Retiring from Chevron

We are commonly asked about certain Chevron benefits, and how they affect retirement:
  • Employee Savings Investment Plan (ESIP)
  • Employee Savings Restoration Plan (ESIP RP)
  • Chevron Incentive Plan (CIP)
  • LTIP Stock Options
  • Stock Options (ISO) and Non-Qualified Stock Options (NQSO)
  • LTIP Performance Shares
  • LTIP Restricted Stock Units
  • The Chevron Retirement Plan (CRP)
  • Chevron Retirement Restoration Plan (RRP)

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Retiring from Chevron

We are also often asked…

Can I really afford to retire?
Can I retire before 59½ and avoid penalties?
How long will my money last?
When is the best time to start taking my social security?
What are the costs of long-term health care?
Should I take monthly payments or the “lump sum” option from my pension?
What strategies can help me save on taxes?
Retiring from Chevron

Sample Retirement situation that we help with:

  • Sally Saver is looking to retire, she has $300,000 of CVX in her ESIP account plus around $400,000 of mutual funds.
  • The CVX stock has a basis of $71,000
  • Sally has a few options to move the funds out of the company 401k plan, as mentioned there are some tax saving strategies available.
  • Sally can distribute her ESOP Chevron shares into a brokerage account, the $71,000 would be taxable at ordinary income rates in the current year but the difference $229,000 ($300,000 CVX value – $71,000 cost basis) would have the option to be taxed at long term capital gains rate in accordance with tax law.
  • Sally would then roll the $400,000 of mutual funds over to an IRA, and take distributions as needed with the understanding that any money coming from the IRA account is taxed as ordinary income.