If you work for ExxonMobil, you might be familiar with Voya. The Voya Savings Plan is an important benefit for many ExxonMobil’s full-time employees, designed to help build a secure financial future. Here’s a clear breakdown of how the plan works and how it impacts you:

What Is the Voya Savings Plan?

The Voya Savings Plan is a 401(k) retirement savings plan where you can make contributions in two ways: pre-tax or after-tax. Pre-tax contributions reduce your taxable income for the current year, while after-tax contributions are taxed now but grow tax-free until you withdraw them. It’s important to note that as of writing, ExxonMobil adds to your savings with a company match of up to 7%. This means that for every dollar you contribute, ExxonMobil contributes up to 7% of your eligible earnings.

Let’s breakdown the plan a bit further:

Contribution Limits for 2024

For 2024, there are specific limits on how much you can contribute:

  • Under Age 50: You can contribute up to $23,000.
  • Age 50 or Older: The limit increases to $30,500.

The company match applies to income up to $345,000 per year.

Key Withdrawal Rules

Understanding the rules for withdrawing your funds is crucial:

  • Before Age 59.5: Withdrawals from pre-tax contributions are subject to ordinary income tax and a 10% penalty, though the “rule of 55” might offer some exceptions.
  • After Age 59.5: Withdrawals are taxed as ordinary income only, with no additional penalty.
  • At Age 73: You must start taking Required Minimum Distributions (RMDs) from your pre-tax balance.

Investment Options

The plan offers various investment choices:

  • ExxonMobil Stock Units
  • Equity Units: Reflecting large U.S. companies (S&P 500 Index)
  • Extended Market Units: Covering smaller U.S. companies
  • International Units: Including companies from China, Europe, and Japan
  • Bond Units: Based on the U.S. Aggregate bond index
  • Balanced Fund Units: A mix of stocks and bonds
  • Common Assets: Short-term, liquid investments

Now – let’s take a look at how our team at WealthVisory commonly helps ExxonMobil employees with Voya plans:

For Current Employees: WealthVisory provides free annual rebalancing of your Voya 401(k) investments. This service requires a minimum $1,000 investment and helps keep your portfolio aligned with your long-term goals.

For Retirees: Upon retirement, you can roll over your Voya plan into a customized IRA managed by WealthVisory. This may offer better investment options and returns, though it might come with higher fees. Understanding these fees and their impact is important before making a decision.

DIY vs. Advisor – What to Know

Deciding between managing your 401(k) yourself or working with a financial advisor is a key choice. Research suggests that financial advisors can potentially improve your annual returns by 1% or more, which might outweigh their fees. While not everyone needs an advisor, their expertise can offer significant benefits over time.

We are happy to help.  Reach out to WealthVisory today with any questions you may have or to speak with an advisor.