While Chevron Employee Savings Investment Plan (ESIP) provisions make it possible to contribute as much as 75 percent of your pay in any given pay period, your contributions are still subject to annual Internal Revenue Code (IRC) limits. If you've made it your goal to contribute the maximum amount each year, be sure to note the 2018 limits and adjust your contribution percentage(s) accordingly.

What Are the 2018 Limits?

The 2018 limits are as follows:

  • You can contribute on regular pay up to $275,000. Once your regular pay for the year has reached $275,000, all contributions - employee and employer - to the ESIP automatically stop. Keep in mind regular pay includes your Chevron Incentive Plan (CIP) payment (if any).
  • You can contribute up to $18,500 (or $24,500 if you are age 50 or older) on a before-tax and Roth 401(k) combined basis.
  • If you reach the combined before-tax and Roth 401(k) limit, the first 2 percent of your contribution will convert to basic after-tax contributions so that you continue to receive the company match. Your before-tax and Roth 401(k) supplemental contributions will stop.
  • Your total annual employee and company contributions, or "Annual Additions," into the ESIP cannot be more than $55,000 ($61,000 if you are age 50 or older) or 100 percent of pay, whichever is less.

How Much Should I Contribute?

If you want to contribute the maximum amount under the plan and are unsure of the right percentage(s) to elect, you can use the ESIP Contribution Calculator. If you prefer to calculate on your own and want to contribute the maximum "total" amount, make sure you account for the company match when deciding how much you should contribute. The company match is fixed at 8 percent of your pay if you contribute at least 2 percent of your pay. If you subtract 8 percent of your pay from $55,000 (or $61,000 if you are age 50 or older), the remaining is approximately the maximum amount you can contribute each year.

How Do I Change My Contribution Percentage?

To change your ESIP contribution percentages, go to the Fidelity website. You can also call Fidelity at 1-888-825-5247. It can take up to two pay periods for contribution percentage changes to take effect. Please plan accordingly.