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Alexandria Real Estate Equities Employees: Smarter Ways to Manage Taxes on Appreciated Stock

Healthcare Provider Update: Healthcare Provider for Alexandria Real Estate Equities Alexandria Real Estate Equities typically collaborates with a variety of healthcare insurance providers to facilitate employee health benefits. While specific affiliations may vary, employees commonly have access to major health insurance networks such as UnitedHealthcare, Anthem, or Cigna, ensuring comprehensive coverage aligned with their health care needs. Potential Healthcare Cost Increases for Alexandria Real Estate Equities in 2026 As Alexandria Real Estate Equities prepares for 2026, employees may face significant healthcare cost increases due to anticipated sharp rises in Affordable Care Act (ACA) premiums. With some states projecting hikes of over 60%, many employees could see their out-of-pocket healthcare expenses rise markedly. Additionally, without the renewal of enhanced federal premium subsidies, over 22 million policyholders may experience premium increases exceeding 75%. Alexandria Real Estate Equities employees should proactively review their benefits and consider strategic adjustments to mitigate the impact of these looming cost escalations. Click here to learn more

'Alexandria Real Estate Equities employees with concentrated stock positions may benefit from thoughtful tax planning that allows for tax deferral while balancing liquidity, compliance, and long-term compounding,' Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Alexandria Real Estate Equities employees who hold highly-appreciated stock may want to consider tax-efficient strategies that help mitigate their liabilities while aligning with their overall retirement goals,' Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How taxes can affect investment returns, particularly on concentrated stock positions.
Exchange funds and options-based strategies as methods for tax deferral and diversification.
Alternative planning techniques outside ETFs, including charitable trusts and gifting strategies.

By Carlos Hernandez, Wealth Enhancement advisor

When it comes to driving portfolio returns, many investors aim to keep management fees low by investing in low-cost index funds and exchange-traded funds (ETFs). While fees matter, however, the real culprit for lower-than-anticipated performance is taxes. ¹

Wealth Enhancement advisor Carlos Hernandez explains: 'By losing less to taxes each year, investors have access to more capital that can continue to compound over time. This makes tax deferral an important part of an effective financial plan.' Alexandria Real Estate Equities employees looking for long-term growth strategies could benefit by understanding how to better manage their investment tax burdens.

Trade Money

One area where taxes can take a toll is on the sale of company stock or other concentrated investment positions. Alexandria Real Estate Equities professionals looking to diversify could face significant capital gains taxes on an outright sale. One way to diversify without triggering immediate capital gains is through exchange funds. By contributing their highy-appreciated stock to a pooled fund, investors can trade their concentrated holdings for shares in a diverse basket of securities. This method can be used by Alexandria Real Estate Equities employees who want to diversify while postponing taxable events.

Although this method allows for tax deferral, it also requires investors to hold the exchange fund for a period of time, typically seven years. ² This could create a challenge for investors who require liquidity. Additionally, these funds are often exclusively accessible to wealthy, accredited investors—something Alexandria Real Estate Equities executives should carefully evaluate.

Funds Based on Options

Another way to mitigate taxes on the sale of highly-appreciated stock is by using options contracts. The idea is to hedge risk with put options while covering the cost of those puts by selling call options—a strategy called 'collaring'. From there, the strategy reverses, with investors selling put options and using the proceeds to buy call option on an equity or bond index. ³ If managed effectively, this helps to diversify a concentrated portfolio while still maintaining liquidity.

Given the complexity of this strategy, meticulous planning is necessary. It's generally recommended that investors work with an experienced financial advisor before pursuing this approach.

Things to Be Aware of

Although these strategies can be beneficial for Alexandria Real Estate Equities employees who hold highly-appreciated stock, caution is recommended. There are costs associated with these approaches, and potential liquidity risks. Additionally, the IRS may eventually contest such arrangements because their tax status has not been thoroughly examined—something Alexandria Real Estate Equities retirees should keep top of mind.

'Tax drag reduction strategies can be effective, but they must be assessed through the lens of risk, liquidity, cost, and compliance,' warns Carlos Hernandez. What is appealing in theory must hold up to inspection in the real world.

Alternative Strategies

Although they show promise, investors with highly-appreciated stock or those looking to postpone gains have other alternatives besides exchange funds or options. Other tactics could include:

- Prepaid variable forwards (subject to IRS regulations, contracts to sell at predetermined terms in the future).
- Charitable remainder trusts (CRTs), which allow investors to donate appreciated stock to a charitable trust and receive a stream of regular income in return.
- Donor-advised funds (DAFs), which provide investors with a tax deduction for the fair market value of the appreciated stock they donate.
- Other gifting techniques, such as direct donations to charity or family.
Each has its own set of guidelines, advantages, and disadvantages. To limit unnecessary taxes or violating the constructive sale regulations, careful planning is necessary for Alexandria Real Estate Equities professionals managing complex portfolios.

The Bottom Line

Although the movement to mitigate the tax burden on investments is not new, the instruments are changing. Both exchange funds and options-based structures offer investors a way to manage tax liabilities, especially for Alexandria Real Estate Equities employees who hold highly-appreciated stock.

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In the end, taxes are unavoidable. However, with the correct set of instruments, they can be controlled and postponed. 'The real value comes from aligning tax strategy with investment strategy,' summarizes Carlos Hernandez.

Sources:

1. BlackRock Advisor Center. ' Investing for After-Tax Returns ,' 2025.

2. Kiplinger. ' Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings ,' by Robert Waskiewicz. Sep. 11, 2025.

3. Financial Planning Association. ' Tax-Efficient Ways to Diversify Concentrated Stock Positions ,' by Peter Lazaroff. Oct. 2024.

What type of retirement plan does Alexandria Real Estate Equities offer to its employees?

Alexandria Real Estate Equities offers a 401(k) retirement savings plan to its employees.

How can employees of Alexandria Real Estate Equities enroll in the 401(k) plan?

Employees of Alexandria Real Estate Equities can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

Does Alexandria Real Estate Equities offer a company match for its 401(k) contributions?

Yes, Alexandria Real Estate Equities provides a company match on employee contributions to the 401(k) plan, subject to certain limits.

What is the maximum contribution limit for the 401(k) plan at Alexandria Real Estate Equities?

The maximum contribution limit for the 401(k) plan at Alexandria Real Estate Equities aligns with the IRS limits, which are updated annually.

Can employees of Alexandria Real Estate Equities take loans against their 401(k) balances?

Yes, employees of Alexandria Real Estate Equities may have the option to take loans against their 401(k) balances, subject to the plan's specific terms and conditions.

What investment options are available in the Alexandria Real Estate Equities 401(k) plan?

The Alexandria Real Estate Equities 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Is there a vesting schedule for the company match in the Alexandria Real Estate Equities 401(k) plan?

Yes, Alexandria Real Estate Equities has a vesting schedule for the company match, which means employees must work for a certain period to fully own the matched contributions.

How often can employees change their contribution amounts to the Alexandria Real Estate Equities 401(k) plan?

Employees of Alexandria Real Estate Equities can typically change their contribution amounts at any time, subject to the plan's rules.

What happens to the 401(k) plan if an employee leaves Alexandria Real Estate Equities?

If an employee leaves Alexandria Real Estate Equities, they have several options regarding their 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it with the current plan.

Does Alexandria Real Estate Equities provide educational resources for employees regarding their 401(k) plan?

Yes, Alexandria Real Estate Equities provides educational resources and tools to help employees understand their 401(k) plan options and make informed decisions.

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

Alexandria Real Estate Equities has recently announced a restructuring plan that includes layoffs and changes to employee benefits. This decision is significant given the current economic environment, which is characterized by rising interest rates and inflationary pressures. Addressing this news is crucial as it impacts the company's operational efficiency and could influence investor sentiment and future market conditions.

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For more information you can reach the plan administrator for Alexandria Real Estate Equities at 385 East Colorado Boulevard, Suite 299 Pasadena, CA 91101; or by calling them at (626) 578-9693.