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
In this article, we will discuss:
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Strategies to improve year-end tax planning, including retirement contributions, tax-loss harvesting, and Roth IRA conversions.
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Techniques to gain tax benefits through charitable donations, education credits, and effective income deferral.
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Essential considerations for managing required minimum distributions (RMDs) and using qualified charitable distributions (QCDs) to strengthen financial planning.
As the year draws to a close, proactive tax preparation is critical for ExxonMobil employees, particularly in light of potential tax increases post-2025 due to the expiration of the Tax Cuts and Jobs Act. Managing tax liabilities now could significantly reduce your tax burden for 2024 and improve your financial outcomes in the coming years. Here are 12 tax strategies to enhance your financial plan before year-end.
1. Increase Retirement Account Contributions
ExxonMobil employees can contribute to their IRA until April 15, 2025, for the 2024 fiscal year. Contributions to workplace retirement plans, such as 401(k)s, must be made by December 31, 2024. The annual limit for traditional and Roth contributions is $23,000, with an additional $7,500 for those aged 50 or older. Employees with high-deductible health plans can also consider contributions to Health Savings Accounts (HSAs) to lower taxable income. Unlike flexible spending accounts, HSAs allow funds to roll over annually, offering greater flexibility for future medical expenses.
2. Utilize Tax-Gain Harvesting
By selling underperforming investments, employees can offset gains and up to $3,000 of annual income through tax-loss harvesting. Be mindful of wash-sale rules, which prohibit repurchasing the same or substantially similar assets within 30 days. Cryptocurrencies currently remain exempt from these regulations, creating a unique planning opportunity.
3. Consider a Roth IRA Conversion
Converting a traditional IRA or employer plan to a Roth IRA incurs taxes upfront but offers tax-efficient growth and withdrawals, along with no RMDs. With potential tax increases after 2026, a conversion in 2024 may provide long-term advantages for ExxonMobil employees.
4. Assess the Benefits of Itemizing Deductions
For those with substantial deductible expenses, itemizing may yield greater benefits than the standard deduction ($29,200 for married couples and $14,600 for single filers in 2024). Eligible deductions include medical expenses, mortgage interest, state and local taxes, charitable donations, and disaster losses.
5. Explore Education Tax Credits
ExxonMobil employees can access the American Opportunity Tax Credit, which provides up to $2,500 annually for the first four years of higher education. Contributions to 529 plans may also qualify for state tax deductions, helping to improve education funding strategies.
6. Defer Income
Employees may benefit from deferring invoices or other income to the following year, particularly if higher taxes are anticipated in the near future.
7. Group Charitable Contributions
By combining multiple years of charitable donations into a single year, employees may exceed the standard deduction threshold, increasing tax benefits. Donor-advised funds allow for an upfront deduction while spreading contributions over several years.
8. Donate Appreciated Assets
Donating long-held appreciated assets enables employees to deduct the fair market value without incurring capital gains taxes, subject to a 30% AGI limitation.
9. Optimize Cash and Property Contributions
Cash and property donations are deductible up to 60% of AGI. Proper documentation is essential for large donations to meet IRS requirements.
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10. Leverage Annual Gift Tax Exclusions
Gifting up to $18,000 per recipient can reduce estate size and lower future inheritance taxes. This method facilitates wealth transfer without gift tax consequences.
11. Manage Required Minimum Distributions (RMDs)
Employees aged 73 or older must withdraw RMDs by December 31 to avoid penalties. Failure to do so can result in a penalty of up to 25% of the missed distribution amount.
12. Use Qualified Charitable Distributions (QCDs)
Individuals aged 70½ and older can direct up to $105,000 annually from an IRA to a charity. This amount satisfies RMD requirements and avoids taxable income.
Preparing for 2025 and Beyond
ExxonMobil employees should incorporate inflation adjustments and potential legislative changes into their long-term plans. Regularly reviewing tax strategies with a financial advisor ensures alignment with current laws and personal circumstances.
Social Security benefits can also significantly impact tax obligations. Claiming benefits at age 62 increases taxable income, while delaying until full retirement age or beyond results in higher payments and lower tax exposure. Delaying benefits until age 70 can yield an annual increase of approximately 8% (Source: Social Security Administration ).
Conclusion
Planning for taxes is like preparing a gourmet meal. Each step, from contributing to retirement accounts to strategically timing charitable donations, adds a layer of financial stability. By implementing these strategies, ExxonMobil employees can make informed decisions to improve financial outcomes and prepare for a rewarding retirement.
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…).
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