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Amkor Technology Employees: Smarter Ways to Manage Taxes on Appreciated Stock

Healthcare Provider Update: Healthcare Provider for Amkor Technology Amkor Technology employees typically have access to healthcare benefits through various health insurance providers, which may include large national insurers. While specific details about the current healthcare provider may vary, major insurers like UnitedHealthcare, Anthem, Cigna, and Aetna are often involved in providing options for corporate coverage. Potential Healthcare Cost Increases for Amkor Technology in 2026 Looking ahead to 2026, Amkor Technology employees may confront significant increases in healthcare costs, largely due to soaring premiums in the Affordable Care Act (ACA) marketplace. Reports indicate that some states may experience premium hikes exceeding 60%, driven by the expiration of enhanced federal subsidies and rising medical costs. With many employees relying on ACA plans, it is crucial for them to evaluate their coverage options early, as rising deductibles and out-of-pocket expenses could lead to a financial strain for families. Awareness and proactive planning will be essential for navigating these looming healthcare challenges effectively. Click here to learn more

'Amkor Technology 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.

'Amkor Technology 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.' Amkor Technology 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. Amkor Technology 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 Amkor Technology 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 Amkor Technology 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 Amkor Technology 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 Amkor Technology 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 Amkor Technology 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 Amkor Technology 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 is the 401(k) plan offered by Amkor Technology?

The 401(k) plan at Amkor Technology is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

How does Amkor Technology match employee contributions to the 401(k) plan?

Amkor Technology offers a matching contribution to the 401(k) plan, typically matching a percentage of the employee's contributions, up to a certain limit.

When can I enroll in Amkor Technology's 401(k) plan?

Employees at Amkor Technology can enroll in the 401(k) plan during the initial onboarding process or during the annual open enrollment period.

Are there any fees associated with Amkor Technology's 401(k) plan?

Yes, Amkor Technology's 401(k) plan may have administrative fees, investment fees, or other costs, which are disclosed in the plan documents.

What investment options are available in Amkor Technology's 401(k) plan?

Amkor Technology offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and company stock.

Can I take a loan against my 401(k) with Amkor Technology?

Yes, Amkor Technology allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan.

What happens to my 401(k) plan if I leave Amkor Technology?

If you leave Amkor Technology, you can choose to roll over your 401(k) balance to another retirement account, cash it out, or leave it in the Amkor Technology plan if eligible.

How can I access my 401(k) account information at Amkor Technology?

Employees can access their 401(k) account information through the plan's online portal provided by Amkor Technology’s plan administrator.

Is there a vesting schedule for Amkor Technology's 401(k) matching contributions?

Yes, Amkor Technology has a vesting schedule for matching contributions, which means you must work for the company for a certain period before you fully own those contributions.

Can I change my contribution amount to the 401(k) plan at Amkor Technology?

Yes, employees can change their contribution amounts to the 401(k) plan at any time, subject to the plan's guidelines.

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

Amkor Technology announced a reduction in its global workforce by 10% as part of a restructuring effort to improve operational efficiency. The company also introduced changes to its employee benefits package, including adjustments to health insurance plans and retirement contributions.

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For more information you can reach the plan administrator for Amkor Technology at 2045 East Innovation Circle Tempe, AZ 85284; or by calling them at (480) 821-5000.