Your Hilcorp Benefits & 401(k)

Managing your Hilcorp 401(k) Savings Plan is a key component in planning for your retirement. Understanding how your plan works can help maximize your retirement savings. You can contribute to the 401(k) plan on both a Pre-Tax and Roth basis. Additionally, every dollar you contribute into your 401(k) is matched by Hilcorp up to 7% of your eligible earnings.

Eligible employees will be automatically enrolled into the plan with an initial 7% contribution rate. This rate can be modified at any time up to a maximum of 75% of your eligible earnings. As of 2024, if you are under the age of 50, the IRS caps your Elective Deferral and Roth contributions at $23,000. If you are over the age of 50, you can contribute up to $30,500.

After Tax

Hilcorp’s 401(k) plan also allows you to contribute money to your account on an after-tax basis? Currently limited to 15% of your eligible earnings, After-Tax contributions can be automatically converted into the Roth option without counting against your Elective Deferral or Roth contribution limits. This can allow you to save a considerable amount more in your retirement plan versus what is normally allowed. In some cases, this option can allow an individual to put as much as $76,500 (in 2024) into their retirement plan.

Why You Should Reconsider Investing in Target Date Funds

Capstone Wealth Advisors currently does not recommend investing in any of the Target Date investment options offered inside the plan due to several issues relating to the lack of public disclosures. Additionally, the Target Date options offered within the plan are investment funds that own other funds, this means you are paying multiple layers of asset management fees for every fund the Target Date option invests in.

Can you rollover funds into an IRA?

Hilcorp’s 401(k) plan currently allows you to rollover After-Tax and Roth money while you are still employed. If you are over the age of 59 ½, you can rollover the entire account balance at any time. Additionally, once you are separated from the company, you will be allowed to rollover the entire balance of your vested 401(k).

401(k) Loan Opportunities

Plan loans are allowed up to a maximum of $50,000 or half of your account balance, whichever is less. The 401(k) loans interest rate varies based on the current interest rate environment. Only one outstanding loan at a time is permitted.

What does “vesting” mean to you?

The term “vesting” refers to the portion of company matching dollars that are legally yours to keep. The longer you remain an employee of Hilcorp, the higher your vested amount will be. For example, an employee who has worked for Hilcorp for more than 5 years is 100% vested and entitled to receive all company match dollars contributed into his or her 401(k) plan. Conversely, an employee who has less than one year with Hilcorp is 0% vested will not receive any of the company matching dollars if separated from the company before their first anniversary of employment. Vesting percentages are based on years of employment with the company at the time of separation and based on the following schedule.

Looking for more ways to save for retirement?

Our team has diligently prepared and established a plan to help ensure you are maximizing your benefits with both pre-tax and post-tax contributions, we encourage you to reach out and schedule a time to talk about these options as you continue to prepare for retirement.