their investment strategy aligns with their anticipated retirement lifestyle and goals.
Transition from Active Service to Retirement: Occidental Petroleum supports employees transitioning to retirement by continuing contributions and offering a range of investment options that align with long-term financial goals. This structure allows employees to manage their investments effectively during retirement, ensuring that the plan remains aligned with their financial objectives(Occidental_Petroleum_Co…).
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