Ensign Group Employees: Smarter Ways to Manage Taxes on Appreciated Stock
Healthcare Provider Update: Ensign Group Healthcare Provider
The Ensign Group primarily operates skilled nursing facilities, assisted living facilities, and memory care services. They are known for providing a diverse range of healthcare services, including rehabilitation and care for patients with chronic conditions. Their operating model emphasizes patient-centered care, and they often partner with various healthcare providers to ensure comprehensive service delivery to their residents.
Potential Healthcare Cost Increases in 2026
As the landscape of healthcare continues to evolve, significant premium hikes are anticipated in 2026, particularly for Affordable Care Act (ACA) marketplace plans. With some states forecasting increases exceeding 60%, the loss of enhanced federal premium subsidies could lead to average out-of-pocket costs spiking by over 75% for the majority of policyholders. This surge is attributed to rising medical costs and the record profits reported by major insurers, creating a perfect storm for healthcare consumers facing steep financial challenges ahead. As consumers prepare for 2026, proactive financial strategies will be essential to mitigate the impact of these escalating costs.
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'Ensign Group 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.
'Ensign Group 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.' Ensign Group 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. Ensign Group 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 Ensign Group 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 Ensign Group 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 Ensign Group 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 Ensign Group 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 Ensign Group 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 Ensign Group 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 Ensign Group?
The primary purpose of the 401(k) plan at Ensign Group is to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.
Who is eligible to participate in Ensign Group's 401(k) plan?
All full-time employees of Ensign Group who meet the eligibility requirements, such as age and service time, are eligible to participate in the 401(k) plan.
How can employees enroll in the 401(k) plan at Ensign Group?
Employees can enroll in the 401(k) plan at Ensign Group by completing the online enrollment process through the designated benefits portal.
Does Ensign Group offer a company match for 401(k) contributions?
Yes, Ensign Group offers a company match for employee contributions to the 401(k) plan, which enhances the overall retirement savings.
What is the maximum contribution limit for the 401(k) plan at Ensign Group?
The maximum contribution limit for the 401(k) plan at Ensign Group is subject to IRS regulations, which are updated annually. Employees should refer to the latest guidelines for specific limits.
Can employees change their contribution percentage in Ensign Group's 401(k) plan?
Yes, employees can change their contribution percentage at any time during the year by accessing their account through the benefits portal.
What investment options are available in the Ensign Group 401(k) plan?
The Ensign Group 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 employees make changes to their investments in the Ensign Group 401(k) plan?
Employees can make changes to their investment allocations in the Ensign Group 401(k) plan on a regular basis, typically daily, depending on the plan's rules.
Is there a vesting schedule for the Ensign Group 401(k) company match?
Yes, Ensign Group has a vesting schedule for the company match, meaning employees must work for the company for a certain period before they fully own the matched contributions.
What happens to my 401(k) account if I leave Ensign Group?
If you leave Ensign Group, you have several options for your 401(k) account, including rolling it over to another retirement account or withdrawing the funds, subject to applicable taxes and penalties.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Ensign Group offers a 401(k) Savings Plan for its employees, which includes both pre-tax and Roth after-tax contribution options. The eligibility criteria for the plan requires that all full-time and part-time employees aged 18 and above can join the plan on the first of the month following 90 days of service. Employees can contribute up to 90% of their pay on a pre-tax or Roth basis, with the annual IRS contribution limit set at $23,000 for 2024. For employees aged 50 and above, an additional "catch-up" contribution of $7,500 is allowed.
Ensign Group matches 25% of the first 2% of compensation contributed by employees, with a vesting schedule of 25% per year of service, reaching full vesting after four years. The plan includes various investment options through Fidelity, including target-date funds tailored to retirement timelines.
Restructuring and Layoffs: In early 2023, Ensign Group announced a restructuring plan aimed at streamlining operations and reducing costs. This move included the consolidation of some facilities and a reduction in workforce, primarily affecting administrative and support roles. The company stated that these changes were necessary to improve efficiency and operational agility.
Ensign Group offered stock options (SO) and RSUs to its employees as part of its compensation package. The company's SO and RSU plans are designed to attract and retain key talent by aligning employee interests with shareholder value. For 2022, the stock options and RSUs were granted to executives and other key employees based on their performance and role within the company.
Ensign Group: Health Benefits Information
1. Official Website
Ensign Group Benefits Overview: Ensign Group's official website often outlines employee benefits, including healthcare options. You can usually find detailed information under their "Careers" or "Employee Benefits" sections.
Key Terms: Health Savings Account (HSA), Flexible Spending Account (FSA), Preventive Care, Employee Assistance Program (EAP).
2. Glassdoor
Benefits Review: Reviews from employees on Glassdoor often highlight the specifics of healthcare benefits, such as health insurance plans, coverage details, and employee satisfaction.
Key Terms: Health Insurance Coverage, PPO, HMO, Deductibles, Co-pays.
3. Indeed
Employee Reviews: Indeed provides employee reviews and salary information, including insights into healthcare benefits and any recent changes.
Key Terms: Medical, Dental, Vision Insurance, Coverage Options, Wellness Programs.
4. LinkedIn
Company Updates: LinkedIn can offer updates and posts related to Ensign Group's employee benefits, including any new health initiatives or changes in benefits.
Key Terms: Wellness Benefits, Health and Wellness Programs, Employee Health Plans.
5. News Articles
Recent News: Look for recent news articles on healthcare benefits or changes at Ensign Group. These articles might discuss new policies, cost changes, or improvements in health benefits.
Key Terms: Benefit Enhancements, Policy Changes, Healthcare Coverage Updates.
Summary of Recent Employee Healthcare News for Ensign Group:
2022 Updates: Ensign Group has been working on enhancing its healthcare benefits, including improving access to preventive care and expanding wellness programs. They’ve been emphasizing mental health support and telehealth services as part of their comprehensive healthcare offerings.
2023 Developments: In 2023, Ensign Group continued to evolve its health benefits by introducing new flexible spending account options and expanding employee assistance programs. There has been a focus on providing more comprehensive coverage and better support for chronic conditions.
2024 Changes: For 2024, Ensign Group has made adjustments to its health insurance plans, including updates to deductible levels and premium costs. They have also introduced additional wellness incentives and resources to support employee health and well-being.
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