You can change your contributions to the Savings Plan at any time, increasing or decreasing as necessary. Additionally, you are automatically vested in your contributions, the company’s matching contributions and any earnings on those contributions, meaning the money in your account belongs solely to you.
When you make a withdrawal, the amount you receive will be based on the current market value of your investments. While the money in your Savings Plan is intended to be used for retirement, there are other times you can access the money in your account, such as if or when:
- You leave the company. Any before-tax contributions you made will be taxable in full. However, you may be able to roll it over to another company’s plan or into an Individual Retirement Account (IRA) and continue to defer taxes.
- You reach age 591/2. You can make withdrawals once you reach this age even if you are not yet retired. Withdrawals of before-tax contributions and earnings will be subject to ordinary income tax. If held for at least five years, withdrawals of Roth after-tax contributions and earnings will not be subject to tax. Withdrawals of regular after-tax contributions will not be taxed, but earnings will be subject to ordinary income tax.
- You take out a loan. You can borrow from your Savings Plan account while you are working for Hess. An interest rate is established for your loan, which you pay through regular payroll deductions. Your Savings Plan payments — including all interest payments — are made to your own account. In effect, you pay yourself back with interest. Loans are made to you tax free.
- You have an immediate financial hardship. In certain situations, withdrawals are allowed at any time after you have exhausted any distributions under the Savings Plan. However, hardship withdrawals may be subject to a 10 percent tax in addition to ordinary income tax. See your Summary Plan Description (SPD) for more details on what qualifies as a hardship.
When you access your account following retirement, before-tax contributions and associated earnings, and regular after-tax earnings will be taxable in full. If you would like, you can request that the entire account be paid to you as a lump sum. If your vested account balance is more than $1,000, you can leave your money in the Savings Plan until age 701/2 or roll over your taxable distribution into an IRA or another eligible retirement plan.