Who doesn’t love free money? When you participate in the Savings Plan, you get paid to save!

You are eligible for the company match as soon as you enroll in the plan and begin making contributions. If you contribute more than 6 percent and reach the IRS annual limit before the end of the year, the company will continue making the matching contribution until 6 percent of your eligible pay is matched.

See page 11 of the Hess Savings Plan Investment Guide for an example of how the company match can help your account grow more quickly. It assumes your annual pay is $75,000, you contribute 6 percent and the rate of return is 6 percent. After 25 years, your account balance will have an extra $348,065 with the company match. Keep in mind, however, that the company match is discretionary, which means the company intends to provide the match but may decide it needs to change or stop the match. 

Your Contribution Options

• Before-Tax Contributions
  Before-tax contributions come out of your paycheck before federal (and, in most cases, state) income tax is deducted. So, you’re taxed on a lower amount of income, which means you get a tax break up front. And the money you save — including investment earnings — won’t be taxed until you withdraw it from the plan after age 59½.
• Roth After-Tax Contributions
  The Roth feature means you contribute after-tax dollars into the Savings Plan, so you won’t have to pay taxes on these contributions when you take them out. With a Roth account, your earnings come out tax-free, provided you hold the account for at least five years and don’t withdraw the money until at least age 59½.
• Regular After-Tax Contributions
  You can contribute regular after-tax dollars into the Savings Plan. You can take out regular after-tax contributions while you are still working — in full at any time or a portion once every 12 months. Any associated earnings will be subject to ordinary income tax and a 10 percent penalty if withdrawn before age 59½.
• Catch-Up Contributions
  If you’re age 50 or older, consider making additional catch-up contributions up to the IRS annual limit, which can help you boost your savings before you retire. See the Key Terms section on page 24 of the Hess Savings Plan Investment Guide for more details.