'ConocoPhillips employees can benefit from working with tax and legal professionals to revisit their 2025–2026 charitable giving timelines, as aligning these decisions with your broader financial picture can help you stay organized and make informed choices.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
Healthcare Provider Update: Healthcare Provider for ConocoPhillips ConocoPhillips provides its employees with access to various healthcare plans through third-party providers, primarily offering services via large insurers such as Blue Cross Blue Shield and UnitedHealthcare. These plans typically include comprehensive medical, vision, and dental coverage tailored to meet the diverse needs of its workforce. Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, ConocoPhillips employees can expect significant premium hikes in 2026, driven by a perfect storm of factors impacting the Affordable Care Act (ACA) marketplace. With anticipated increases exceeding 60% in some states and the potential expiration of federal premium subsidies, many employees could face out-of-pocket costs soaring by up to 75%, compounding the financial pressure. The ongoing upward trend in medical costs, coupled with employers' shifts in cost-sharing strategies, may further challenge employees as they navigate rising healthcare expenses. Planning ahead and understanding these dynamics is crucial for effective budgeting and healthcare management in the coming years. Click here to learn more
'For ConocoPhillips employees, thoughtful timing of 2025–2026 charitable gifts can influence your long-term retirement strategy, making it important to consider your broader financial plan when making these choices.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How the 2025–2026 rule changes may affect the tax benefits of your charitable gifts.
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The different charitable deduction rules for standard deduction filers versus itemizers.
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Strategies for timing your giving as a long-time ConocoPhillips employee or retiree.
2025–2026 Charitable Giving: How New Regulations May Affect Your Tax Plan
By Wealth Enhancement's Kevin Land, CFP® and Wesley Boudreaux
Giving to charities at the end of the year has long been a December custom for many households, including long-time employees and retirees from ConocoPhillips. However, the One Big Beautiful Bill Act has changed how charitable deductions work, with substantial updates taking effect in 2025 and 2026. As a result, the familiar “give by December 31” rule may not be the most tax-efficient approach anymore.
The law essentially establishes two different profiles of charitable donors starting in 2026:
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1. Filers who take the standard deduction.
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2. Filers who itemize deductions.
Depending on which group you belong to, the timing of your charitable contributions can lead to very different tax outcomes, which is especially important if most of your income and benefits come from years of work with ConocoPhillips.
Below, we describe:
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1. Who stands to gain from postponing some gifts until 2026.
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2. Who stands to gain from increasing donations before or during 2025.
Group 1: Standard Deduction Filers
Why some people might prefer to wait and donate in 2026
Instead of itemizing, around 90% of Americans take the standard deduction, 1 and many ConocoPhillips employees and retirees may fall into this category. Under the current 2025 rules, standard deduction filers generally do not receive any direct tax benefit from charitable gifts unless they itemize.
In 2026, that will change. Specifically, a new above-the-line charitable deduction will be available to standard deduction filers beginning in the 2026 tax year: 2
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- Up to $1,000 for single filers
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- Up to $2,000 for married couples filing jointly
Key characteristics—written into the law:
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- You do not need to itemize to claim this deduction.
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- Only monetary donations given to approved public charities are covered.
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- This deduction does not apply to supporting organizations or donor-advised funds.
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- Non-cash gifts such as household goods, appreciated stock, and cryptocurrency are not eligible.
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- The dollar limits are not indexed for inflation.
Real-world impact
In 2025, a cash donation made by a standard deduction filer is unlikely to produce any tax benefit unless that filer itemizes. If the same donor waits and gives in 2026, they may be able to deduct up to $1,000 or $2,000, depending on filing status.
For instance:
Let’s say you:
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- Are married and filing jointly
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- Typically donate $2,000 per year
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- Expect to take the standard deduction in both 2025 and 2026
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- Are in the 22% federal tax bracket
If you donate $2,000 in December 2025, you still take the standard deduction and do not gain any additional federal income tax savings from that gift.
If you instead donate $2,000 in January 2026, you can use the new $2,000 above-the-line deduction, which reduces your federal income tax by:
$2,000 × 22% = $440
Rules for documentation
Donors who give $250 or more in a single donation must obtain written confirmation stating that no goods or services were received in return for the contribution.
Who might use the standard deduction
While the standard deduction is available to all taxpayers, it may be used more often by:
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- Retirees with relatively limited deductible expenses
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- Younger individuals without many itemizable costs
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- Higher earners who have few deductions left to itemize (for example, capped SALT deductions)
For these donors, including many who spent their careers at ConocoPhillips, delaying certain cash gifts until early 2026 may turn previously non-deductible contributions into tax-efficient charitable giving.
Group 2: Itemizers
Reasons for wanting to accelerate gifts into 2025
For those who currently itemize, 2025 may be the final year before new deduction restrictions apply, so timing could matter for long-time professionals whose pay and benefits have grown over many years at ConocoPhillips.
What changes in 2026?
New charitable “floor” of 0.5% of AGI
Starting in 2026, charitable contributions are only deductible to the extent they exceed 0.5% of adjusted gross income (AGI). 3
For example:
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AGI: $300,000
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0.5% floor: $1,500
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Only the portion of your charitable contributions above $1,500 is deductible.
The 60% AGI cap on cash contributions remains
Itemizers can generally deduct up to 60% of AGI in cash contributions to qualifying public charities. 3 Any contributions above this limit may be carried forward for up to five years. This cap applies in addition to the new 0.5% floor starting in 2026.
Example for a higher-income itemizer:
Let’s say you:
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- Have AGI of $500,000
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- Are in the 35% federal tax bracket
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- Typically donate $25,000 per year
In 2025, before the new floor applies:
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- Subject to the usual AGI limits, you may be able to deduct nearly the full $25,000.
In 2026:
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- 0.5% of AGI = $2,500
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- Only contributions above $2,500 are deductible
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- Of your $25,000 in gifts, only $22,500 may be deductible
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- Losing a $2,500 deduction at a 35% tax rate may increase your federal income tax by $875
This difference can be especially important for donor-advised fund strategies or large gifts that ConocoPhillips professionals may plan as part of a broader legacy or estate plan.
Who might itemize
Usually, itemizers have:
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- AGI above the national average
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- High state and local taxes
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- Deductible expenses such as meaningful mortgage interest
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- Long-term charitable goals and multi-year giving plans
For these individuals, accelerating larger gifts in 2025 may result in a more favorable deduction position than waiting until 2026.
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Which Group Do You Belong To?
Delaying charitable giving until 2026 might be worth considering if:
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- You typically use the standard deduction
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- You give $1,000 to $2,000 or more to charities each year
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- You do not expect to itemize in 2025
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- You could shift a cash gift from December 2025 to January 2026 and potentially use the new above-the-line deduction
Giving before year-end 2025 might be more appealing if:
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- You will itemize in 2025, or already know you will have substantial itemized deductions
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- You intend to make sizable, flexible charitable gifts (for example, to a major institution or to a donor-advised fund)
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- The new 0.5% AGI floor in 2026 would reduce the amount you can deduct
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- Frontloading your giving in 2025 allows you to keep more of your charitable deduction under the current rules
How We Help Clients Make These Decisions
At Wealth Enhancement, when we review charitable planning for employees and retirees from large companies such as ConocoPhillips, we consider:
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- Income tax planning under the One Big Beautiful Bill Act
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- Health care and long-term care needs
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- Multigenerational strategies and estate planning
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- Business, stock option, or liquidity events that influence annual income
We help families:
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- Evaluate the likelihood that they will itemize in both 2025 and 2026
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- Set charitable giving goals over a three- to ten-year period
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- Compare donating in 2025 versus shifting gifts into 2026
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- Coordinate planning with estate planning attorneys and certified public accountants
How The Retirement Group Can Help ConocoPhillips Employees
The Retirement Group can walk through the numbers with you and design a charitable giving approach that fits within your broader retirement strategy if you are unsure whether your 2025–2026 charitable plan should involve delaying or accelerating gifts as a current or former employee of ConocoPhillips.
Call (800) 900-5867 to discuss how your charitable plans fit alongside your pension, 401(k), and other retirement benefits.
Next Steps
Before you write your next year-end charitable check:
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- Confirm whether you expect to itemize or take the standard deduction.
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- Review how the upcoming 2026 rules may affect your deductions.
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- Consider whether shifting gifts into 2025 or 2026 could improve your overall tax outcome.
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Reach out to Wesley Boudreaux or Kevin Landis, CFP®, at Wealth Enhancement, and consider coordinating with The Retirement Group to determine which path best aligns with your goals as a long-term employee or retiree from ConocoPhillips.
Sources:
1. Forbes Advisor. ' Standard Deductions For 2024-2025 Tax Returns And Extra Benefits For People 65+ ,' by Taylor Tepper. Oct. 8, 2025.
2. “One Big Beautiful Bill (OBBB): Impact on Charitable Giving.”
Fidelity Charitable
, 2025,
https://www.fidelitycharitable.org/articles/obbb-tax-reform.html
.
3. “Navigating Charitable Giving in the Wake of New Tax Reform.”
National Philanthropic Trust
, 30 July 2025,
https://www.nptrust.org/philanthropic-resources/philanthropist/navigating-charitable-giving-in-the-wake-of-new-tax-reform/
.
Other Resources:
1. “New Limitations on Charitable Deductions Take Effect in 2026.”
Greenberg Traurig
, 28 Oct. 2025,
https://www.gtlaw.com/en/insights/2025/10/new-limitations-on-charitable-deductions-take-effect-in-2026
2. “The OBBBA Clock Is Ticking: Why 2025 Might be the Year to Act for Maximum Charitable Deductions.”
Vanilla
, 28 Oct. 2025,
https://www.justvanilla.com/blog/obbba-year-end-charitable-planning-2026
.
3. “Charitable Organizations: Substantiation and Disclosure Requirements.”
IRS
, 30 Sept. 2025,
https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-organizations-substantiation-and-disclosure-requirements
.
How does the retirement process at ConocoPhillips provide guidance to employees in selecting the most beneficial form of payment? In what ways can employees utilize available resources to maximize their understanding of the pension options offered by ConocoPhillips?
The retirement process at ConocoPhillips provides employees with various resources to guide them in selecting the most beneficial form of pension payment. Employees can access the "How to Choose the Best Form of Payment" link on Your Benefits Resources™ (YBR) to learn more about their options and determine what works best for their financial situation(ConocoPhillips_Your_Ret…).
What steps must be completed by employees at ConocoPhillips to ensure they initiate their retirement process accurately and avoid any delays? How crucial is the timing of these steps in determining the Benefit Commencement Date (BCD)?
Employees at ConocoPhillips must initiate the retirement process by requesting their pension paperwork 60-90 days before their Benefit Commencement Date (BCD). Timing is crucial, as missing deadlines may delay the BCD and associated payments. Completing all steps on time ensures that the retirement process flows smoothly(ConocoPhillips_Your_Ret…).
Given the complexities associated with the lump-sum pension payment option at ConocoPhillips, what considerations should employees take into account before electing this choice? How does the current interest rate at the Benefit Commencement Date impact the lump-sum amount?
Before electing a lump-sum pension payment, ConocoPhillips employees should consider the current interest rate at their BCD, as it directly affects the lump-sum amount. A higher interest rate typically reduces the lump-sum payment, making timing and rate awareness critical(ConocoPhillips_Your_Ret…).
In what ways can ConocoPhillips employees ensure their Pension Election Authorization form is completed correctly to facilitate timely pension payments? What are the implications of not adhering to the required notarized consent for married participants?
Ensuring the correct completion of the Pension Election Authorization form is vital for timely pension payments. For married participants, notarized spousal consent is required, and failure to provide this could result in delays or issues with payment processing(ConocoPhillips_Your_Ret…).
How does choosing direct deposit for pension payments at ConocoPhillips streamline the retirement process for employees? What should employees know about setup and changes regarding direct deposit after initiating their pension benefits?
Choosing direct deposit for pension payments simplifies the process for employees at ConocoPhillips, as it enables automatic payments to their bank account. Employees can set up direct deposit during their retirement process or update it at a later time(ConocoPhillips_Your_Ret…).
For employees considering rolling over their lump-sum pension payment from ConocoPhillips, what procedures should they follow to ensure compliance with IRS regulations and to avoid tax penalties? How can effective planning influence the success of this rollover?
Employees electing to roll over their lump-sum pension payment must follow specific IRS regulations to avoid tax penalties. Effective planning, such as obtaining rollover paperwork and adhering to IRS rules, ensures compliance and smooth fund transfer(ConocoPhillips_Your_Ret…).
What resources does ConocoPhillips provide for employees to calculate and project their retirement income? How can these tools empower employees to make informed decisions regarding their future financial security?
ConocoPhillips provides employees with tools such as the "Project Retirement Income" feature on YBR, empowering them to calculate and project their retirement income. These resources help employees make informed decisions about their financial future(ConocoPhillips_Your_Ret…).
How do deadlines play a pivotal role in the benefits process for retiring employees at ConocoPhillips, and what specific dates must be adhered to in order to avoid payment delays? Can you provide examples of consequences resulting from missed deadlines?
Deadlines are critical in ConocoPhillips' retirement process, as missing them can delay pension payments. For example, requesting pension paperwork after the 15th of the month can delay the BCD by a month, affecting the pension payout date(ConocoPhillips_Your_Ret…).
What are the added advantages for employees at ConocoPhillips who actively seek assistance or information from the Benefits Center during their retirement planning? How can this proactive approach enhance their overall retirement experience?
Employees who seek assistance from the Benefits Center during their retirement planning benefit from personalized guidance. This proactive approach ensures that they fully understand their options and deadlines, enhancing their overall retirement experience(ConocoPhillips_Your_Ret…).
How can employees at ConocoPhillips contact the Benefits Center to receive personalized assistance in navigating their retirement options? What specific resources and support can they expect when reaching out for help?
ConocoPhillips employees can contact the Benefits Center by calling 800-622-5501 or accessing YBR online. The Benefits Center provides personalized assistance and guidance, helping employees navigate their pension options effectively(ConocoPhillips_Your_Ret…).
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
ConocoPhillips offers a defined benefit pension plan called the ConocoPhillips Retirement Plan, vesting employees after three years. Benefits are calculated based on final average salary and years of service. The ConocoPhillips Savings Plan (CPSP) is the company’s 401(k) plan, matching 6% of contributions and adding a discretionary 3% based on performance. The plan includes immediate 100% vesting and supports traditional and Roth contributions. [Source: ConocoPhillips Benefits Overview, 2022, p. 20]
Merger and Layoffs: ConocoPhillips is set to merge with Marathon Oil in a deal worth over $22 billion, which will likely lead to at least 500 job cuts. The merger aims to achieve $500 million in cost savings and increased operational efficiency, though it may result in localized negative impacts, particularly in Houston (Sources: KTRH, Yahoo News). Financial Performance: ConocoPhillips reported strong financial results for the first half of 2024, with a production increase and substantial cash flow. The company generated $10.2 billion in cash from operations (Source: ConocoPhillips). Operational Strategy: The merger is part of a broader consolidation trend in the oil and gas industry, aiming to enhance production and shareholder value (Source: KTRH).
ConocoPhillips grants stock options and RSUs to incentivize employees. Stock options allow employees to buy shares at a set price after vesting, while RSUs are awarded with vesting conditions such as tenure or performance. In 2022, ConocoPhillips focused on RSUs to retain talent and align with strategic goals. This continued in 2023 and 2024, with broader RSU programs and performance-linked stock options. Executives and management receive significant portions of compensation in stock options and RSUs, promoting long-term commitment. [Source: ConocoPhillips Annual Reports 2022-2024, p. 91]
ConocoPhillips made notable changes to its healthcare benefits in 2022, including expanded preventive care and chronic disease management services. The company introduced new telehealth options and wellness programs by 2023. In 2024, ConocoPhillips continued to focus on comprehensive employee healthcare and integrating innovative solutions. The strategy aimed to support overall health with enhanced mental health resources and preventive care services. ConocoPhillips’ updates reflected a commitment to maintaining robust benefits and addressing employee needs effectively.
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