Healthcare Provider Update: Healthcare Provider for Murphy USA: Murphy USA's healthcare provider network includes a variety of options, primarily focused on major insurance companies that offer group health insurance plans for its employees. The specific providers can vary over time and by location, but typically include carriers such as UnitedHealthcare, Cigna, and Blue Cross Blue Shield, among others. Potential Healthcare Cost Increases in 2026: As Murphy USA employees navigate the rising tide of healthcare costs, the looming increases for 2026 present significant challenges. With ACA marketplace premiums expected to surge by an average of 20%, many employees may face substantially higher out-of-pocket expenses. These increases are driven by multiple factors, including escalating medical costs, the potential loss of enhanced federal premium subsidies, and changing employer benefit structures aimed at managing expenses. Consequently, employees at Murphy USA are advised to closely review their health benefit options and prepare for a potential increase in their personal healthcare expenditures next year. Click here to learn more
'Murphy USA employees with concentrated stock positions should understand that strategies like a Section 351 exchange can offer flexibility in managing large unrealized gains while preserving long-term planning options.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
'Murphy USA employees facing concentrated stock exposure may find that a Section 351 exchange provides an effective way to mitigate risk and maintain control over the timing of potential tax liabilities.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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When a Section 351 exchange can help diversify concentrated stock positions without an immediate tax bill.
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The core eligibility rules (80% control test) and basis/step-up mechanics that drive tax deferral.
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Sample case studies (James & Sarah) illustrating the numbers and outcomes.
The Strategic Potential of Section 351: An Analysis of a Multi-Stock Case in Tax-Deferred Reorganization
A sizable amount of the wealth of many high-earning professionals at Murphy USA may be invested in a small number of highly valued equities, including company shares accumulated through restricted stock units (RSUs), the employee stock purchase plan (ESPP), or equity awards earned due to long tenure. While rebalancing may seem out of reach due to the tax ramifications of selling these positions, investors can make tax-deferred contributions of appreciated assets to a new business entity through a Section 351 exchange. When an investor wants to manage several sizable, embedded gains at once, this tactic may be especially useful.
Think about James, a client with a $10 million portfolio. The value of one stock investment, which he purchased for $50,000, has increased to $1 million, or 10% of his total portfolio. At a long-term capital gains rate that can reach 23.8% for certain high-income taxpayers (20% maximum long-term capital gains rate plus the 3.8% Net Investment Income Tax), selling this position would result in a $950,000 capital gain and an estimated $226,100 tax bill. The amount available for reinvestment would be reduced by this tax.
Section 351(a) of the Internal Revenue Code provides: “If property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange such person or persons are in control (as defined in section 368(c)) of the corporation, no gain or loss shall be recognized.” Under Section 368(c), “control” generally means ownership of at least 80% of the voting power and 80% of each class of non-voting shares.
The transferor or transferors must own at least 80% of the new corporation’s stock right after the exchange to qualify for this treatment. This can be done for investors with sizable portfolios by joining a larger seeding group or acting as the principal seeder of a new entity.
In a Section 351 transaction, any built-in gains are preserved because the shareholder’s basis in the received stock typically carries over from the contributed property. If the shares are held until death, a step-up in basis under Section 1014 may eliminate the deferred gain.
Another client example involves Sarah, who has a $13 million portfolio. She owns two appreciated stocks:
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Stock A: Originally $300,000, now worth $3 million.
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Stock B: Initial cost basis $500,000, now worth $3 million.
At a long-term capital gains rate that can reach 23.8% for certain high-income taxpayers, the aggregate unrealized gain of $5.2 million would translate into an estimated tax of roughly $1,237,600 if sold today, which can constrain portfolio adjustments.
For employees of Murphy USA holding concentrated positions, taking part in a Section 351 exchange can reduce concentration risk and defer recognition of these gains without an immediate tax bill. If assets receive a step-up in basis at death, the deferred gain may be fully eliminated under current law, and deferral can provide flexibility in managing future tax obligations.
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- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
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Sources:
1. Internal Revenue Service. Revenue Ruling 2003-51 . Internal Revenue Bulletin 2003-21, 2003. PDF.
2. Friedel, David B., and Yaw O. Awuah. “ Sec. 351 Control Requirement: Opportunities and Pitfalls .” The Tax Adviser , 1 July 2014. Web.
3. Internal Revenue Service. “ Net Investment Income Tax (NIIT) .” IRS.gov , last reviewed 1 July 2025. Web.
4. Internal Revenue Service. Publication 551: Basis of Assets . December 2024 revision, posted 18 February 2025. PDF.
5. FINRA Investor Education Foundation (FINRA). “ Concentrate on Concentration Risk .” FINRA.org , 15 June 2022. Web.
What is the purpose of the 401(k) plan at Murphy USA?
The 401(k) plan at Murphy USA is designed to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.
How can employees at Murphy USA enroll in the 401(k) plan?
Employees at Murphy USA can enroll in the 401(k) plan through the company’s benefits portal during the open enrollment period or upon their hire date.
Does Murphy USA match employee contributions to the 401(k) plan?
Yes, Murphy USA offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
What is the maximum contribution limit for the 401(k) plan at Murphy USA?
The maximum contribution limit for the 401(k) plan at Murphy USA follows the IRS guidelines, which are updated annually. Employees should check the current limits for the year.
Can employees at Murphy USA take loans against their 401(k) savings?
Yes, Murphy USA allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.
What investment options are available in Murphy USA's 401(k) plan?
Murphy USA's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
How often can employees at Murphy USA change their 401(k) contributions?
Employees at Murphy USA can change their 401(k) contributions at any time, subject to the plan's rules and guidelines.
Is there a vesting schedule for the employer match in Murphy USA's 401(k) plan?
Yes, Murphy USA has a vesting schedule for the employer match, which determines how much of the matched contributions employees are entitled to based on their years of service.
Can employees at Murphy USA access their 401(k) funds before retirement?
Employees at Murphy USA may access their 401(k) funds before retirement under certain circumstances, such as hardship withdrawals or after reaching a specific age.
What happens to the 401(k) plan if an employee leaves Murphy USA?
If an employee leaves Murphy USA, they have several options regarding their 401(k) plan, including rolling it over to another qualified plan, cashing it out, or leaving it with Murphy USA.