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When Wealth Moves Sideways: What Horizontal Transfers Mean for Becton Dickinson Households

'Becton Dickinson employees should treat the first spouse’s death as a bracket stress test—model RMDs early, pace Roth conversions, engage both partners, and coordinate with tax and legal professionals before surprises hit.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

'For Becton Dickinson employees, charting how assets shift to a surviving spouse can reduce unexpected surprises. Talking to qualified tax and estate advisors can help.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The horizontal transfer of wealth between spouses and its growing impact on estate planning for Becton Dickinson families.
The tax implications of Required Minimum Distributions (RMDs) and strategic Roth conversions to manage income brackets and help preserve assets.
The evolving role of charitable giving and spousal financial engagement in shaping effective multi-generational legacy plans.

Major wealth transfers are anticipated over the coming decades. By 2045, more than $84 trillion is expected to change hands—$11.9 trillion to charities and $72.6 trillion to heirs and family members ¹ —and many of those dollars will first move “across” to surviving spouses rather than straight “down” to children.

Because women often live longer than men, a sizable share of assets may shift laterally to widows before any vertical bequests occur, a point stressed by Wealth Enhancement senior wealth advisor Mike Corgiat. This is important for Becton Dickinson retirees with sizable IRAs to note.

Pre-boomer generations are projected to pass $15.8 trillion in the next decade, while baby boomers may transfer nearly $53 trillion ¹ —frequently after the first spouse dies—illustrating how wealth rarely travels in a clean vertical line.

This horizontal detour has real implications for required minimum distributions (RMDs), retirement savings, and estate tax exposure that can affect Becton Dickinson employees late in retirement.

Current rules require RMDs to begin at age 73 for those born 1951–1959 and at 75 for those born in 1960 or later, and a surviving spouse can often roll an inherited IRA into their own to delay distributions—sometimes compressing taxable income into fewer years.

Brent Wolf, a retirement income planner with Wealth Enhancement, notes that once RMDs start and the survivor files as single, identical withdrawals can land in higher brackets—an issue that can surprise a survivor when income sources are already shifting.

Strategic Roth conversions while both spouses are alive—often in the 60s or early 70s—may help trim future RMDs and give the survivor more control, a tactic many Becton Dickinson retirees may want to evaluate while they still benefit from joint tax brackets.

Corgiat emphasizes that conversions executed at comparatively lower rates can lessen the tax hit on both the survivor and heirs, while Wolf adds that thoughtful timing lowers the odds of large, forced taxable withdrawals later—key considerations for Becton Dickinson employees eyeing estate efficiency.

Philanthropy is shifting too, as more affluent families embrace “living legacy” giving so they can witness impact, but a sudden asset windfall can delay or confuse charitable intent if the less-involved spouse isn’t already engaged in the broader plan.

Wolf recommends that spouses who haven’t driven the finances start participating early, since many women may ultimately steer multimillion-dollar portfolios and will benefit from hands-on experience before the transfer moment arrives.

Coordinated planning across tax, investment, and estate disciplines can answer pivotal questions for Becton Dickinson retirees: How large might RMDs become with only one personal exemption? Would spreading Roth conversions over several years keep income in more favorable brackets? Are beneficiary designations current on retirement plans and insurance? Do charitable goals call for donor-advised funds, qualified charitable distributions (QCDs) from IRAs, or a family foundation? Has the estate been reviewed for credit shelter or portability strategies and potential federal or state estate taxes?

The death of the first spouse often triggers the most dramatic ownership and tax changes, so acting earlier—stress-testing single-life cash flows, harvesting gains or losses, accelerating withdrawals in low-income years, and reviewing insurance and titling—can materially influence outcomes for Becton Dickinson retirees.

Those headline numbers—$84.4 trillion overall, $72.6 trillion to heirs, $11.9 trillion to charities—signal the size of what’s coming, but the net amount that actually arrives depends on how transfers occur and which tax rules apply, especially for families with layered benefits and investments.

As this horizontal phase of wealth transfer approaches, Becton Dickinson employees may benefit by preparing actively to pass the baton to a suriving spouse.

SEO Snapshot / Keywords (keep for internal use or meta purposes): estate tax preparation; IRA rollover regulations; widow inheritance; RMD age 73–75; Roth conversion strategy; wealth transfer 2045; horizontal wealth transfer; charitable giving in retirement; Becton Dickinson retirement planning; Becton Dickinson retirement benefits.

Analogy: Picture a family’s wealth as a relay baton on an L-shaped track headed toward a $84.4 trillion finish line—$72.6 trillion earmarked for heirs and $11.9 trillion for charity—and the baton must first take a sideways turn between spouses, a reality many Becton Dickinson couples will face before assets sprint down the straightaway to children and philanthropy.

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Sources:

1. Cerulli Associates. “ Cerulli Anticipates $84 Trillion in Wealth Transfers Through 2045 .' 20 Jan. 2022.

2. MassMutual. “ The horizontal wealth transfer: Redefining women’s wealth ,” by Shelley Gigante, 10 Mar. 2025.

3. MarketWatch. “ When a spouse dies, there can be a ‘tax explosion’ for the one left behind ,” by Beth Pinsker, 18 Jan. 2025.

How does the Becton Dickinson and Company defined benefit plan differ from the cash balance plan in terms of eligibility and benefit calculation? Employees at Becton Dickinson and Company should be aware of how their retirement options and benefit calculations are structured, especially considering the historical context and the changes made after

Defined Benefit vs. Cash Balance Plan: The Becton Dickinson and Company defined benefit plan and cash balance plan differ significantly in terms of eligibility and benefit calculations. The defined benefit plan, which was the original format, calculates benefits based on the employee's final average pay, age, and years of service. On the other hand, the cash balance plan, introduced in 2007, provides a hypothetical account balance that grows with defined pay and interest credits. For eligibility, new hires after January 1, 2018, cannot join either plan, reflecting a closure to new entrants. Those rehired or transferred within the company after this date also cannot accrue new benefits under the cash balance plan.

This question encompasses the differences in participation rules, the implications of being hired before or after January 1, 2018, and how various employment classifications affect benefits.

Pension Benefits Calculation: Under the BD Retirement Plan, pension benefits are calculated based on 'Total Compensation,' which includes various forms of income like base salary, bonuses, and other regular compensations. The benefit is determined by 'Credited Service' and 'Vesting Service,' impacting the final benefit amount. Vesting in the plan occurs after five years of service, ensuring that employees are entitled to benefits regardless of subsequent employment duration.

In what ways are pension benefits and service calculated under the Becton Dickinson and Company BD Retirement Plan? The complexities involved in determining the pension benefit calculation are crucial for employees to understand as they plan for retirement. A discussion on how Total Compensation, Credited Service, and Vesting Service impact the final benefit amount will provide clarity to employees regarding their financial planning as they approach retirement.

Maximum Benefit Limits: Employees should be aware of IRS-imposed limits on contributions and benefits under retirement plans. For 2018, the compensation limit recognized for pension calculations was $275,000, adjusted annually for inflation. This affects the projected retirement benefits and requires employees to stay informed about annual adjustments to plan accordingly.

What specific maximum benefit limits should employees at Becton Dickinson and Company be aware of regarding their retirement plans and how do these limits adapt annually? Understanding the implications of IRS limits for defined benefit plans and cash balance plans is vital for employees at Becton Dickinson and Company. This question would delve into how annual adjustments might affect their projected retirement benefits and the importance of staying informed about these limits.

Addressing Discrepancies or Denial of Benefits: If discrepancies or wrongful denials occur concerning retirement benefits, Becton Dickinson and Company employees should contact the Plan Administrator. The process includes filing claims and understanding the rights to appeal under the Employee Retirement Income Security Act (ERISA). This structured approach helps employees rectify issues with their retirement benefits effectively.

How can Becton Dickinson and Company employees address discrepancies in their benefit calculations or if they believe they have been wrongfully denied benefits? The processes for appealing decisions made regarding retirement benefits can greatly impact an employee's financial future. This question would outline the steps employees can take, including contacting the Plan Administrator and the importance of understanding their rights under the Employee Retirement Income Security Act (ERISA).

Role of Committees in Managing the Retirement Plan: The Plan Administrative Committee and the Investment Committee play critical roles in overseeing the BD Retirement Plan. The former handles the plan's administration, ensuring compliance and managing benefit claims, while the latter focuses on the investment of plan assets. Employees can seek clarification or get involved by attending committee meetings or contacting them directly for specific inquiries.

What roles do the Plan Administrative Committee and the Investment Committee play in managing the BD Retirement Plan of Becton Dickinson and Company, and how can employees get involved or seek clarification on their plans? Employees interested in understanding the governance of their retirement plan will benefit from knowing who oversees the administration and investment of their benefits and how they can participate in discussions or seek advice.

Impact of Early Retirement: Early retirement affects the calculation of pension benefits, which are reduced based on the number of years retirement is taken before the normal retirement age. The plan allows for early retirement from age 55 with at least 10 years of service, with benefits reduced to compensate for the longer payout period.

How does the early retirement benefit impact employees at Becton Dickinson and Company, particularly in terms of eligibility and the calculation of reduced benefits? By exploring the conditions under which early retirement is permitted, along with calculations related to the reduction in benefits for taking early retirement, employees can make more informed decisions based on their personal circumstances.

Ensuring Accuracy of Retirement Benefits: To ensure accuracy in the calculation of retirement benefits, especially after changes in personal circumstances such as marital status or address, employees are encouraged to promptly update their information with HR. Regular reviews of their retirement plan statements and maintaining communication with the plan administrator are advisable practices.

What steps should employees of Becton Dickinson and Company take to ensure their retirement benefits remain accurate and up-to-date, especially after a change in personal circumstances? This question addresses the importance of regularly updating personal information and understanding the repercussions of life changes on retirement benefits, ensuring employees are proactive in managing their future.

Alternatives for Non-Eligible Employees: Employees not eligible for the BD Retirement Plan, possibly due to the timing of their hire or their role, should explore other retirement savings options like IRAs or the BD 401(k) Plan. These alternatives provide avenues for retirement savings, even for those not covered under the traditional pension plans.

What alternatives exist for Becton Dickinson and Company employees who are not eligible for the BD Retirement Plan, and how can they plan for retirement adequately? This discussion can help inform employees who may fall outside the eligibility criteria about other retirement savings options, such as Individual Retirement Accounts (IRAs) or employer-sponsored 401(k) plans.

Determining Survivors' Pensions: The survivor's pension is determined by the pre-retirement surviving spouse benefit, which generally provides a monthly benefit of 50% of the employee's pension, payable to the spouse for life after the employee's death. This emphasizes the importance of employees designating beneficiaries and understanding the impact of these decisions on their family's financial security.

In the context of the Becton Dickinson and Company BD Retirement Plan, how are survivors' pensions determined, and what options are available for employees regarding beneficiaries? Employees often overlook the significance of beneficiary designations. This question would clarify the process and options available for ensuring that survivors receive entitled benefits and the financial implications of different choices made regarding pension benefits for spouses and dependent children.

Contacting the Plan Administrator: Employees seeking more information about their retirement benefits should contact the Plan Administrator. Preparedness for such inquiries includes having detailed personal and employment information, understanding their current benefits status, and having specific questions or concerns about their plan benefits.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Becton Dickinson announced a restructuring plan that includes significant layoffs and a shift in their global operations strategy. The company aims to streamline its operations and reduce costs amid a challenging economic environment.

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For more information you can reach the plan administrator for Becton Dickinson at 1 Becton Dr Franklin Lakes, NJ 7417; or by calling them at +1 201-847-6800.