hi, if by 11/7/2025 pay, I have reached the IRS limit of total gross income (base + bonus) and the limit for total contributions (before and after-tax from employee and chevron match), what else can I do now to continue receiving chevron's 8% match to the end of 2025?
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Seems like a good problem to have. Yet other's on this site whine and complain all day long about being mistreated and undercompensated and at the same time many claim the work is easy requiring little or no effort.
@wc the non-qualified ESIP-RP only kicks in if your base pay is above the IRS comp limit (usually psg 28 and higher). It doesn’t include your CIP. So if your base plus CIP puts you over the limit then you miss out on the 8% match for a portion of the year. This mostly impacts psgs 25-27 depending on the CIP in any given year.
Note that the pension is calculated differently and you can participate in the non-qualified pension plan if your base plus CIP puts you over the IRS comp limit.
@ad if you really met the IRS compensation limit, then you would know the company shifts to the ESIP-RP (restoration plan) to ensure you don’t miss out on the company match portion. You aren’t missing out on that 8% for the last couple of months.
@qs sorry. Just readong you max after tax as well
If you max out early they will take the 2% basic before tax and move it to After Tax basic for the rest of the year so you continue to get the company match
Is there a form or advice for applying for a promotion? Just cause the reviews are coming up and we are supposed to value ourselves
That is the reason why there is a cap on the income that can be matched, to cap it.
No, nothing you can do about it. The max match we can receive is $28,000; which is 8% times $350k.
@bq Talk to Fidelity about how to do this. They can walk you through it
thanks you guys... I called HR and also fidelity. I was told there is NOTHING I can do since I have reached the limit of both total contributions (my pre- and after-tax contributions, and Chevron's match), and the total gross income limit (base pay + bonus). You can continue receiving chevron 8% match unless one's base pay is above the total gross income limit, in that way, company is going to let you still put after tax money into the called deferred account (DCP), and then the matched amount will go to retirement restoration plan (RRP). very complicated process..
Mega backdoor Roth. There are a couple of wealth management firms that specialize in the Chevron ESIP that can help you if you can’t navigate it yourself.
The company will reduce your contribution to 2% to get the company match. Fidelity will refund any overage.
Do you mean the pre tax deferral limit (23.5k) or the comp limit (340k I believe). If it’s the deferral limit then you can contribute to after tax basic to get the match. If it’s the comp limit then you are out of luck. There is a donut hole in our 401k plan because you aren’t eligible for the non-qualified esip unless your base salary is above the limit. This means that if your salary plus CIP puts you over the limit you miss out on the match. I had a fight with total rewards about this a few years ago and was told that it was too complicated for them to resolve. It basically means I’m taking an 8% pay cut the last couple months of the year.
Wow, what a great issue to be concerned with. Sort of belies about 90% of the posts made on this site, though, so there's that.
My guess is nothing, but I'm not certain of that. To be safe, I always monitor mine and make adjustments in the second half of the year to ensure that I don't hit my cap until the last pay period of the year so that I can get Chevron's contribution every pay period.
Contribute at least 2% to after-tax basic. You will get your 8% company match.