Aramco’s Savings Plan Allows Employees Access to After-Tax Savings
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Author: Reilly Financial Advisors
Released 14 December 2007
Did you know…
How important it is to have after-tax investments especially if you retire before age 59 ½?
Most Aramcons focus on their 401k (Advantage Savings) plan contributions with company matching of up to 9% of your qualified earnings (Base Pay plus Expat Premium minus Hypo tax). However, there is also the opportunity through the Regular Savings Plan to make after-tax contributions as well.
After-tax savings play an important role in retirement planning for those anticipating re-establishing a home and lifestyle and the expenditures necessary to do so. The need to prematurely access tax deferred 401k savings can cause undue tax burdens during retirement.
The flexibility that after-tax dollars provide can prove to be a valuable retirement asset.
Aramcons can contribute from 2% to 50% of their qualified monthly earnings through direct monthly payroll deductions to a combination of both the Regular and Advantage Savings Plans.
This is one example of the many factors you should consider as you construct your retirement plan. For more information regarding this program contact your Personnel Office or Aramco Services Company, P.O. Box 4534, Houston, Texas 77210-4534.
Reilly Financial Advisors
Toll Free: 800-682-3237
FAX: 619-698-7260
Email: rfa@rfadvisors.com