Anyone know why XOM is not allowing 401k distributions under the CARES act to avoid 10% tax penalty? Especially for those laid off?
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All while DW and high CL's pay themselves with your salary for a job well done for saving the company millions this year.
Job well done for saving the company millions for placing people like those put on the involuntary program. Now for upper managers and hi-pos to reap the rewards of the savings.. Meanwhile, the company continues to bleed money to support the dividend. What a bunch of r—ds running this company. DW is just a walking mo–n. He's done absolutely nothing to improve this company.
Laid off folks are still on the payroll till Feb 2021 and will get severance package plus paid vacation. So if $600 is make or break then something is just wrong with that person's budgeting.
Forcing retirement might be a little age discrimination. It is a dog eat dog environment now, and only getting worse with the lockdowns. You might not like where you work, but is is a lot better then being out of work on unemployment a hoping for 600.00 stimulus check.
Don't worry. They will during the next PIP cycle. Those retirement eligible will really lose out for choosing to stay.
XOM should have forced retirement to those who were eligible.
Looks like the new bill will allow for penalty free 401k withdrawals in 2021 (up to 100k). So that will probably be something to keep in mind for those recently laid off.
CARES expires Dec 30th.
Laid-off folks are technically employees till Feb 1. So, they may not be eligible.
When does the cares act and its 401k rules expire though ? I don't think laid off folks can even withdraw their 401k yet since they are still on the payroll till Feb 2021.
So, an individual can ask for a distribution and apply the IRS guidance while filing taxes and reclaim the taxes withheld. The burden of proof for qualification is on the individual.
A9. It is optional for employers to adopt the distribution and loan rules of section 2202 of the CARES Act. An employer is permitted to choose whether, and to what extent, to amend its plan to provide for coronavirus-related distributions and/or loans that satisfy the provisions of section 2202 of the CARES Act. Thus, for example, an employer may choose to provide for coronavirus-related distributions but choose not to change its plan loan provisions or loan repayment schedules. Even if an employer does not treat a distribution as coronavirus-related, a qualified individual may treat a distribution that meets the requirements to be a coronavirus-related distribution as coronavirus-related on the individual's federal income tax return. See section 4.A of Notice 2005-92.
Source: IRS.gov
If you are laid off.. roll it over into an IRA, then pull it out of IRA for cares act
Is the XOM Savings Plan legally a 401K?
When I took the Late Career Financial Planning class several years ago, the instructor seemed to indicate the XOM Savings Plan was not a 401K although it had many features of a 401K. Maybe true, maybe not true.