Boyd Gaming Employees: Smarter Ways to Manage Taxes on Appreciated Stock
Healthcare Provider Update: Healthcare Provider Information for Boyd Gaming:
Boyd Gaming provides healthcare benefits to its employees through a partnership with several major insurance carriers. While the specific provider may vary by region and plan, it is known that companies like UnitedHealthcare are frequently used to provide ACA-compliant health insurance options for Boyd Gaming employees.
Potential Healthcare Cost Increases in 2026:
In 2026, Boyd Gaming employees can expect significant healthcare cost increases, driven by various market dynamics. With health insurance premiums under the Affordable Care Act projected to rise sharply-and in some states exceeding 60%-many enrollees could face a staggering 75% hike in out-of-pocket costs if enhanced federal subsidies expire. Factors such as ongoing medical inflation, rising prescription prices, and hefty insurer rate increases are complicating the landscape, thereby necessitating strategic financial planning for employees approaching early retirement or anticipating major healthcare needs.
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'Boyd Gaming 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.
'Boyd Gaming 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.
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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.' Boyd Gaming 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. Boyd Gaming 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 Boyd Gaming 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.
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This could create a challenge for investors who require liquidity. Additionally, these funds are often exclusively accessible to wealthy, accredited investors—something Boyd Gaming 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.
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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 Boyd Gaming 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 Boyd Gaming 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 Boyd Gaming 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 Boyd Gaming employees who hold highly-appreciated stock.
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.
Boyd Gaming offers a 401(k) plan that allows employees to save for retirement by contributing a portion of their salary on a pre-tax basis.
How can I enroll in Boyd Gaming's 401(k) plan?
You can enroll in Boyd Gaming's 401(k) plan by completing the enrollment form provided by the HR department or through the employee benefits portal.
Does Boyd Gaming match employee contributions to the 401(k) plan?
Yes, Boyd Gaming offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
What is the maximum contribution limit for Boyd Gaming's 401(k) plan?
The maximum contribution limit for Boyd Gaming's 401(k) plan follows IRS guidelines, which may change annually. Employees should check the latest limits each year.
When can I start contributing to Boyd Gaming's 401(k) plan?
Employees at Boyd Gaming can start contributing to the 401(k) plan after completing their eligibility requirements, typically within the first few months of employment.
Can I change my contribution percentage in Boyd Gaming's 401(k) plan?
Yes, employees can change their contribution percentage at any time by submitting a request through the employee benefits portal or HR.
What investment options are available in Boyd Gaming's 401(k) plan?
Boyd Gaming'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 I change my investment choices in Boyd Gaming's 401(k) plan?
Employees can change their investment choices in Boyd Gaming's 401(k) plan as often as they wish, subject to any trading restrictions set by the plan.
Is there a vesting schedule for Boyd Gaming's 401(k) matching contributions?
Yes, Boyd Gaming has a vesting schedule for matching contributions, which means that employees must work for a certain period to fully own the employer's contributions.
How can I access my Boyd Gaming 401(k) account?
You can access your Boyd Gaming 401(k) account online through the employee benefits portal or by contacting the plan administrator for assistance.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Boyd Gaming announced a restructuring plan to reduce operational costs by 10% over the next year, including potential layoffs in non-core departments. The company is also reviewing its pension plan to ensure sustainability amidst current economic pressures.
For more information you can reach the plan administrator for Boyd Gaming at 3883 Howard Hughes Pkwy Las Vegas, NV 89169; or by calling them at +1 702-792-7200.
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