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Distributions
- Distributions to Current Employees
- Distributions to Retirees
- Distributions to Terminated Employees
- Your Account During Deferral
- How Your Savings Plan Account Is Distributed
- Special Rules for Certain SeaRiver
Maritime and Former Fuels Marketing Savings Plan Participants
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Distributions
Q. When may I receive a distribution from my Savings Plan account?
A. Your
Savings Plan account
generally may be distributed to you when your
employment ends. The timing and form of your
distribution depend
on the value of your account and whether or not you are a
retiree.
In addition, employees age 55 or older with at least 10 years of
Savings Plan participation may be eligible to receive a diversification
distribution of a portion of their Stock Match Account.
Distributions to Current Employees
Generally, amounts allocated to your Stock Match Account must remain there
until the final distribution of your Savings Plan account. However, you
may elect to receive a distribution of a portion of your Stock Match Account, known
as a diversification distribution, if you:
- Are at least age 55;
- Have completed at least 10 years of Savings Plan participation; and
- Are still employed on the last day of the calendar
year.
The actual election and distribution occur
in the following year. Additional information is provided when you become
eligible for a Stock Match Account diversification distribution.
Distributions to Retirees
If you become a retiree, your account will be distributed according to
the following rules:
- If the vested value of your Savings Plan account is
$1,000 or less at the time of termination of employment or later,
your vested amount is automatically distributed to you in cash to
the extent you do not provide distribution instructions.
- If, on the other hand, the vested value of your
Savings Plan account is greater than $1,000, your account remains in
deferral status until you elect a total account distribution
or your account balance falls to $1,000 or less. You may elect to
receive a total distribution of your entire account at any time.
- You may elect a partial distribution of your account
once each calendar year. The minimum you may request is $5,000.
Electing a partial distribution does not prevent you from electing a
total distribution of your account later in the same year or making
a
withdrawal
if a withdrawal balance is available.
- If you die before your entire account is distributed
and your surviving spouse is your beneficiary, he or she assumes the
account and will have the same total and partial distribution options
that were available to you before your death. If you die without a
surviving spouse beneficiary, your account is distributed to your
beneficiary.
- The law requires that you begin receiving annual
minimum distributions no later than April 1 of the year following the year in which you reach age
70-1/2. These minimum distribution rules do
not prevent you from continuing to defer total distribution of your
account, but, rather, simply require at least a certain percentage
of your account be distributed to you each year. (If your surviving
spouse maintains your account past the time you would have reached
age 70-1/2, minimum distribution rules will also apply.) You will
receive more information concerning minimum distributions if these
rules apply to you.
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Tax Implications
There are important tax considerations related to distributions
from the Savings Plan. See pages
47-52 for more details.
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Distributions to Terminated Employees
If you terminate employment but are not a retiree, your account is distributed
according to the following rules:
- If the vested
value of your Savings Plan account
is $1,000 or less at time of termination of employment or any time
thereafter, your vested amount is automatically distributed to you
in cash to the extent you do not provide distribution instructions.
- If, on the other hand, the vested value of your
Savings Plan account is more than $1,000, your account remains in
deferral status until you elect a total account distribution or your
account falls to $1,000 or less. You may elect to receive a total distribution
of your entire account at any time.
- If you reach age 65 and your account is still
deferred, it will be distributed to you. If you die while your
account is deferred, it will be distributed to your beneficiary.
Your Account During Deferral
Following termination of employment – whether or not as a retiree – but prior
to the time you take a total distribution of your Savings Plan account,
the operation of your account remains essentially the same as before your
termination of employment, except for the following:
- You may make special contributions only through the
end of the year in which you terminate employment.
- You may not make any other contributions to your account
and, therefore, you will not receive any company match.
- No hardship withdrawals can be requested, since your
account is now fully distributable.
- No new loans can be requested, but you must continue
to repay outstanding loans.
How Your Savings Plan Account Is Distributed
When you elect a total distribution of your Savings Plan account, all
of your investment options (other than ExxonMobil stock) are sold, and
the proceeds distributed to you in cash. You have the option to take some
or all of your shares of ExxonMobil stock in kind, or have the shares
of stock liquidated and the proceeds distributed to you in cash.
If you have a loan outstanding at the time
of your total distribution, the unpaid balance is deducted from your distribution.
As a retiree, you may elect to receive a partial
distribution in cash, ExxonMobil stock or a combination of both. The minimum
you may request is $5,000. Any cash you elect to receive is funded in
the following order from each account affected:
1. Common Assets
2. Indexed funds, sold on a pro-rata basis
3. ExxonMobil stock, sold from high to low cost basis.
Any partial distributions that you elect (other
than a distribution from your After-Tax Account) are treated for tax purposes
as a distribution first from your tax-paid balance in your
General Account,
and, as a result, are not taxable when you receive them. Any distribution
from your After-Tax Account
is prorated between the tax-paid and tax-deferred
balances in your account, similar to treatment of After-Tax Account withdrawals.
All other distributions are fully taxable. There are important tax consequences
of distributions (see pages
48-52).
Special Rules for Certain SeaRiver
Maritime and Former Fuels Marketing Savings Plan Participants
Certain employees or former employees of these businesses will receive payment of a portion
of their distribution in the form of an annuity, unless the employee elects
a lump sum and the employee’s
spouse waives the right to the annuity and consents to a lump-sum distribution.
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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