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7 IRA Strategies and Tax Rules Halliburton Employees May Be Overlooking

“Halliburton employees who take the time to understand evolving IRA contribution limits, spousal opportunities, and conversion rules are often better positioned to coordinate personal savings with workplace retirement benefits. I encourage individuals to review these strategies within the context of their broader retirement and estate planning goals while consulting a qualified tax advisor for guidance tailored to their specific situation.” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

“Halliburton employees who carefully evaluate IRA contribution limits, spousal strategies, and conversion considerations can create stronger alignment between their personal savings and employer-sponsored benefits. I encourage individuals to view these IRA decisions as part of a coordinated retirement and estate planning framework while consulting a qualified tax professional for guidance specific to their circumstances.” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Key IRA contribution rules and annual limits for 2026.
Strategic considerations such as spousal IRAs, SEP IRAs, and Roth conversions.
Special IRA situations involving alimony, children with earned income, and income phase-outs.

Seven Frequently Ignored Facts About IRAs for Halliburton Employees

Many Halliburton employees begin thinking about IRA contributions while completing their tax forms and reviewing potential deductions. Whether you participate in company-sponsored retirement benefits or contribute independently, understanding how IRAs fit into your overall strategy can help you evaluate additional planning opportunities.

You might be unaware of a few things regarding IRAs. These are seven facts that are frequently forgotten.

1. An IRA Can Be Opened and Funded by a Nonworking Spouse

A spouse who does not receive a salary can still save for retirement. If you file a joint federal income tax return and one spouse earns taxable compensation, the nonworking spouse can open and contribute to their own traditional or Roth IRA. ¹

The deductible amount of a traditional IRA contribution may be limited based on income if the working spouse participates in an employer-sponsored retirement plan.

The total annual contribution cap for Roth and traditional IRAs in 2026 is $7,500. A catch-up contribution of $1,100 is permitted for individuals age 50 and older. ¹

Combined IRA contributions for both spouses cannot exceed the taxable income reported on the joint return.

2. You Can Still Contribute Even If You Are Not Eligible for a Deduction

Your traditional IRA contribution may not be deductible if your modified adjusted gross income exceeds certain thresholds and you participate in a company retirement plan such as a 401(k) or 403(b). ²

However, nondeductible contributions may still allow earnings to grow on a tax-deferred basis until withdrawal. ²

Assets from a traditional IRA may also be converted to a Roth IRA. ³ Conversions are permitted regardless of income level, although income taxes may apply depending on the amount converted.

3. Alimony May Not Count as Taxable Compensation for IRA Contributions

Under the Tax Cuts and Jobs Act of 2017, alimony payments from divorce or separation agreements signed on or after January 1, 2019 are not deductible to the payer and are not taxable income to the recipient. ⁴

Because IRA contributions must be based on taxable compensation, post-2018 alimony typically does not qualify.

Agreements signed before January 1, 2019 are generally grandfathered under prior rules unless formally modified.

4. Self-Employed? Consider a SEP IRA

If you have consulting income, freelance work, or a side business, you may be eligible to establish a Simplified Employee Pension (SEP) IRA.

SEP IRA contributions are generally made by the employer and may qualify as business deductions. Contribution limits are substantially higher than traditional or Roth IRAs.

Self-employed individuals may contribute up to 25% of qualified compensation, subject to IRS calculation guidelines. IRS Publication 560 includes worksheets for determining limits.

To make contributions for a given tax year, a SEP IRA typically must be established by the tax filing deadline, including extensions.

5. Catch-Up Contributions for Individuals Over Age 50

Individuals age 50 or older may make additional catch-up contributions to a traditional or Roth IRA.

The catch-up amount for 2026 is $1,100, with future adjustments indexed for inflation.

6. A Child Can Contribute to a Roth IRA if They Have Earned Income

A minor with taxable earned income may contribute to a Roth IRA up to the annual limit or the amount of earned income for the year, whichever is less.

Qualified retirement accounts such as IRAs are generally not counted as assets for purposes of determining the Student Aid Index (SAI) on the Free Application for Federal Student Aid (FAFSA), although withdrawals may affect income calculations. ⁵

7. You May Still Access Roth IRA Benefits Even if You Exceed Income Limits

A Roth IRA offers potential advantages such as tax-free qualified withdrawals and no required minimum distributions for the original account holder.

Although income limits restrict direct Roth IRA contributions, individuals may convert assets from a traditional IRA to a Roth IRA regardless of income.

IRS pro-rata rules require that all traditional, SEP, and SIMPLE IRA balances be considered when determining the taxable amount. Accurate tracking of after-tax contributions requires proper reporting, including Form 8606.

Because conversion strategies can involve complex tax considerations, reviewing your personal situation with a qualified tax professional may be helpful.

Support for Your Retirement Planning

For Halliburton employees evaluating how IRAs coordinate with workplace retirement benefits, understanding contribution limits, conversion rules, and spousal planning opportunities can play an important role in a broader retirement strategy.

The Retirement Group can assist you in evaluating how these IRA rules align with your long-term goals. If you have questions about retirement planning, you can speak with a representative by calling (800) 900-5867 .

Disclosure: Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

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Articles you may find interesting:

Sources:

1. 'Retirement topics - IRA contribution limits.' IRS, 3 Mar. 2026. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

2. “IRA Contribution Limits for 2025 and 2026.” Fidelity Learn, Fidelity Investments, 26 Jan. 2026, www.fidelity.com/learning-center/smart-money/ira-contribution-limits .

3. Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily
include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a
Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required
minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. Investing involves
risk, including possible loss of principal.

4. 'Divorce or separation may have an effect on taxes,' IRS Tax Reform Tax Tip, July 8, 2019. https://www.irs.gov/newsroom/divorce-or-separation-may-have-an-effect-on-taxes

5. 'How 6 Different Assets Can Affect Your FAFSA and Financial Aid Eligibility.' Saving for College, by Jeffrey Trull. Jan. 15, 2026. https://www.savingforcollege.com/article/how-7-different-assets-can-affect-your-financial-aid-eligibility

What are the main eligibility criteria for employees under the Halliburton Retirement Plan, and how have these criteria evolved since the plan was frozen to new participants after December 31, 1996? In what ways do these eligibility requirements impact current and future Halliburton employees?

Eligibility Criteria: The Halliburton Retirement Plan was frozen to new participants after December 31, 1996. Employees who were active participants and at least 55 years old by that date remain eligible under the plan. The eligibility criteria have remained largely unchanged for these participants, affecting current employees by limiting new enrollments, which can reduce the overall scope of retirement benefits offered to newer hires(Halliburton_2_27_2015_H…).

How does the funding mechanism of the Halliburton Retirement and Savings Plan impact the retirement benefits provided to employees? Discuss the actuarially determined contribution method and how it aligns with IRS regulations for pension plans in 2024.

Funding Mechanism: The Halliburton Retirement and Savings Plan uses an actuarially determined contribution method to fund retirement benefits, ensuring that the plan is in line with IRS regulations. This approach calculates contributions based on the plan’s liabilities and participants' service, helping maintain the financial health of the plan in 2024 by adjusting employer contributions as needed to meet legal obligations(Halliburton_2_27_2015_H…).

In the context of the Halliburton Retirement Plan, what options do employees have for distribution upon reaching retirement age or in the event of early retirement? Elaborate on the various distribution forms available, such as lump-sum payouts and annuities, and how these options are designed to support employeesâ€™ financial needs after retirement.

Distribution Options: Halliburton employees have various distribution options upon reaching retirement age, including lump-sum payouts and annuities. These options are designed to cater to diverse financial needs, with employees being able to choose between a one-time lump sum or recurring payments in the form of annuities for greater financial stability post-retirement(Halliburton_2_27_2015_H…).

What are the implications of excluding certain employee groups (e.g., union members, non-resident aliens) from the Halliburton Retirement Plan on the workforce's overall retirement security? Assess how this could affect Halliburton's ability to attract and retain diverse talent in the company.

Exclusion of Employee Groups: The Halliburton Retirement Plan excludes union members, non-resident aliens, and leased contractors from participation, which can impact the overall retirement security of these groups. This exclusion might limit Halliburton's ability to attract a more diverse workforce, as retirement benefits are a key factor in talent retention(Halliburton_2_27_2015_H…).

How can Halliburton employees access their retirement plan benefits, and what steps do they need to take to initiate a distribution request? Provide a detailed explanation of the distribution request process as outlined in the Halliburton Retirement Plan documentation.

Accessing Retirement Benefits: To access their retirement benefits, Halliburton employees must contact the Halliburton Benefits Center at the provided phone number. The distribution request process involves completing specific forms and complying with eligibility requirements to initiate benefit disbursement(Halliburton_2_27_2015_H…).

Considering changes in the economy and retirement landscape, how does Halliburton's approach to retirement benefits compare to industry standards? Analyze the strengths and weaknesses of Halliburton's retirement offerings relative to competitors in the same market segment.

Industry Comparison: Halliburton's retirement offerings, including a defined benefit plan, are competitive but limited due to the freezing of new participants after 1996. This places the company slightly behind competitors that offer more flexible or modern retirement plans, although its pension benefits remain a strong feature for eligible long-term employees(Halliburton_2_27_2015_H…).

How is the financial health of the Halliburton Retirement Plan monitored, and what measures are in place to ensure that the plan remains funded adequately to meet the obligations to its participants? Delve into the regulatory requirements that Halliburton must adhere to, including any recent updates to the IRS regulations in 2024.

Monitoring Financial Health: Halliburton monitors the financial health of its retirement plan through regular actuarial reviews to ensure that it remains adequately funded. The company adheres to IRS regulations and uses plan assets to cover necessary expenses, ensuring the plan can meet obligations to participants(Halliburton_2_27_2015_H…).

What role do Halliburton employees play in influencing the future of the retirement plan? Discuss any avenues available for employees to provide feedback or suggestions regarding changes to the retirement plan offerings or structure.

Employee Influence: While Halliburton employees may not directly influence retirement plan policy changes, they can provide feedback through the Benefits Center. However, changes to frozen plans are rare, so employee input may have limited impact on restructuring or reopening the plan(Halliburton_2_27_2015_H…).

What specific resources does Halliburton offer to employees for learning about and planning their retirement, and how can they be leveraged effectively? Discuss the importance of these resources in helping employees make informed decisions about their retirement.

Retirement Resources: Halliburton offers resources such as retirement planning tools and access to benefits counselors to help employees make informed decisions about their retirement. These resources are crucial in helping employees understand their retirement options and optimize their benefits(Halliburton_2_27_2015_H…).

How can employees at Halliburton contact the company to learn more about the retirement plan and its provisions? What specific contact methods or resources are available for employees seeking further information or assistance regarding their retirement benefits?

Contacting Halliburton: Employees seeking more information about their retirement benefits can contact the Halliburton Benefits Center directly. This service provides guidance on plan details, distribution options, and general retirement inquiries, ensuring employees have access to the assistance they need(Halliburton_2_27_2015_H…).