/General/General%204.png?width=1280&height=853&name=General%204.png)
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
For ExxonMobil employees nearing retirement, tools like spousal IRAs and backdoor Roth conversions can increase retirement savings flexibility - but planning ahead can prevent tax surprises - said Wesley Boudreaux, of The Retirement Group, a division of Wealth Enhancement Group.
'ExxonMobil professionals should optimize their IRA contributions now that the Estate Tax Exemptions are changing,' said Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
1. Contribution limits and income thresholds for IRAs.
2. Spousal IRA benefits & strategies.
3. Top tax considerations and planning for high earners: the pro-rata rule and Roth conversions.
Individual Retirement Accounts are a major component of retirement planning and provide many tax advantages. But understanding IRA contributions in the context of income limits helps ExxonMobil professionals plan for retirement.
Understanding IRA Contribution Limits
For those planning a retirement, IRA contributions are capped annually. Such limits are recalculated periodically for inflation and other economic factors. For example, in 2023 the standard IRA contribution limit is USD 6,500 - up from USD 6,000 for those 50 and older - respectively. These limits will rise to USD 7,000 and USD 8,000 in 2024.
IRA Income Thresholds for Contributions.
Whether you can contribute directly to a Roth IRA or receive a tax deduction on a traditional IRA contribution is determined by your income. Those thresholds may impose restrictions on high earners. For example, by 2023, a married couple filing jointly must earn less than USD 218,000 a year for full Roth IRA contributions and be phased out with income greater than USD 228,000.
But fewer know that there's also an income floor for IRA contributions. Your earned income must at least match your IRA contribution. Especially true for those with lower earned income due to retirement or reduced hours.
The Spousal IRA: An Advantage for Couples
The spousal IRA provision is useful for married couples when one partner has little or no earned income. This rule doubles the IRA contribution potential of a spouse with enough earned income to contribute to an IRA in the name of the non-earning spouse. This is a plus for couples where one partner is retired or unemployed.
High-Income Couples: Navigating Roth IRA Contributions
High earners may be limited in contributing directly to a Roth IRA or receiving tax deductions for traditional IRA contributions. Here is where a spousal backdoor Roth IRA comes in handy. They let top earners go around those limits by first contributing to a non-deductible traditional IRA and then converting it to a Roth IRA.
Pro-Rata Rule and Tax Considerations for ExxonMobil Professionals.
Know the pro-rata rule of the IRS for backdoor Roth IRA conversions. The proportion of pre-tax versus after-tax money in your IRAs may cause a tax bill during the conversion process. Know the tax consequences of a spousal backdoor Roth IRA and plan for them accordingly.
Evaluate whether additional savings are needed.
Although maximizing IRA contributions can be a great strategy, you still should consider whether additional savings are needed. When you and your spouse contribute to employer-sponsored retirement plans, additional IRA contributions may outweigh other financial goals and needs.
Diversifying Retirement Income
Spousal IRAs help diversify your retirement income sources. For instance, if most of your retirement savings are currently invested in pre-tax accounts like 401(k)s, contributing to a Roth IRA can earn you tax-free income in retirement while giving you more freedom with your retirement planning.
Spousal IRA Contributions - Making the Decision.
If one partner has little earned income, a spousal IRA may be a way to increase retirement savings. Particularly if traditional IRA deductions are not possible or if direct Roth contributions are capped by income. In such situations, the backdoor Roth method is an option.
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Using IRA contributions wisely, including understanding spousal IRAs and backdoor Roth IRAs, is critical to retirement savings. And this is particularly true for people transitioning to retirement or who are already retired - matching savings to present income levels and goals for the future. Keep up with these retirement savings tools and review your finances often.
For ExxonMobil professionals over age 60 and especially those with substantial assets, knowing the current Estate Tax Landscape is critical. The federal estate tax exemption stands at a record USD 12,920,000 per person - or nearly USD 26 million for a couple - as of 2023. That exemption will be halved by 2026 unless Congress intervenes. So big estates should take advantage of this exemption as soon as possible. That might mean completely gifting or creating irrevocable trusts that use up the existing exemption while reducing future estate tax liability.
A yacht sailing through shifting tides and currents is similar to handling IRA contributions and estate taxes. Like a sailor who knows the sea to navigate, ExxonMobil professionals approaching retirement or retired must understand IRA limits, spousal IRA rules, and how estate tax exemptions are changing. Much like how the tides change direction on a yacht, changing tax laws and IRA regulations can change the direction of one's course toward a secure and prosperous ExxonMobil retirement.
Sources:
1. Saunders, Laura. 'Your Guide to Taxes for Retirees and Retirement Accounts.' The Wall Street Journal , 20 Feb. 2025, pp. 1-3.
2. 'Retirement Topics - IRA Contribution Limits.' Internal Revenue Service , Aug. 2024, www.irs.gov/retirement-plans/plan-participant-employee/ira-contribution-limits .
3. Chen, James. 'Backdoor Roth IRA: Advantages and Tax Implications Explained.' Investopedia , 15 May 2015, www.investopedia.com/articles/retirement/051515/backdoor-roth-ira-advantages-and-tax-implications-explained.asp .
4. Lake, Rebecca. 'A Guide to the Pro-Rata Rule and Roth IRAs.' SmartAsset , Nov. 2024, www.smartasset.com/retirement/guide-to-the-pro-rata-rule-and-roth-iras .
5. Smith, John. 'The Spousal IRA.' The FI Tax Guy , Jan. 2024, www.fitaxguy.com/spousal-ira .
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…).
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
.webp?width=300&height=200&name=office-builing-main-lobby%20(27).webp)
-2.png)
.webp)