EnLink Midstream Employees: Smarter Ways to Manage Taxes on Appreciated Stock
Healthcare Provider Update: Healthcare Provider for EnLink Midstream:
EnLink Midstream primarily collaborates with health insurance providers to manage employee health benefits; however, specific healthcare providers associated with EnLink Midstream aren't publicly detailed in available resources.
Potential Healthcare Cost Increases for EnLink Midstream in 2026:
As we look towards 2026, EnLink Midstream could face significant increases in healthcare costs driven by a perfect storm of economic factors. Affordability concerns are amplified by anticipated record hikes in ACA premiums, with some states seeing increases over 60%. The potential expiration of enhanced federal premium subsidies may push out-of-pocket expenses for employees, causing premiums to rise by over 75% for many. This combination of escalating medical costs and regulatory changes could strain both company resources and employee health benefits, necessitating strategic adjustments in how EnLink approaches healthcare coverage.
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'EnLink Midstream 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.
'EnLink Midstream 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.' EnLink Midstream 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. EnLink Midstream 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 EnLink Midstream 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 EnLink Midstream 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 EnLink Midstream 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 EnLink Midstream 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 EnLink Midstream 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 EnLink Midstream 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.
What is the primary purpose of the 401(k) plan at EnLink Midstream?
The primary purpose of the 401(k) plan at EnLink Midstream is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.
How can employees enroll in the 401(k) plan at EnLink Midstream?
Employees can enroll in the 401(k) plan at EnLink Midstream by accessing the enrollment portal through the company's HR website or by contacting the HR department for assistance.
Does EnLink Midstream offer a company match for 401(k) contributions?
Yes, EnLink Midstream offers a company match for employee contributions to the 401(k) plan, which helps employees increase their retirement savings.
What types of investment options are available in EnLink Midstream's 401(k) plan?
EnLink Midstream'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.
When can employees start contributing to the 401(k) plan at EnLink Midstream?
Employees at EnLink Midstream can start contributing to the 401(k) plan after they have completed their eligibility requirements, typically within their first few months of employment.
What is the maximum contribution limit for the 401(k) plan at EnLink Midstream?
The maximum contribution limit for the 401(k) plan at EnLink Midstream follows the IRS guidelines, which may change annually. Employees should check the current limits for the specific year.
Can employees take loans against their 401(k) balance at EnLink Midstream?
Yes, EnLink Midstream allows employees to take loans against their 401(k) balance, subject to the plan's terms and conditions.
What happens to an employee's 401(k) balance if they leave EnLink Midstream?
If an employee leaves EnLink Midstream, they can choose to roll over their 401(k) balance to another retirement account, cash it out (which may incur penalties), or leave it in the EnLink Midstream plan if allowed.
Is there a vesting schedule for the company match in EnLink Midstream's 401(k) plan?
Yes, EnLink Midstream has a vesting schedule for the company match, meaning employees must work for a certain period before they fully own the matched contributions.
How often can employees change their contribution amounts in EnLink Midstream's 401(k) plan?
Employees at EnLink Midstream can typically change their contribution amounts 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.
Eastman Chemical offers a comprehensive 401(k) plan that includes both traditional and Roth options. Employees at Eastman Chemical are automatically enrolled with a 7% deferral rate, with an annual "Auto Increase" feature that raises this rate by 1% each year until it reaches 10%. The company matches 50% of employee contributions up to 7%. Additionally, Eastman Chemical contributes a Retirement Savings Contribution (RSC), equivalent to 5% of the employee's RSC-eligible earnings, which is separate from employee contributions. Employees can further enhance their retirement savings through after-tax contributions, and they can utilize Roth in-plan conversions to potentially grow tax-free retirement income (MyEastmanBenefits) (MyEastmanBenefits).
Eastman Chemical's pension plan is a defined benefit plan, where employees accrue benefits based on a combination of years of service and age qualification. However, specific details about the pension formula, years of service, and age qualification were not available in the sources consulted, and further document review would be necessary to obtain this data.
Restructuring and Layoffs: In 2023, EnLink Midstream announced a strategic restructuring aimed at optimizing operations and reducing costs. This included a reduction in workforce to streamline management and enhance operational efficiency. The company cited market conditions and operational challenges as reasons for these changes. The layoffs were part of a broader initiative to align resources with strategic priorities.
Importance: Addressing this news is crucial given the current economic environment, where companies are under pressure to adapt to market fluctuations and regulatory changes. The impact of such restructuring on employees and stakeholders, especially in a volatile economic climate, underscores the importance of staying informed about these developments.
EnLink Midstream offers its employees various stock options and Restricted Stock Units (RSUs) as part of its executive compensation packages. The RSUs are awarded under the company's incentive plan, and eligibility extends to executives and key personnel who contribute to the company's growth (EnLink Midstream) (FinViz). EnLink Midstream employees receive these RSUs with vesting schedules typically tied to performance metrics and tenure within the company. Stock options are also available but are generally reserved for senior executives (EnLink Midstream) (EnLink Midstream).
EnLink Midstream's stock options and RSUs play a crucial role in aligning employee incentives with shareholder value. The company expanded its RSU awards in 2022, 2023, and 2024 to support long-term employee retention and performance (EnLink Midstream) (Stock Analysis). Senior management and key employees are the primary recipients of these stock options, with vesting conditions tied to financial milestones such as EBITDA growth
Benefits Overview: EnLink Midstream provides a comprehensive benefits package that includes medical, dental, and vision insurance. Employees can also access health savings accounts (HSAs), flexible spending accounts (FSAs), and various wellness programs.
Healthcare Terms:
HSA: Health Savings Account
FSA: Flexible Spending Account
EAP: Employee Assistance Program
For more information you can reach the plan administrator for EnLink Midstream at 1722 Routh St, Suite 1300 Dallas, TX 75201; or by calling them at (214) 953-9500.
https://www.thelayoff.com/
Further Information for EnLink Midstream* Employees
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