Healthcare Provider Update: Healthcare Provider for Align Technology: Align Technology, the company known for its innovative dental products and services, primarily collaborates with various healthcare providers, including dental professionals and orthodontists, who utilize its Clear Aligner technology and the 3D imaging systems. Potential Healthcare Cost Increases in 2026: As healthcare costs across the United States are projected to climb significantly in 2026, employees at Align Technology should prepare for these changes. The expiration of enhanced premium subsidies under the Affordable Care Act, combined with rising medical costs and aggressive rate hikes from major insurers, could lead to premium increases exceeding 60% in some states. It's crucial for those covered under these plans to reassess their healthcare budgets and consider strategies to mitigate the impact of potentially steep out-of-pocket expenses as they navigate the evolving landscape of healthcare finance. Click here to learn more
'Many Align Technology employees underestimate how much “ghost taxes” can erode retirement income. Understanding these hidden thresholds today can help you make more thoughtful decisions for tomorrow’s financial well-being,' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
'Many Align Technology employees are surprised by how quickly hidden taxes like AMT, NIIT, and IRMAA can reduce retirement income, making it important for retirees to stay informed and thoughtfully plan so these costs don’t catch them off guard.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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The five “ghost taxes” that may unexpectedly impact retirement income.
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How these taxes can affect Align Technology employees and retirees.
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Strategies to better understand and prepare for these tax implications.
How Align Technology Employees Can Prepare for the Five “Ghost Taxes” That Could Haunt Retirement
There are several lesser-known surcharges and thresholds that may unexpectedly increase your tax bill in retirement, even if you already understand federal, state, and local tax obligations. These include the Alternative Minimum Tax (AMT), the Net Investment Income Tax (NIIT), the Medicare Income-Related Monthly Adjustment Amount (IRMAA), the Social Security “tax torpedo,” and the new senior deduction. Because many of these thresholds are not adjusted for inflation, they increasingly impact retirees, including those from Align Technology.
1. AMT: Alternative Minimum Tax
The AMT is a parallel tax system designed to make sure higher-income individuals pay at least a minimum amount of taxes. It has its own tax brackets, forms, and rules, with a top rate of 28%. 1 Some deductions available under the traditional tax system are limited under AMT rules.
For 2025, the AMT exemptions are:
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- $88,100 for single filers (phasing out at $626,350)
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- $137,000 for married couples filing jointly (phasing out at $1,252,700)
High income, exercising incentive stock options, large capital gains, or numerous itemized deductions may trigger AMT. Even though long-term capital gains receive preferential tax treatment, they can still reduce your AMT exemption. If AMT is paid in one year, a tax credit may be available in future years when AMT is not owed.
2. NIIT: Net Investment Income Tax
The NIIT applies a 3.8% tax on net investment income when modified adjusted gross income (MAGI) exceeds:
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- $200,000 for single filers
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- $250,000 for married couples filing jointly 2
This tax applies to dividends, interest, rental income, gains from home sales, and capital gains beyond exclusion limits. Withdrawals from 401(k)s and traditional IRAs are not directly taxed by NIIT, but they may increase MAGI and cause other investment income to be taxed.
Strategies to limit exposure include contributing to traditional retirement accounts, using health savings accounts (HSAs), and tax-loss harvesting. For instance, tax-loss harvesting allows you to use up to $3,000 in capital losses annually to offset ordinary income. 3
For individuals age 70½ or older looking to reduce MAGI, qualified charitable distributions (QCDs) may help. QCDs allow you to donate to qualified charities on a tax-free basis directly from your IRA, satisfying required minimum distribution (RMD) rules without bringing distributions into income. In 2025, up to $108,000 may be donated tax-free. 4
3. IRMAA: Income-Related Monthly Adjustment Amount
IRMAA adds a surcharge to Medicare Parts B and D premiums for higher-income retirees and is based on MAGI from two years prior.
For 2025, IRMAA applies when MAGI exceeds:
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- $106,000 for single filers
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- $212,000 for married couples filing jointly
Even a small increase above these limits can place retirees in a higher premium bracket. Tax-exempt interest from municipal bonds is included in MAGI for IRMAA purposes. Premiums and IRMAA can be deducted from Social Security payments or paid directly. Social Security allows individuals experiencing major life changes, such as retirement or death of a spouse, to request revised IRMAA calculations.
4. The Social Security “Tax Torpedo”
Social Security benefits may be taxable depending on “provisional income,” which includes:
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- Adjusted gross income
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- Non-taxable interest
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- One-half of Social Security benefits
If provisional income exceeds:
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- $34,000 for single filers
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- $44,000 for married couples filing jointly
...then up to 85% of Social Security benefits may be taxable. 5
Delaying Social Security up to age 70 increases benefits by 8% per year beyond full retirement age.
5. The 2025–2028 New Senior Deduction
From 2025 to 2028, individuals age 65 and older may qualify for a new senior deduction:
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- $6,000 for single filers
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- $12,000 for married couples filing jointly
This deduction phases out at:
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- $75,000 MAGI for single filers
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- $150,000 MAGI for joint filers
This is separate from the standard senior deduction, which currently adds $2,000 for individuals or $3,200 for married couples age 65 or older.
Need Help Navigating These Taxes?
Understanding how AMT, NIIT, IRMAA, Social Security rules, and senior deductions affect retirement income can be complex, especially for Align Technology retirees managing pensions, 401(k)s, and other investments. The Retirement Group can help you better understand how these tax considerations relate to your retirement planning. Call (800) 900-5867 for guidance.
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Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- 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!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- 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!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Sources:
1. Tax Foundation. “ 2026 Tax Brackets .” 9 Oct. 2025.
2. Gravelle, Jane G., and Don J. Marples. The 3.8% Net Investment Income Tax: Overview, Data, and Policy Options . Congressional Research Service, 30 June 2023, crsreports.congress.gov/product/pdf/R/R41413.
3. IRS. ' Topic no. 409, Capital gains and losses .' 12 Sep. 2025.
4. Wealth Enhancement. ' 7 Tax Moves to Consider Before The End of The Year ,' by Mary Taliaferro, CFP. Nov. 5, 2025.
5. Investopedia. ' Provisional Taxes: What They Are and How They Work ,' by Julia Kagan. 4 Sep. 2025.
What is the 401(k) plan offered by Align Technology?
Align Technology offers a 401(k) plan that allows employees to save for retirement through pre-tax and Roth contributions.
How can employees enroll in Align Technology's 401(k) plan?
Employees can enroll in Align Technology's 401(k) plan through the company’s benefits portal during the enrollment period or after they become eligible.
What is the employer match for Align Technology's 401(k) plan?
Align Technology provides a matching contribution to the 401(k) plan, which is typically a percentage of the employee's contributions, up to a certain limit.
When can employees start contributing to Align Technology's 401(k) plan?
Employees can start contributing to Align Technology's 401(k) plan after they have completed their eligibility period, which is outlined in the employee handbook.
Are there any fees associated with Align Technology's 401(k) plan?
Yes, Align Technology's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.
What types of investment options are available in Align Technology's 401(k) plan?
Align Technology’s 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Can employees take loans against their 401(k) balance at Align Technology?
Yes, Align Technology allows employees to take loans against their 401(k) balance, subject to the terms and conditions of the plan.
What happens to my 401(k) account if I leave Align Technology?
If you leave Align Technology, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the plan if permitted.
Does Align Technology offer any financial education resources for employees regarding their 401(k)?
Yes, Align Technology provides financial education resources and workshops to help employees understand their 401(k) options and investment strategies.
How often can employees change their contribution rate to Align Technology's 401(k) plan?
Employees can change their contribution rate to Align Technology's 401(k) plan at any time, subject to the plan’s guidelines.



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