Your contributions and the company match

Contributions details about ExxonMobil Saving Plan

Q. When I enroll in the Savings Plan, what decisions do I need to make?

A. There are three primary decisions you must make when you enroll in the Savings Plan:

  1. How much do you want to contribute?
  2. Do you want to make before-tax contributions, regular after-tax contributions, and/or Roth 401(k) contributions which are also made on an after-tax basis?
  3. How do you want to invest your contributions and the company match? Additional investment decision information is described later in this SPD in the section on Investment considerations.

Deciding how much you want to contribute

The Savings Plan is voluntary. You decide whether you want your contributions to be made on a before-tax and/or an after-tax basis. Listed below are the types of contributions that you may make to the Savings Plan. There are certain limitations on these contributions that may apply to you.

  • To participate, you must contribute a minimum of 6% of your pay to the Savings Plan by payroll deduction. This is called your minimum contribution. The company matches only your minimum contribution with 7% of your pay.
  • Beyond your minimum contribution, you may make additional contributions by payroll deduction in 1% increments, for a combined total up to 20% of pay.
  • You also may make contributions to your After-Tax Account other than through payroll deductions. These are called After-Tax Account special contributions and are made by check.
  • Participants who are age 50 or older in a given calendar year and who maximize their before-tax contributions and/or Roth 401(k) contributions may make catch-up contributions to the Before-Tax and/or Roth 401(k) Accounts.


Participants may make rollover contributions directly from another eligible plan into the Savings Plan. An eligible plan includes:

  • A tax qualified plan such as a 401(k) plan, profit-sharing plan, and a defined benefit plan.
  • A section 403(a) annuity plan.
  • A section 403(b) tax-sheltered annuity.
  • An eligible 457(b) plan maintained by a government employer.

The Savings Plan is Tax-Qualified

The Savings Plan is qualified under the Internal Revenue Code. This provides a valuable benefit by allowing deferral of taxes on before-tax contributions, the company match and any earnings in your Savings Plan Account. The earnings in your Roth accounts may even be exempt from tax.

Rollovers are accepted only in the form of cash from other eligible plans. After-tax contributions (other than after-tax amounts in Roth accounts) and amounts held in Individual Retirement Accounts (IRAs) are not eligible for rollover into the Savings Plan. By law, there are strict time limits and rules applicable to rollover contributions. Some things to consider:

  • Rollover contributions are placed in your General Account or Roth Rollover Account, depending on the type of account from which the funds are being rolled.
  • Rollover contributions are fully vested immediately upon acceptance into the Savings Plan.
  • Rollover contributions are not eligible for withdrawal once in the Savings Plan.

If you have worked for another employer and have eligible plan savings, you may roll over the tax-deferred funds from non-Roth accounts into the general account in the Savings Plan. Funds from a Roth account in an eligible plan with a previous employer may be rolled over into the Roth Rollover Account. This gives you the ability to consolidate more of your retirement savings into the Savings Plan.

Before-tax vs. after-tax contributions

When you make before-tax contributions, your taxable income is reduced and, as a result, you pay less taxes in that year.


Suppose your annual pay is $50,000 and you contribute 6% of your pay or $3,000.  This example shows a comparison of making before-tax contributions vs. after-tax contributions (regular after-tax contributions or Roth 401(k) contributions).

*"Taxes" for this example assumes a simple, flat federal income tax rate of 15% and do not include state or local taxes. Your tax savings will depend on your personal financial situation.

As the example above shows, you contribute the same amount (in this example, $3,000) whether you make before-tax or after-tax contributions. But contributing before-tax dollars reduces your current federal income taxes by $450. Before-tax contributions do not reduce your current Social Security or Medicare taxes.

Remember: these taxes are only deferred. When you receive a withdrawal or distribution of your tax-deferred contributions or earnings, they generally will be subject to taxes. Please see more in the section on additional tax considerations.

While contributions to the Before-Tax Account may provide current tax advantages, you cannot make withdrawals from your Before-Tax Account other than hardship withdrawals. Roth 401(k) Account and Before-Tax Account contributions are eligible for the same withdrawal rights. Contributions to the After-Tax Account, however, are eligible for withdrawals.  Please see more in the section on withdrawals.

Regular after-tax contributions v. Roth 401(k) contributions

Your Savings Plan Account can be greater if you make Roth 401(k) contributions rather than regular after-tax contributions.


Assume that the after-tax contributions for the one year in the example above grows at a constant rate of 5%. After 20 years, the amount in your account (after taxes) will be greater if you had made Roth 401(k) contributions because, in the case of a qualified distribution, earnings on these contributions are exempt from federal income tax. If the Roth 401(k) contributions are distributed in a non-qualified distribution, then the total amount (after taxes) will be the same as that for the regular after-tax contributions.

*"Taxes" for this example assumes a simple, flat federal income tax rate of 15% and do not include state or local taxes. Your tax savings will depend on your personal financial situation.

^Assumes a qualified distribution.

Before-tax contributions v. Roth 401(k) contributions

Change in your personal tax rate over time can impact the amount you ultimately receive from the Savings Plan in retirement.


Assume you have $10,000 to invest for one year. $8,500 is the equivalent of $10,000 on an after-tax basis after a 15% tax rate is applied. What is the value of this one year of contributions at the end of 20 years after taking into account taxes at distribution? Consider the following three scenarios:

1) If your tax rate at time of your contribution is the SAME as your tax rate at time you receive a distribution (for example, at retirement), the after-tax value of both types of contributions will be exactly the same.

2) If your income tax rate at time of distribution is HIGHER than your income tax rate at time of contribution, the Roth 401(k) contribution will result in a higher after-tax balance.

3) If your income tax rate at time of distribution is LOWER than your income tax rate at time of contribution, the before-tax contribution will result in a higher after-tax balance.

^Assumes a qualified distribution.

You may also be eligible to receive an income tax credit for making contributions to the Savings Plan, if your adjusted gross income does not exceed certain limits which are adjusted annually for inflation.  For 2012, these limits are $28,750 for single filers, $43,125 for heads of household, and $57,500 for married persons filing jointly.  For 2013, these limits are $29,500 for single filers, $44,250 for heads of household, and $59,000 for married persons filing jointly. The amount of the credit ranges from 10% to 50% of your contribution, up to the first $2,000 of your annual contribution amount

The company match

When you make at least the minimum contribution of 6% of pay, you automatically receive a company match of 7% of pay.

How you become vested

Vesting means ownership. When you leave the company, you are entitled to receive a distribution of the vested portion of your Savings Plan Account:

  • Your contributions and any earnings – You always are vested in your own contributions to the Savings Plan and in any investment earnings in your Savings Plan Account.
  • Company match – As an employee, you vest in the company match upon the earliest of the following events:
  • Completion of three years of vesting service
  • Reaching age 65.
  • Your death.

If you leave the company before you are vested, you forfeit (lose) the company match in your general and stock match accounts, but not the earnings on the company match.

Changing your payroll contributions and company match

You may change the percent of your payroll contributions at any time.

Any change in how you direct your contributions and company match will be effective at the beginning of the next full payroll period after your request is processed. There is no limit on how often you may make such changes.

Suspending your payroll contributions

You may suspend your payroll contributions at any time. However, you will not be able to make payroll contributions again for six months.

Your payroll contributions also may be suspended as a penalty for making certain withdrawals.

While your contributions are suspended, no company match is made to your general account.

Limits on contributions

Federal law and Savings Plan provisions limit the amounts you and the company can contribute annually to the Savings Plan. These limits may be adjusted periodically. The following summarizes these limitations for 2013:

  • Percentage-of-Pay and Dollar Limits – Your contributions plus the company's contributions during a calendar year cannot exceed the lesser of 27% of your pay or $51,000. Both of these limits exclude catch-up contributions.
  • Before-tax contributions Limit – The total of your before-tax contributions plus Roth 401(k) contributions are limited to $17,500.
  • Catch-up contributions Limit – The total of your catch-up contributions (to the Before-Tax Account and the Roth 401(k) Account) are limited to $5,500.
  • Further Limits – Federal law further limits the amount that may be contributed (and the company can match) to the Savings Plan Accounts of certain higher-paid employees. If you are affected, you will be notified.

Limits for years after 2013 may be found on the Savings Plan website located at

In-plan Roth conversions

Once a year, you may also convert amounts in your non-Roth accounts into the Roth Conversion Account.  Generally, you can only convert amounts in existing non-Roth accounts in which you are fully vested and amounts which, if distributed, can be rolled over to an IRA.    

  • Employees younger than 59½ can convert a portion or all of the balance in their After-Tax, General, and Stock Match Accounts to the Roth Conversion Account.  However, funds in the Before-Tax Account cannot be converted.
  • Employees 59½ or older can convert a portion or all of the balance in their Savings Plan Account to the Roth Conversion Account.
  • Retirees and terminees can convert a portion or all of the balance in their Savings Plan Account to the Roth Conversion Account.

You can see the maximum amount available for you to convert on the ExxonMobil Savings Plan website at

The decision to make an in-plan Roth conversion is extremely complex and should take into consideration your individual tax and financial circumstances. You should consult your financial and tax advisors if you are thinking about making an in-plan conversion. Please see rollovers for important tax considerations for in-plan conversions.

The Savings Plan website at and the Savings Telephone Service (STS) at 877-966-4015 are available for account information and transactions.