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

Unlocking Devon Energy's Wealth: 6 Tax Reduction Strategies for Thoughtful Gifting

Healthcare Provider Update: Healthcare Provider for Devon Energy: Devon Energy Corporation partners with Aetna as its healthcare provider. Aetna offers a range of health plans and services to support the wellness needs of Devon Energy employees and their families. Potential Healthcare Cost Increases in 2026: As healthcare costs continue to rise, Devon Energy could see significant increases in employee healthcare expenses in 2026, attributed in part to anticipated premium hikes associated with the Affordable Care Act (ACA). With some states preparing for rate increases of up to 66% and the expiration of enhanced federal premium subsidies, employees may face out-of-pocket premium escalations of over 75%. The confluence of rising medical costs and changes in healthcare policy may necessitate adjustments in how both employers and employees plan for their health coverage, prompting a careful re-evaluation of benefit strategies in the coming year. Click here to learn more

First strategy: Utilize the Annual Gift Tax Exemption

A pivotal component of estate planning involves leveraging the annual gift tax exemption. As of 2023, any individual may gift up to $17,000 tax-free to numerous recipients, and married couples can gift up to $34,000. With the IRS adjusting these figures to $18,000 and $36,000 respectively in 2024, maximizing this exemption allows Devon Energy employees to significantly reduce their taxable estate, thus decreasing future tax liabilities.

Second strategy: Optimize the Lifetime Gift Tax Exemption

The lifetime gift tax exemption denotes the total amount one can distribute over their lifetime without incurring gift taxes, set to increase from $12.92 million in 2023 to $13.61 million in 2024. This exemption proves particularly beneficial for transferring high-appreciation assets like stocks or real estate. For Devon Energy employees, transferring these assets before they appreciate ensures that any growth occurs outside of your estate, enhancing tax efficiency in wealth transfers.

Third Strategy: Utilize Medical and Educational Exclusions

Beyond the yearly gift tax exclusion and the lifetime exemption, payments made directly to medical institutions for healthcare or educational institutions for tuition are not subject to these taxes. It's critical for Devon Energy employees to note that this strategy does not cover costs like room and board or books, but it remains crucial for supporting loved ones' education and healthcare without increasing your tax burden.

Fourth Strategy: Establish Trusts for Asset Distribution

Trusts serve as versatile tools in estate planning, allowing for controlled asset distribution. Devon Energy employees can benefit from setting up an irrevocable life insurance trust to shield life insurance proceeds from estate taxes. Similarly, a Grantor Retained Annuity Trust facilitates the transfer of appreciating assets while retaining a fixed annuity, thus bypassing gift taxes.

Fifth Strategy: Engage in Charitable Giving

Incorporating charitable donations into your estate plan can yield significant tax advantages. Methods like donor-advised funds offer Devon Energy employees immediate tax deductions while facilitating phased charitable contributions. Directly donating high-value assets to charities can also circumvent the capital gains taxes that would accrue upon selling these assets.

Sixth Strategy: Plan the Timing and Frequency of Gifts

The strategic impact and tax implications of gifting can be profoundly influenced by their timing and frequency. For Devon Energy employees, it's imperative to consider market fluctuations, changes in tax legislation, and significant personal milestones when planning gifts. Regular gifting aligned with the annual exclusion limit gradually reduces your estate and enhances long-term tax benefits.

In summary

Articles you may find interesting:

Strategic gifting at Devon Energy is a sophisticated blend of generosity, savvy financial planning, and foresight. It's advisable for employees to consult with estate planning lawyers or financial advisors to tailor these strategies to personal financial goals and plan effective wealth transfer across generations.

The strategies outlined serve as a foundation for tax-efficient wealth management and bolster financial security for future generations. By adopting these methods, Devon Energy employees can minimize tax impacts on wealth transfer while safeguarding their financial legacy.

One often overlooked tactic is the Qualifying Charitable Distribution (QCD), which allows those aged 70½ or older to donate up to $100,000 annually directly from their IRA to a qualifying charity. This not only satisfies the required minimum distribution (RMD) but also excludes the donation from taxable income, proving invaluable for retirees at Devon Energy seeking to reduce their tax obligations and support charitable causes. This strategy aligns perfectly with strategic gifting, offering tax relief and philanthropic satisfaction (IRS.gov, 2023).

Like a seasoned gardener tending a valuable garden, strategic gifting is akin to astute financial planning. Just as a gardener employs a variety of tools and techniques—such as fertilizing, pruning, and crop rotation to maximize growth and yield—the financial landscape is safeguarded and even enhanced through strategies like lifetime exemptions, the annual gift tax exclusion, and charitable giving. Each strategy is chosen for its ability to bolster the overall health and beauty of the garden, ensuring that the estate flourishes vigorously for the enjoyment of generations to come.

Disclosure: Not tax advice. Discuss your specific circumstances with a qualified tax professional.

What is the primary purpose of the 401(k) Savings Plan at Devon Energy?

The primary purpose of the 401(k) Savings Plan at Devon Energy is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax or after-tax basis.

How can employees at Devon Energy enroll in the 401(k) Savings Plan?

Employees at Devon Energy can enroll in the 401(k) Savings Plan by logging into the employee portal and completing the online enrollment process during the designated enrollment period.

What types of contributions can employees make to the Devon Energy 401(k) Savings Plan?

Employees at Devon Energy can make pre-tax contributions, Roth (after-tax) contributions, and, if eligible, catch-up contributions to the 401(k) Savings Plan.

Does Devon Energy offer any matching contributions to the 401(k) Savings Plan?

Yes, Devon Energy offers a matching contribution to the 401(k) Savings Plan, which is designed to encourage employees to save for retirement.

What is the vesting schedule for employer contributions in the Devon Energy 401(k) Savings Plan?

The vesting schedule for employer contributions in the Devon Energy 401(k) Savings Plan typically follows a graded vesting schedule, meaning employees gradually earn ownership of the company's contributions over time.

Are there any fees associated with the Devon Energy 401(k) Savings Plan?

Yes, there may be administrative fees associated with the Devon Energy 401(k) Savings Plan, which are disclosed in the plan documents provided to employees.

Can employees at Devon Energy take loans against their 401(k) Savings Plan balance?

Yes, employees at Devon Energy may be able to take loans against their 401(k) Savings Plan balance, subject to the plan's terms and conditions.

What investment options are available in the Devon Energy 401(k) Savings Plan?

The Devon Energy 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their retirement savings.

How often can employees change their contribution amounts to the Devon Energy 401(k) Savings Plan?

Employees at Devon Energy can change their contribution amounts to the 401(k) Savings Plan at any time, subject to the plan's guidelines.

What is the minimum age requirement to participate in the Devon Energy 401(k) Savings Plan?

The minimum age requirement to participate in the Devon Energy 401(k) Savings Plan is typically 21 years old, but employees should refer to the plan documents for specific details.

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

Devon Energy Pension Plan Devon Energy does not specifically offer a traditional defined benefit pension plan but provides retirement benefits through their 401(k) plan, which includes additional company contributions. The company contributes a percentage of the employee's eligible compensation to their 401(k) account each quarter, regardless of whether the employee contributes. This contribution is designed to supplement the employees' savings, ensuring they have a robust retirement fund. Devon Energy 401(k) Plan The Devon Energy 401(k) Incentive Savings Plan allows employees to contribute 1% to 50% of their eligible pay on a pre-tax basis, Roth after-tax basis, or a combination of both, up to the IRS limits. Employees aged 50 or older can make additional catch-up contributions. Devon Energy matches 100% of the employee contributions up to 6%, based on years of service, making it a significant part of the retirement savings strategy for employees.

Devon Energy announced the layoff of approximately 300 employees, representing around 9% of its workforce, as part of a broader effort to reduce general and administrative costs by $150 million to $200 million by 2024. This restructuring follows a challenging period for the energy sector, despite recent increases in oil prices. The layoffs are part of a strategy to streamline operations, focus on core assets, and enhance the company's financial stability. Additionally, Devon Energy has continued its disciplined cash-return business model, focusing on generating free cash flow and returning capital to shareholders. They have also announced preliminary plans for 2024, including the continuation of their fixed-plus-variable dividend strategy, which has been a key component of their financial approach since their merger with WPX Energy.

Stock Options and RSUs: Devon Energy offers a combination of stock options and RSUs to its employees under the Long-Term Incentive Plan (LTIP). This plan has been in place and was amended as of 2024. Employees eligible for these awards typically include executive officers, directors, and other key employees within the company. The awards are designed to vest over a period, usually tied to continued employment and performance metrics. RSUs (Restricted Stock Units) at Devon Energy are granted as part of the LTIP and typically vest over a multi-year period. The RSUs represent a promise to deliver shares of Devon Energy stock to employees upon meeting specific vesting conditions. For example, RSUs granted in 2022, 2023, and 2024 usually vest after three years, encouraging employees to stay with the company long-term. These RSUs do not require employees to purchase the shares; instead, they are given shares once the units vest.

Devon Energy offers a comprehensive set of health benefits to its employees, focusing on ensuring both physical and mental well-being. For the years 2022, 2023, and 2024, the company's health benefits package includes medical, dental, and vision coverage, all starting from the first day of employment for regular full-time, part-time employees, and interns. Healthcare-Related Terms and Acronyms: PPO (Preferred Provider Organization): Employees can choose between PPO and Premier plans, with differences in deductible amounts and coverage percentages for services like preventive care and major services. UBreathe Program: A tobacco cessation program that helps employees avoid a tobacco surcharge on their medical insurance if they meet specific requirements. VSP (Vision Service Plan): Administers the vision coverage, offering annual exams and allowances for lenses and frames. Recent Employee Healthcare News: Devon Energy has placed significant emphasis on wellness through various programs and facilities. For example, "The Well," a wellness center at their Oklahoma City headquarters, provides access to state-of-the-art fitness equipment, group classes, and wellness resources. The company also offers a near-site primary care clinic, "The Doc," which provides advanced medical care, behavioral health services, and physical therapy. Additionally, Devon Energy's commitment to employee wellness is evident in their support for flexible spending accounts and comprehensive dental and vision coverage options, designed to cater to a wide range of employee needs

Additional Articles

Check Out Articles for Devon Energy employees

For more information you can reach the plan administrator for Devon Energy at 333 W Sheridan Ave Oklahoma City, OK 73102; or by calling them at (405) 235-3611.

https://www.devonenergy.com/careers/compensation-benefits https://www.thelayoff.com/t/1ryvduc8 https://contracts.justia.com/companies/devon-energy-393/contract/1292725/ https://www.energyjobshop.com/news/devon-energy-lay-off-300-employees/ https://2956401.fs1.hubspotusercontent-na1.net/hubfs/2956401/SLC/Updated%20Guides%208.30.23/SLC_2023_2024_OE_Benefit_Guide_Group_A_Kaiser_FINAL_UPDATED.pdf https://participant.empower-retirement.com/participant/ https://www.pentegra.com/ https://dart.deloitte.com/USDART/ https://www.investopedia.com/