Envista Holdings Employees: Smarter Ways to Manage Taxes on Appreciated Stock
Healthcare Provider Update: Healthcare Provider for Envista Holdings
Envista Holdings does not have a publicly listed healthcare provider; instead, employees typically receive health insurance benefits through various commercial insurance plans. As a significant player in the dental products and technology industry, Envista provides its workforce with access to adequate healthcare services, albeit the specific insurers may differ based on the plans offered.
Healthcare Cost Increases in 2026
In 2026, Envista Holdings employees may face significant increases in healthcare costs due to rising premiums and shifting employer strategies. With anticipated healthcare premium hikes in the ACA marketplace often exceeding 60% in critical areas, employees are advised to prepare for potential impacts on their out-of-pocket expenses. The expiration of enhanced federal premium subsidies may further exacerbate these financial challenges, pushing many employees to shoulder more substantial costs unless proactive steps are taken to manage their health benefits effectively. As a result, understanding upcoming changes in health plans and optimizing their choices for 2026 will be crucial in navigating this evolving landscape.
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'Envista Holdings 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.
'Envista Holdings 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.' Envista Holdings 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. Envista Holdings 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 Envista Holdings 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 Envista Holdings 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 Envista Holdings 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 Envista Holdings 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 Envista Holdings 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 Envista Holdings 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 retirement savings options does Envista Holdings offer to its employees?
Envista Holdings offers a 401(k) savings plan to help employees save for retirement.
How can I enroll in the 401(k) plan at Envista Holdings?
Employees can enroll in the 401(k) plan at Envista Holdings by completing the enrollment process through the company’s HR portal.
Does Envista Holdings match employee contributions to the 401(k) plan?
Yes, Envista Holdings provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
What is the vesting schedule for the 401(k) match at Envista Holdings?
The vesting schedule for the 401(k) match at Envista Holdings is typically outlined in the plan documents, and employees should refer to those for specific details.
Can I change my contribution percentage to the 401(k) plan at Envista Holdings?
Yes, employees at Envista Holdings can change their contribution percentage at any time, subject to the plan's guidelines.
What types of investments are available in the Envista Holdings 401(k) plan?
The Envista Holdings 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, allowing employees to choose based on their risk tolerance.
Is there a minimum contribution requirement for the 401(k) plan at Envista Holdings?
Yes, Envista Holdings may have a minimum contribution requirement for the 401(k) plan, which employees should verify through the plan documents.
At what age can I start withdrawing from my 401(k) at Envista Holdings?
Employees can generally start withdrawing from their 401(k) at Envista Holdings at age 59½ without incurring penalties.
What happens to my 401(k) if I leave Envista Holdings?
If you leave Envista Holdings, you have several options for your 401(k), including rolling it over to a new employer’s plan or an individual retirement account (IRA).
Does Envista Holdings offer loans against my 401(k) balance?
Yes, Envista Holdings may allow employees to take loans against their 401(k) balance, subject to the plan’s terms and conditions.
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