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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
'ConocoPhillips employees can benefit from understanding how progressive tax brackets influence long-term income planning,' explains Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement. 'That's why I encourage individuals to review these rules carefully and consult a qualified tax professional for guidance tailored to their situation.'
'ConocoPhillips employees can gain clarity in their retirement planning by recognizing how federal tax brackets shape income decisions,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement. 'I encourage individuals to work with a qualified tax professional to evaluate how these rules may apply to their circumstances.'
In this article, we will discuss:
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How federal tax brackets work and why they matter.
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How taxable income is calculated for retirement planning.
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Strategies that may help reduce taxable income.
Navigating taxes can feel more manageable when you understand how your income is allocated to various federal tax bands. Income tax is calculated by the IRS using seven brackets that adjust annually for inflation. You do not pay the same rate on every dollar you earn because income is taxed progressively. Instead, your taxable income is divided into ranges, each taxed at its own rate. ConocoPhillips employees can benefit from understanding how their tax brackets may change as they prepare for retirement income decisions.
Below are the IRS’s official 2025 and 2026 bracket tables, along with an explanation of how federal brackets work. The Retirement Group can help review how these rules may influence your long-term income strategy. You can reach us at (800) 900-5867 .
How Federal Tax Brackets Work
The seven federal income tax brackets in the United States are 10%, 12%, 22%, 24%, 32%, 35%, and 37% .
This progressive structure means that each additional portion of income is taxed according to the next bracket as taxable income increases, which may be important for ConocoPhillips employees reviewing future retirement income.
Your marginal tax rate applies to the last dollar of taxable income you earn. Your effective tax rate represents the overall percentage of income paid toward federal tax after all brackets are applied.
Your tax brackets also depend on the filing status you choose:
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- Single
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- Married filing jointly
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- Married filing separately
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- Head of household (single with a qualifying dependent)
The IRS adjusts these brackets every year to account for inflation.
How Your Taxable Income Is Calculated
To determine taxable income, start by adding all sources of taxable income, such as interest, qualifying pre-2019 alimony, tips, bonuses, and both employment and freelance earnings.
Next, subtract items already included on your W-2, such as contributions to a health savings account (HSA) or retirement plan contributions through your employer (401(k)).
Then subtract either your itemized deductions or the standard deduction—whichever applies. The remaining amount is your taxable income.
A Federal Effective Tax Rate Example
If a married couple with $150,000 in total income files jointly in 2025 and takes the standard deduction of $31,500 , their taxable income becomes $118,500 . Their federal tax calculation would look like this:
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- 10% on the first $23,850 → $2,385
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- 12% on $23,851 to $96,950 → $8,772
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- 22% on the remaining amount up to $118,500 → $4,741
- Total federal income tax: $15,898
- Effective tax rate: approximately 10.6%
(All bracket values sourced from IRS inflation adjustment notices above.)
Possible Strategies to Lower Taxable Income
These approaches may help reduce taxable income and potentially push you into a lower tax bracket:
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- Contributing to traditional IRAs or employer retirement plans
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- Adding funds to an HSA if enrolled in a qualifying high-deductible health plan
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- Using tax-loss harvesting in taxable brokerage accounts
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- Considering the timing of controlled income, such as bonuses or freelance payments
Starting in 2026, taxpayers who do not itemize may deduct up to $1,000 (single filers) or $2,000 (married filing jointly) for eligible cash charitable contributions.
Do You Have Questions About How Taxes Influence Retirement?
Federal tax brackets play a key role in retirement planning, especially when reviewing withdrawal timing, Social Security decisions, and income sources. ConocoPhillips employees can explore how tax rules fit into their broader retirement planning with guidance from The Retirement Group .
For personalized retirement discussions, call us at (800) 900-5867 .
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Sources:
1. Internal Revenue Service.
Revenue Procedure 2024-40.
22 Oct. 2024,
https://www.irs.gov/pub/irs-drop/rp-24-40.pdf
. Accessed 8 Dec. 2025.
2. Tax Policy Center.
“How Do Federal Income Tax Rates Work?”
Tax Policy Center Briefing Book
, Jan. 2024,
https://www.taxpolicycenter.org/briefing-book/how-do-federal-income-tax-rates-work
. Accessed 8 Dec. 2025.
3. Financial Industry Regulatory Authority (FINRA).
“Retirement Accounts.”
FINRA for Investors
,
https://www.finra.org/investors/investing/investment-accounts/retirement-accounts
. Accessed 8 Dec. 2025.
4. Adams, Hayden.
“Using Tax Brackets to Manage Your Taxable Income.”
Charles Schwab
, 12 Feb. 2025,
https://www.schwab.com/learn/story/using-tax-brackets-to-manage-your-taxable-income
. Accessed 8 Dec. 2025.
5. Vanguard.
“Year-End Tax-Savings Tips.”
Vanguard Investor Resources & Education
, 26 Aug. 2025,
https://investor.vanguard.com/investor-resources-education/article/year-end-tax-tips
. Accessed 8 Dec. 2025.
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…).
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