Many employees at Chevron leave a large percentage of their ESIP in Chevron stock. And why wouldn’t they? Chevron has done consistently well for many years. If you own company stock in a workplace retirement plan like Chevron’s, you may qualify for a little-known tax break called NUA.
Your entire vested balance in your ESIP must be distributed (usually into an IRA) within one tax year (but you don’t have to take all the distributions all at once).
Whether NUA is right for you is a complex decision – should you fail to meet any of the criteria at any point, your NUA election could be disqualified and you would owe ordinary income taxes on top of any penalty on the amount of company stock distribution. We would be happy to sit down with you for a review of your finances and analyze your options going forward. Because we work with well over 200 Chevron executives, managers, employees and retirees, we are knowledgeable about your ESIP, CRP, LTIP, CIP, RRP, NUA potential and other issues specific Chevron employees (in addition to the retirement, investment, and estate planning issues everybody faces). In fact, chances are you may know one of our Chevron clients and can ask them how working with a financial advisor has helped them.
Please contact us at (925) 659-8020 with specific questions or to schedule a time to meet with one of our advisors.