XOM 401(k) Savings Plan
Employees are encouraged to enroll in a 401(k) savings plan right away. You may invest on a before-tax and/or an after-tax basis (regular or Roth) and choose out of seven investment options, with varying degrees of risk. You can also roll over pre-tax and Roth amounts from other eligible plans. Your contribution: 6% to 20% of your pay + Company contribution (If you contribute at least 6%): 7% of your pay = Total Savings: 13% to 27% of your pay.
As a participant, you vest in the company match after three years of vesting service, at age 65, or at death. If you terminate employment with less than three years of service, you forfeit the company match, but keep the remainder.
In addition, if you have an account in an eligible plan of a former employer, you may be eligible to roll over a distribution from that account to the Savings Plan.
Note: If you contribute at least 6 percent of your pay, you will receive a company match of 7 percent of your pay.
When you retire, if you have balances in your 401(k) plan, you will receive a Participant Distribution Notice in the mail. This notice will show the current value that you are eligible to receive from each plan and explain your distribution options. It will also tell you what you need to do to receive your final distribution.
- Watch for your Participant Distribution Notice and Special Tax Notice Regarding Plan Payments. These notices will help explain your options and what the federal tax implications may be for your vested account balance.
- Use the XOM Online Beneficiary Designation to make updates to your beneficiary designations, if needed.
When is the last time you reviewed your 401(k) plan account or made any changes to it? If it’s been a while, you’re not alone. 73% of plan participants spend less than five hours researching their 401(k) investment choices each year, and when it comes to making account changes, the story is even worse.
When faced with a problem or challenge, many of us are programmed to try to figure it out on our own rather than ask for help. The Christmas Eve ritual of assembling toys without looking at the instructions and that road trip when we refused to stop to ask for directions come to mind. But when we’re talking about 401(k) investing, choosing to go at it alone rather than get help can hurt.
Over half of plan participants admit they don’t have the time, interest or knowledge needed to manage their 401(k) portfolio. But the benefits of getting help go beyond convenience. Studies like this one, from Charles Schwab, show those plan participants who get help with their investments tend to have portfolios that perform better: The annual performance gap between those who get help and those who do not is 3.32% net of fees. This means a 45-year-old participant could see a 79% boost in wealth at age 65 simply by contacting an advisor. That’s a pretty big difference.
- XOM Retirement Plan, 2018
- “Retirement Plans-Benefits & Savings.” U.S. Department of Labor, 2019, http://www.dol.gov/general/topic/retirement.
- “Generating Income That Will Last throughout Retirement.” Fidelity, 22 Jan. 2019, http://www.fidelity.com/viewpoints/retirement/income-that-can-last-lifetime.