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

Discover How Devon Energy Employees Can Navigate Capital Gains Tax to Keep More of Their Hard-Earned Money

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

As Kevin Landis, a representative of The Retirement Group, a division of Wealth Enhancement Group said, “This article highlights the necessity of a comprehensive financial plan for early retirement, which could be particularly crucial for Devon Energy employees who want to get the most out of their post-career years.

Paul Bergeron from The Retirement Group, a division of Wealth Enhancement Group, points out that Jeremy Schneider’s approach to retirement is useful for Devon Energy employees who are planning to retire early.

In this article I will discuss:

1. Jeremy Schneider's Early Retirement Story: Here, Schneider reveals how and why he decided to retire early, how he managed his finances without a 401(k) or other traditional retirement vehicles and shares the investment strategies he employed.

2. Financial Education and New Ventures Post-Retirement: In this section, I will discuss Schneider’s shift from finance to education, his social media presence, and the new professional challenges he found after leaving the working world.

3. Maximizing Retirement Income and Minimizing Taxes: Here are some examples of the importance of investment planning, the use of HSAs, and taxes to ensure a secure and enjoyable retirement for Devon Energy employees.

Jeremy Schneider, who is 36 and sold his real estate website for $2 million, offers a meaningful example for Devon Energy employees interested in early retirement. Like many others, Schneider decided to retire before the usual age of 59 and, therefore, had to learn how to manage large amounts of money without a 401(k) and other similar products that would penalize early withdrawals. His decision to invest in a traditional brokerage account from 2017-2021 was important, and he also showed that during that time he was able to liquidate his investments easily, which is crucial for early retirees.

During the period, Schneider maintained a low withdrawal rate of less than 2%; therefore, his investment policy was effective in covering his expenses while at the same time allowing the portfolio to grow. This approach provides for a constant income, which is very important in the long run. His financial tactics also showed that consolidating investments into a single target date fund could have increased his earnings significantly, suggesting that while the method may be simpler it is also very effective and could be used to the advantage of Devon Energy employees contemplating the same financial planning.

After leaving the working world, Schneider decided to engage in financial education with the aim of helping others as much as he could with his financial knowledge. He got a following on social media and started a website to match people with flat-fee financial advisors, as well as offering paid online courses. This change is a good example of how retirement can become a new job and a way of development for a person, which can be interesting for the employees of the Devon Energy companies who are thinking about what to do after leaving work.

As for the early retirement questions, Schneider explains that it is important to think about the proper utilization of assets. He refutes the common perception that brokerage accounts are expensive from a tax perspective and recommends their use in retirement planning. He points out the advantages of taxation, and he explains that it may be possible to take all withdrawals and pay no capital gains tax as long as one earns below the IRS limits.

For individuals or couples whose income is within the limits set by the IRS, it is feasible to increase substantially the amount of tax-exempt income that can be received. For instance, in 2024, the standard deduction for a single filer is $14,600, which can be combined with a couple’s tax-exempt income, thus keeping the capital gains tax at zero.

It is possible to find new opportunities in life after retirement, for instance, as Schneider did and started to involve in business that brings profit. This active approach to retirement is in line with the financial independence concept, which is the ability to work or not work and still enjoy life without worrying about the financial status, which is a concept that can be interesting to the Devon Energy employees in their retirement.

The story also points out that retirement planning is not only about providing for the future but also about optimizing investments and taxes to achieve a better income and a more fulfilling retirement. This may be quite helpful for Devon Energy employees who are approaching retirement and need some guidance on how to ensure a positive financial future and quality of life.

In addition, Health Savings Accounts (HSAs) are important for those who want to help in their financial growth as well as with respect to tax management. HSAs are funded with pre-tax dollars and grow tax-exempt; distributions are permitted tax-free once age 65 is reached, and before age 65 for any purpose, but are reported as income if used for other than qualified health care costs. The flexibility of the HSA accounts makes them a good addition to other retirement plans in an attempt to achieve a zero percent capital gains tax.

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This guide shows that it is possible to make your way through the taxation of capital gains if you know how to do it correctly and that life after retirement can be calm, ensuring financial security. These principles can be used by Devon Energy employees as they plan for a productive and enjoyable retirement.

Sources:

Moore, James, CFA. 'Retirement Insights.' Financial Analysts Journal, May 2023, 79, 2, 34-40.

Hernandez, Maria. 'Tax Strategies for Early Retirement.' Jan. 2024, Journal of Personal Finance, 22, 1, 15-21.

Chen, Albert. 'Navigating Health Savings Accounts Post-Retirement.' Hernandez, Maria. 'Tax Strategies for Early Retirement.' Healthcare Finance Review, Mar. 2024, 46, 3, 82-89.

Wang, Li. 'Financial Independence and Early Retirement.' Oct. 2023, Economic Studies Quarterly, 75, 4, 55-60.

Brooks, Eleanor. 'Investment Strategies for the Modern Retiree.' June 2023, Modern Retirement Monthly, 50, 6, 44-49.

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

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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.

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