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Withdrawals
- Frequency
- Amount
- Withdrawal Payments
- Encumbered Balances
- Hardship Withdrawals from the Before-Tax Account
- Withdrawal Limit for Accounts in Existence for Less than 5 Years
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Withdrawals
Q. Can I withdraw money from my Savings Plan account while I am an employee?
A. Here is a summary of the basics of Savings Plan
withdrawals:
- Two withdrawals
are permitted in the same
calendar year from your after-tax contributions.
- Withdrawals are available in cash or shares of
ExxonMobil stock.
- Hardship withdrawals of before-tax contributions
are available for pre-defined hardship cases.
- No withdrawals are allowed from your Stock Match Account.
- The amount of a withdrawal may be limited by the
amount of any outstanding loans.
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A withdrawal is a transaction by which you elect to receive
a portion of your account. Generally, you are eligible to take a withdrawal if you have
an amount available for withdrawal in your account, or if you have a specified
hardship condition.
Withdrawals are also available after you terminate employment
if your account is in deferral. Withdrawals differ from partial
distributions in that partial distributions are available only
to retirees and withdrawals are available only
if you have an amount available for withdrawal.
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Frequency
You generally may make a withdrawal from after-tax contributions twice during a calendar year.
However, if you are an active employee who realizes
a gain in the course of selling any investment in
your General Account
and/or After-Tax Account, you may withdraw up to the amount of such gain. This withdrawal
type does not count towards the two times per calendar year limitation.
Such a withdrawal is still subject to all of the other rules and
conditions for withdrawals, such as the limitation on the amount
that may be withdrawn.
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Tax Implications
There may be important tax implications of making withdrawals
from your account. Please refer to the Tax Considerations section on
pages 47-52. |
Amount of Withdrawal
Your amount available for withdrawal consists of (1) your
"Pre-1987 After-Tax Contributions" balance (if any) plus
(2) your "Post-1986 After-Tax Contributions" balance.
(For heritage Mobil, Paxon and AES employees, additional protected balances may
be withdrawn. See pages
40 and 44 for more details).
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To minimize your current tax liability, your Pre-1987
After-Tax Contributions balance, if any, will be withdrawn first. This
is your remaining pre-1987 after-tax contributions in the General
Account. There is no federal tax liability on withdrawals of pre-1987
contributions.
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Once your pre-1987 after-tax contributions are
exhausted, your Post-1986 After-Tax Contributions balance, equal to the
amount of your total contributions to the After-Tax Account minus any
previous withdrawals, will be available for withdrawal. A part of each
post-1986 after-tax withdrawal is taxable. Please refer to the Tax
Considerations section on pages
47-52.
Withdrawal Payments
Withdrawals are available in cash or stock, or a combination of
both.
Cash Withdrawal (assuming withdrawal is all from the
After-Tax Account)
- When you elect a cash withdrawal, it will be
funded as follows:
- Common Assets will be liquidated up to the withdrawal amount
requested
- If there are insufficient Common Assets to fund the withdrawal,
then indexed funds will be sold on a pro-rata basis across all
indexed funds in your After-Tax Account
- If, after liquidating all indexed funds, there is still
insufficient cash to fund the withdrawal, then shares of
ExxonMobil stock in your After-Tax Account will be sold, from high
to low cost basis, to make up the remaining amount.
- If there are particular indexed funds in your
After-Tax Account you do not wish to be sold, then you need to
take action to ensure that you have sufficient Common Assets
prior to requesting a withdrawal.
NOTE for those with a Pre-1987 After-Tax Contributions Balance:
- For the minority of participants who have a
Pre-1987 After-Tax Contributions balance, the funding sequence
will be as follows, up to the lesser of the amount of the
withdrawal request or your Pre-1987 After-Tax Contributions
balance:
1. Common Assets in your General Account
2. Indexed funds in your General Account, sold on a pro-rata
basis
3. ExxonMobil stock, sold from high to low cost basis
- If your Pre-1987 After-Tax Contributions balance is less than
the amount of your withdrawal request, the funding sequence for
the remaining withdrawal balance will be as follows, up to the
lesser of the amount of the remaining withdrawal request or your
Post-1986 After-Tax Contributions balance:
1. Common Assets in your After-Tax Account
2. Indexed funds in your After-Tax Account, sold on a pro-rata
basis
3. ExxonMobil stock, sold from high to low cost basis
Stock Withdrawal
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If you elect to receive part or all of your
withdrawal in stock, the Trustee will distribute to you the number of shares
of stock you elect to receive first from the General Account, if you have a
Pre-1987 After-Tax Contributions balance, and then from the After-Tax
Account. When you withdraw stock from your account, your amount available
for withdrawal is reduced by either the cost of the stock or the market price on the date
of withdrawal, whichever is lower. There are important tax implications of
withdrawing stock (see the Tax
Considerations section beginning on page
47).
Encumbered Balances
If your General Account was encumbered by a loan on December 31, 1986,
special tax provisions may apply. If you need information about these
provisions, contact a Customer Service Representative via the
STS.
Hardship Withdrawals from the Before-Tax
Account
A hardship withdrawal from the Before-Tax Account is permitted for employees
if the eligibility requirements for a hardship withdrawal are met. To
demonstrate hardship, you must first exhaust all other avenues of funds.
This includes:
- 100% direct dividend payment election;
- loans; and
- any other withdrawals allowed.
By law, a hardship withdrawal is limited to the before-tax
amounts you contributed, plus pre-1989 earnings on those contributions.
The two times per year limit on withdrawals does not apply. This withdrawal
type will trigger a six-month suspension of employee contributions, and
consequently, no company match will be provided. The following circumstances
meet the definition for hardship:
- Unreimbursed medical expenses for you or your
spouse, children or dependents.
- Funeral expenses for your deceased parent,
spouse, children or dependents.
- Tuition, room and board expenses for the next 12 months
of post-secondary school education for you or your spouse,
children or dependents.
- Payments to prevent eviction of a participant
from or foreclosure
on the mortgage on the participant's principal residence.
For more information on applying for a hardship withdrawal,
please contact a Customer Service Representative via the
STS.
Withdrawal Limit for Accounts in Existence for Less than 5 Years
If your Savings Plan account
has existed for less than five years, the
combined balance at cost in your After-Tax Account, General Account, and
Stock Match Account
must at least equal the company match plus your After-Tax
Account payroll contributions (up to 6% of pay) made during the two years
before the withdrawal. If you make a withdrawal that causes your balance
to fall below this limit, your contributions and the
company match will
be suspended for six months.
The
Savings Plan Web site at http://xomsavings.ingplans.com
and the Savings Telephone
Service (STS) at 877-966-4015 are available for account information and
transactions.
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