Phillips 66 Employee Resource Page

1. Understanding Your Severance Package.

2. Optimizing Access to Your Retirement Accounts.

3. Securing Affordable Healthcare Coverage.

4. Assessing Financial Independence.

5. Considering the Tax Benefits of Moving Out of State.

6. Making Strategic Investments to Your 401(k) Investments.

7. Deciding on Roth 401(k) Contributions or Roth Conversions.

8. Unlocking Tax Benefits Through Net Unrealized Appreciation (NUA).

Understanding Your Severance Package & Financial Plan

How Severance Impacts Long-Term Financial Goals

Although the details of the severance package are still being negotiated and remain an ongoing development, discussed calculation may include a specified number of weeks of pay per year of service, along with additional ancillary benefits, subject to a potential cap. This payment structure can serve as a vital component of short-term income, bridging the financial gap as employees transition to their next career phase or retirement. For those approaching retirement, it is essential to consider how the severance payout might impact Social Security and Medicare planning. Properly assessing its role in a financial plan is crucial to avoid potential tax implications.

Optimizing Access to Your Retirement Accounts

401(k) and Pension Strategies for Early Withdrawals

For employees under 59.5, Phillips 66 offers retirement options that allow strategic access to funds. If you’re considering an early 401(k) withdrawal, the Rule of 55 could allow penalty-free access. Additionally, employees in Phillips 66’s pension plans—either the traditional defined benefit or the cash balance—can explore lump-sum payout options, providing flexibility in managing retirement cash flow. Each choice has unique tax implications, so a tailored approach is essential.

Securing Affordable Healthcare Coverage

401(k) and Pension Strategies for Early Withdrawals

A Letter of Intent is your opportunity to share detailed instructions for your loved one’s care, from daily routines to medical needs and personal preferences. Although it’s not legally binding, this document serves as a valuable guide for the trustee and guardian, ensuring your family’s wishes are honored.

Assessing Financial Independence

Evaluating Your Readiness for Retirement

Determining if you are financially prepared to retire or if you’ll need to pursue new employment involves a comprehensive review of your income streams, savings, and lifestyle goals. For Phillips 66 employees with substantial retirement savings or pension benefits, early retirement may be a viable option. Calculating long-term cash flow needs and investment income will help solidify whether continued employment is necessary.

Considering the Tax Benefits of Moving Out of State

Exploring State Income Tax Advantages Beyond California

For employees contemplating relocation, especially from high-tax states like California, there are notable potential savings. Moving to states without income tax, such as Texas or Florida, can provide significant relief on retirement income, including Social Security, pension payments, and capital gains. For those weighing this option, understanding the impact on your entire financial plan is essential.

Making Strategic Adjustments to Your 401(k) Investments

Preparing Your Vanguard 401(k) Before Leaving

Phillips 66’s 401(k) plan through Vanguard allows employees to optimize their portfolios before exiting. Consider adjusting your asset mix to align with your risk tolerance, timeline, and goals. For those close to retirement age, rebalancing can mitigate market risks, setting up a more stable income source as you approach or enter retirement.

Deciding on Roth 401(k) Contributions or Roth Conversions

Should You Contribute to Roth or Convert Later?

Employees have unique options when it comes to Roth 401(k) contributions or Roth conversions post-retirement. Contributing now can maximize tax-free growth, but waiting until retirement might allow for Roth conversions at lower tax rates. Evaluating both approaches—individually or in combination—can help you optimize tax savings.

Unlocking Tax Benefits Through Net Unrealized Appreciation (NUA)

Leveraging Phillips 66 Stock in Your 401(k) for Tax Savings

For employees who hold Phillips 66 stock within their 401(k), Net Unrealized Appreciation (NUA) can reduce taxes on gains. By rolling over company stock into a brokerage account, you could access favorable capital gains tax treatment, maximizing the tax efficiency of your retirement withdrawals. This approach requires precise planning but can offer substantial savings

Ready to Take Control of Your Financial Future?

Navigating financial decisions can feel overwhelming, but with Falcon’s support, you don’t have to go it alone. We’ll create a personalized strategy tailored to your unique goals, values, and lifestyle, giving you the clarity and confidence to embrace the future. Contact us today to start planning your financial future.

Locations

Phillips 66 Employee Resource Page

Understanding Your Severance Package & Financial Plan

Optimizing Access to Your Retirement Accounts

401(k) and Pension Strategies for Early Withdrawals

Securing Affordable Healthcare Coverage

401(k) and Pension Strategies for Early Withdrawals

Assessing Financial Independence

Evaluating Your Readiness for Retirement

Considering the Tax Benefits of Moving Out of State

Exploring State Income Tax Advantages Beyond California

Making Strategic Adjustments to Your 401(k) Investments

Preparing Your Vanguard 401(k) Before Leaving

Deciding on Roth 401(k) Contributions or Roth Conversions

Should You Contribute to Roth or Convert Later?

Unlocking Tax Benefits Through Net Unrealized Appreciation (NUA)

Leveraging Phillips 66 Stock in Your 401(k) for Tax Savings

Ready to Take Control of Your Financial Future?