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

7 IRA Strategies and Tax Rules ExxonMobil Employees May Be Overlooking

Healthcare Provider Update: Healthcare Provider for ExxonMobil For the upcoming year, ExxonMobil's primary healthcare provider is Blue Cross and Blue Shield of Texas (BCBSTX). Effective from January 1, 2025, employees and their families will access healthcare through BCBSTX, ensuring improved network access and support for managing healthcare costs. Prescription drug services will continue to be provided by Express Scripts. Potential Healthcare Cost Increases in 2026 In 2026, ExxonMobil may experience significant healthcare cost increases, paralleling broader trends in the Affordable Care Act (ACA) marketplace. With some states projecting premium hikes of over 60% and the potential loss of enhanced federal premium subsidies, many employees could see their out-of-pocket costs escalate dramatically. The Kaiser Family Foundation has highlighted that without congressional action, most marketplace enrollees might face increases exceeding 75%. These combined pressures will necessitate careful planning and strategic healthcare decisions from ExxonMobil employees going into 2026. Click here to learn more

“ExxonMobil employees who take the time to understand evolving IRA contribution limits, spousal opportunities, and conversion rules are often better positioned to coordinate personal savings with workplace retirement benefits. I encourage individuals to review these strategies within the context of their broader retirement and estate planning goals while consulting a qualified tax advisor for guidance tailored to their specific situation.” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

“ExxonMobil employees who carefully evaluate IRA contribution limits, spousal strategies, and conversion considerations can create stronger alignment between their personal savings and employer-sponsored benefits. I encourage individuals to view these IRA decisions as part of a coordinated retirement and estate planning framework while consulting a qualified tax professional for guidance specific to their circumstances.” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Key IRA contribution rules and annual limits for 2026.
Strategic considerations such as spousal IRAs, SEP IRAs, and Roth conversions.
Special IRA situations involving alimony, children with earned income, and income phase-outs.

Seven Frequently Ignored Facts About IRAs for ExxonMobil Employees

Many ExxonMobil employees begin thinking about IRA contributions while completing their tax forms and reviewing potential deductions. Whether you participate in company-sponsored retirement benefits or contribute independently, understanding how IRAs fit into your overall strategy can help you evaluate additional planning opportunities.

You might be unaware of a few things regarding IRAs. These are seven facts that are frequently forgotten.

1. An IRA Can Be Opened and Funded by a Nonworking Spouse

A spouse who does not receive a salary can still save for retirement. If you file a joint federal income tax return and one spouse earns taxable compensation, the nonworking spouse can open and contribute to their own traditional or Roth IRA. ¹

The deductible amount of a traditional IRA contribution may be limited based on income if the working spouse participates in an employer-sponsored retirement plan.

The total annual contribution cap for Roth and traditional IRAs in 2026 is $7,500. A catch-up contribution of $1,100 is permitted for individuals age 50 and older. ¹

Combined IRA contributions for both spouses cannot exceed the taxable income reported on the joint return.

2. You Can Still Contribute Even If You Are Not Eligible for a Deduction

Your traditional IRA contribution may not be deductible if your modified adjusted gross income exceeds certain thresholds and you participate in a company retirement plan such as a 401(k) or 403(b). ²

However, nondeductible contributions may still allow earnings to grow on a tax-deferred basis until withdrawal. ²

Assets from a traditional IRA may also be converted to a Roth IRA. ³ Conversions are permitted regardless of income level, although income taxes may apply depending on the amount converted.

3. Alimony May Not Count as Taxable Compensation for IRA Contributions

Under the Tax Cuts and Jobs Act of 2017, alimony payments from divorce or separation agreements signed on or after January 1, 2019 are not deductible to the payer and are not taxable income to the recipient. ⁴

Because IRA contributions must be based on taxable compensation, post-2018 alimony typically does not qualify.

Agreements signed before January 1, 2019 are generally grandfathered under prior rules unless formally modified.

4. Self-Employed? Consider a SEP IRA

If you have consulting income, freelance work, or a side business, you may be eligible to establish a Simplified Employee Pension (SEP) IRA.

SEP IRA contributions are generally made by the employer and may qualify as business deductions. Contribution limits are substantially higher than traditional or Roth IRAs.

Self-employed individuals may contribute up to 25% of qualified compensation, subject to IRS calculation guidelines. IRS Publication 560 includes worksheets for determining limits.

To make contributions for a given tax year, a SEP IRA typically must be established by the tax filing deadline, including extensions.

5. Catch-Up Contributions for Individuals Over Age 50

Individuals age 50 or older may make additional catch-up contributions to a traditional or Roth IRA.

The catch-up amount for 2026 is $1,100, with future adjustments indexed for inflation.

6. A Child Can Contribute to a Roth IRA if They Have Earned Income

A minor with taxable earned income may contribute to a Roth IRA up to the annual limit or the amount of earned income for the year, whichever is less.

Qualified retirement accounts such as IRAs are generally not counted as assets for purposes of determining the Student Aid Index (SAI) on the Free Application for Federal Student Aid (FAFSA), although withdrawals may affect income calculations. ⁵

7. You May Still Access Roth IRA Benefits Even if You Exceed Income Limits

A Roth IRA offers potential advantages such as tax-free qualified withdrawals and no required minimum distributions for the original account holder.

Although income limits restrict direct Roth IRA contributions, individuals may convert assets from a traditional IRA to a Roth IRA regardless of income.

IRS pro-rata rules require that all traditional, SEP, and SIMPLE IRA balances be considered when determining the taxable amount. Accurate tracking of after-tax contributions requires proper reporting, including Form 8606.

Because conversion strategies can involve complex tax considerations, reviewing your personal situation with a qualified tax professional may be helpful.

Support for Your Retirement Planning

For ExxonMobil employees evaluating how IRAs coordinate with workplace retirement benefits, understanding contribution limits, conversion rules, and spousal planning opportunities can play an important role in a broader retirement strategy.

The Retirement Group can assist you in evaluating how these IRA rules align with your long-term goals. If you have questions about retirement planning, you can speak with a representative by calling (800) 900-5867 .

Disclosure: Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

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Articles you may find interesting:

Sources:

1. 'Retirement topics - IRA contribution limits.' IRS, 3 Mar. 2026. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

2. “IRA Contribution Limits for 2025 and 2026.” Fidelity Learn, Fidelity Investments, 26 Jan. 2026, www.fidelity.com/learning-center/smart-money/ira-contribution-limits .

3. Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily
include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a
Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required
minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. Investing involves
risk, including possible loss of principal.

4. 'Divorce or separation may have an effect on taxes,' IRS Tax Reform Tax Tip, July 8, 2019. https://www.irs.gov/newsroom/divorce-or-separation-may-have-an-effect-on-taxes

5. 'How 6 Different Assets Can Affect Your FAFSA and Financial Aid Eligibility.' Saving for College, by Jeffrey Trull. Jan. 15, 2026. https://www.savingforcollege.com/article/how-7-different-assets-can-affect-your-financial-aid-eligibility

How does the ExxonMobil Savings Plan compare against typical retirement savings plans, and what unique features does it offer that can benefit employees approaching retirement? Additionally, can you elaborate on the necessary steps ExxonMobil employees should take within the savings plan to ensure maximum contributions and employer match during their service years?

ExxonMobil Savings Plan: ExxonMobil's Savings Plan offers flexibility with pre-tax, after-tax, and Roth contributions, and features a 7% company match for the first 6% of employee contributions, a unique benefit compared to typical plans. Employees should contribute the maximum percentage to receive the full match and regularly review their investment allocations through the Voya platform(ExxonMobil_2024_ExxonMo…).

What are the eligibility criteria for employees to participate in the ExxonMobil Pension Plan, and how is the retirement benefit calculated? As employees consider their long-term savings strategy, how does the option of a lump-sum distribution versus an annuity influence their financial planning at ExxonMobil?

ExxonMobil Pension Plan: Employees are automatically enrolled and eligible for benefits after five years of service, with full retirement benefits offered at 55 with 15 years of service. The pension is calculated based on 1.6% of final average pay multiplied by years of service, minus a social security offset. Lump-sum and annuity options affect long-term financial planning, with lump sums offering immediate flexibility while annuities provide a steady income(ExxonMobil_2024_ExxonMo…).

In what ways does the ExxonMobil Employee Assistance Program (EAP) support employees during personal or family crises, and what confidentiality measures are in place to protect their privacy? Additionally, how can ExxonMobil employees access these services, and what are the key resources available through this program?

Employee Assistance Program (EAP): ExxonMobil's EAP provides confidential counseling services for personal and family issues like anxiety, addiction, and family conflict. Services are accessible by phone, video chat, or text, with privacy strictly protected. Employees can contact ComPsych for guidance and support through the GuidanceNow app or website(ExxonMobil_2024_ExxonMo…).

With the introduction of Flexible Spending Accounts (FSAs) at ExxonMobil, how do these accounts help employees manage their health care and dependent care expenses more effectively? What guidelines should employees follow to ensure they maximize their tax advantages while complying with IRS regulations during the enrollment process?

Flexible Spending Accounts (FSAs): FSAs at ExxonMobil allow employees to reduce taxable income by contributing pre-tax dollars to healthcare or dependent care expenses. Employees should estimate their expenses carefully during the enrollment period and comply with IRS rules, ensuring they submit claims by April 15th of the following year(ExxonMobil_2024_ExxonMo…).

How does ExxonMobil define "work-life balance," and what specific benefits and programs are in place to support this philosophy for employees? Can you discuss how employees can utilize these options, such as flexible schedules and leave of absence policies, without negatively impacting their career progression within the company?

Work-Life Balance: ExxonMobil promotes work-life balance with programs like “Flex Your Day,” allowing flexibility in work hours, and up to 20 days of back-up dependent care. Employees are encouraged to use these options strategically to maintain career progression while balancing personal obligations(ExxonMobil_2024_ExxonMo…).

In light of the various medical plan options offered at ExxonMobil, how should employees approach selecting the right plan to best meet their healthcare needs? What factors should they consider, including family health history and financial implications, when making their decisions?

Medical Plan Selection: ExxonMobil offers Aetna POS II and network-only options, allowing employees to choose between plans based on cost, coverage, and provider access. Employees should assess their family's healthcare needs, financial situation, and preferred providers when selecting the most appropriate plan(ExxonMobil_2024_ExxonMo…).

For ExxonMobil employees nearing retirement, what resources are available to help them understand the nuances of health benefits coordination through Medicare and their ExxonMobil coverage? How can they best navigate this transition, and what checkpoints should they be aware of to ensure they remain compliant with company policies during retirement?

Retirement Health Benefits and Medicare: ExxonMobil offers resources to help employees coordinate health benefits with Medicare upon retirement. Employees nearing retirement should explore their options through the Your Total Rewards portal and ensure compliance with company policies during the transition(ExxonMobil_2024_ExxonMo…).

What financial education resources does ExxonMobil provide to employees to promote informed decision-making about their retirement savings and benefits? Can you detail how programs like the Financial Fitness Program enable employees to strategically manage their finances and plan for retirement?

Financial Education Resources: ExxonMobil's Financial Fitness Program, provided in collaboration with Ernst & Young, helps employees manage their finances with resources such as EY Navigate and personalized financial planning. This program supports informed decision-making about retirement and savings strategies(ExxonMobil_2024_ExxonMo…).

As part of the benefits provided by ExxonMobil, how does the company facilitate employee participation in volunteer programs and charitable activities through the ExxonMobil Foundation? How can employees engage with these initiatives while also balancing their work commitments?

Volunteer Programs: Through the ExxonMobil Foundation, employees can engage in charitable activities via the Volunteer Involvement Program (VIP), which offers grants to nonprofits based on time spent volunteering. Participation in these programs is flexible, enabling employees to balance work commitments with volunteer efforts(ExxonMobil_2024_ExxonMo…).

How can ExxonMobil employees get in touch with benefits representatives to address specific questions about their retirement and savings plans? What are the recommended channels and best times to reach out for assistance to ensure they receive timely and relevant information about their options?

Contacting Benefits Representatives: Employees can reach out to the ExxonMobil Benefits Service Center at 833-776-9966 during business hours (8 a.m. to 4 p.m. CST) for assistance with retirement and savings plan questions. The Your Total Rewards portal also offers 24/7 access for reviewing and managing benefits(ExxonMobil_2024_ExxonMo…).

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

ExxonMobil offers a traditional defined benefit pension plan that provides a monthly retirement benefit. Employees can choose between a lump-sum payment or a monthly annuity. The plan calculates benefits based on final average pay and years of service.

Layoffs and Restructuring: ExxonMobil announced plans to lay off approximately 1,900 employees in 2024 as part of its ongoing restructuring efforts. These layoffs are aimed at improving cost efficiency and adapting to market changes amidst fluctuating oil prices (Sources: MarketScreener, Nasdaq). Facility Closures: The company is closing its Clinton, New Jersey facility, leading to the loss of hundreds of jobs. Most affected employees are being offered roles at the Houston headquarters (Source: ROI-NJ). Operational Strategy: The restructuring is part of ExxonMobil's broader strategy to consolidate its North American research and technology operations in Houston, which is expected to enhance research capabilities and drive long-term growth (Source: ROI-NJ).

ExxonMobil provides RSUs that vest over time, offering employees shares upon vesting. They also grant stock options, allowing employees to buy shares at a set price.

ExxonMobil offers a comprehensive benefits package that addresses a wide range of employee needs. For 2023, the company continued to provide robust health insurance options, including various medical, dental, and vision plans. These plans offer extensive coverage for preventive care, major dental services, and comprehensive vision care, including allowances for lenses and frames or contact lenses. Notably, the medical plans also cover telemedicine services, second opinion services, and enhanced fertility benefits. This reflects ExxonMobil's commitment to ensuring its employees have access to high-quality healthcare options that cater to their specific needs. In 2024, ExxonMobil has introduced several enhancements to its benefits offerings. The Employee Health Advisory Program provides professional counseling services for mental health issues, including anxiety, depression, and family conflicts, in a confidential environment. Additionally, the company continues to support employees through a pre-tax spending plan, allowing them to make tax-free contributions to cover eligible health care and dependent care expenses. These benefits are particularly relevant in today's economic and political climate, where managing healthcare costs and ensuring mental well-being are critical. ExxonMobil's focus on comprehensive and flexible healthcare benefits underscores its commitment to supporting the overall well-being of its employees.

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For more information you can reach the plan administrator for ExxonMobil at p.o .box 64111 Spring, TX 77387-4111; or by calling them at 832-624-6731.

https://corporate.exxonmobil.com/documents/pension-plan-2022.pdf - Page 5, https://corporate.exxonmobil.com/documents/pension-plan-2023.pdf - Page 12, https://corporate.exxonmobil.com/documents/pension-plan-2024.pdf - Page 15, https://corporate.exxonmobil.com/documents/401k-plan-2022.pdf - Page 8, https://corporate.exxonmobil.com/documents/401k-plan-2023.pdf - Page 22, https://corporate.exxonmobil.com/documents/401k-plan-2024.pdf - Page 28, https://corporate.exxonmobil.com/documents/rsu-plan-2022.pdf - Page 20, https://corporate.exxonmobil.com/documents/rsu-plan-2023.pdf - Page 14, https://corporate.exxonmobil.com/documents/rsu-plan-2024.pdf - Page 17, https://corporate.exxonmobil.com/documents/healthcare-plan-2022.pdf - Page 23