New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Duke Energy Workers and the New No Tax on Tips Rule What You Should Know

Healthcare Provider Update: Healthcare Provider for Duke Energy Duke Energy utilizes a range of health benefits and insurance plans provided through major healthcare organizations, with Aetna being one of the primary providers offering their employee health insurance coverage. Potential Healthcare Cost Increases for Duke Energy in 2026 As 2026 approaches, Duke Energy employees may face significant healthcare cost increases due to a combination of factors impacting the broader health insurance market. Record premium hikes for Affordable Care Act (ACA) marketplace plans, with some states eyeing increases exceeding 60%, could manifest in employer-sponsored plans as well. The potential expiration of enhanced federal premium subsidies, alongside rising medical costs and aggressive rate hikes from insurers, may significantly elevate out-of-pocket expenses for beneficiaries. This perfect storm of factors indicates that employees might need to prepare for substantial healthcare financial burdens in the upcoming year, as many individuals could see their premiums rise by more than 75%. Click here to learn more

'“Duke Energy employees may benefit from reviewing how the new tip deduction rules fit into their broader household planning, as thoughtful preparation can make a meaningful difference,” – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'“Duke Energy employees can use the new tip deduction rules as a reminder to review their overall income strategy and stay informed as guidance evolves,” – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How the new “No Tax on Tips” law works for eligible employees.
Income limits, qualifying occupations, and deduction rules.
How Duke Energy households may evaluate these provisions for planning purposes.

Some Employees May Retain a Greater Share of Their Wages

Eligible employees may deduct up to $25,000 in qualified, voluntary tips from their federal taxable income under a new federal tax rule that took effect on July 4, 2025. ¹ Duke Energy workers in eligible service-related roles may want to stay informed about these changes.

- The deduction applies to tax years 2025 through 2028.

- Income earned as tips is not taxable up to $25,000, however the deduction phass out for joint filers with Modified Adjusted Gross Income (MAGI) above $300,000 and single filers above $150,000. ²

What Does “No Tax on Tips” Mean?

A new provision under the One Big Beautiful Bill Act called “No Tax on Tips” permits eligible employees to deduct as much as $25,000 in voluntary tips from federal taxable income, provided that IRS qualifications are met. Voluntary tips do not include mandatory service charges.

To qualify, an employee must work in a profession the IRS and Treasury Department define as “customarily and regularly receiving tips.” A preliminary list includes roughly 70 job types, including:

- Food and beverage service
- Events and entertainment
- Guest services and hospitality
- Home repair and maintenance services
- Personal services
- Personal well-being and appearance
- Recreation and education
- Delivery and transportation

Health care, sports, and performing arts positions are excluded because these roles are not considered to receive tips regularly.

Did No Tip Tax Pass?

Yes. This provision became law on July 4, 2025 as part of broader federal tax reform, which may interest Duke Energy employees with members in eligible occupations.

How Does No Tip Tax Work?

Employees in qualifying roles may deduct up to $25,000 in voluntary tips from gross income. Key points:

- The deduction phases out for single filers at $150,000 MAGI.
- It begins phasing out for joint filers at $300,000 MAGI.
- It applies whether the taxpayer uses the standard deduction or itemizes.
- It is available from 2025 through 2028.

For example, a restaurant server in the 22% tax bracket who receives $20,000 in qualified voluntary tips may reduce their federal income tax by up to $4,400 if IRS requirements are met. This may be meaningful for households that include Duke Energy employees.

When Does Tipping Become Tax-Free?

The deduction begins with the 2025 tax year, meaning eligible employees can claim it when filing their 2025 federal return in early 2026. This timing may matter for Duke Energy employees managing household tax considerations.

Does This New Law Make Tips Entirely Tax-Free?

Qualified voluntary tips (up to $25,000) may be deducted from federal taxable income if the employee meets the occupation and MAGI rules. However, employees—including those in Duke Energy households—may still owe:

- State income taxes
- Local income taxes
- Social Security and Medicare taxes
- Taxes on tips in excess of $25,000

Is the No Tax on Tips Rule Limited to Cash Tips?

No. Voluntary tips received by cash, credit card, or tip pool may qualify. Required service charges do not. This distinction is important for Duke Energy households with individuals in service-based roles.

How to Make a Deduction Claim

Eligible employees can claim the deduction by referring to IRS instructions:

1. Report all earnings, including tips, on Form 1040, line 1a.

2. Complete Schedule 1-A, for deductions such as qualified tips and overtime.

3. Report total additional deductions on Form 1040, line 13b.

Employees may deduct only the qualified voluntary tips actually received, up to the $25,000 limit. Duke Energy employees should remember that eligible tips must still be properly reported for payroll tax purposes.

More Guidance Is Expected

The IRS and Treasury Department will release additional information. Because each household's situation differs, individuals—including those working at Duke Energy—may want to speak with a qualified tax professional for personalized questions.

What Is No Tax on Overtime?

Another provision within the 2025 law allows eligible employees to deduct qualifying overtime pay from federal taxable income—up to $12,500 for single filers or $25,000 for joint filers. ¹ The MAGI phase-out thresholds are the same as the tip deduction. This rule also covers 2025 through 2028, which may influence planning for Duke Energy households evaluating income timing.

Do You Need Assistance Navigating These New Tax Laws?

The Retirement Group can help Duke Energy employees understand how these deductions may influence their retirement planning approach. You can speak with a representative by calling (800) 900-5867 .

Featured Video

Articles you may find interesting:

Sources:

1. Internal Revenue Service. “One, Big, Beautiful Bill Provisions.” IRS , 2025, www.irs.gov/newsroom/one-big-beautiful-bill-provisions .

2. Fidelity Investments. “No Tax on Tips: A New Deduction Explained.” Fidelity Learn , 19 Nov. 2025, www.fidelity.com/learning-center/personal-finance/no-tax-on-tips .

3. Lautz, Andrew. “How Does ‘No Tax on Tips’ Work in the One Big Beautiful Bill?” Bipartisan Policy Center , 30 July 2025, bipartisanpolicy.org/explainer/how-does-no-tax-on-tips-work-in-the-one-big-beautiful-bill. Accessed 8 Dec. 2025.

4. “‘No Tax on Tips’ Explained.” TaxSlayer Support , TaxSlayer, 2025, support.taxslayer.com/hc/en-us/articles/40291875700749--No-Tax-on-Tips-Explained. Accessed 8 Dec. 2025.

5. Mahoney, Michael K., and Stephen Kenney. “New IRS Guidance Pinpoints How Individuals May Take Tax Breaks for Tips and Overtime.” Ogletree Deakins , 21 Nov. 2025, ogletree.com/insights-resources/blog-posts/new-irs-guidance-pinpoints-how-individuals-may-take-tax-breaks-for-tips-and-overtime. Accessed 8 Dec. 2025.

How does the Duke Employees' Retirement Plan calculate benefits at normal retirement age, specifically for employees who reach the age of 65? In what circumstances might an employee consider retiring before reaching this age, and how would the benefits differ if they choose this option?

Benefit Calculation at Normal Retirement Age: Duke Employees' Retirement Plan calculates benefits for employees who retire at age 65 by applying a formula that includes 1.25% of their average final compensation for the first 20 years of credited service and 1.66% for any additional years. If an employee retires before 65, they can do so after age 45 with 15 years of service, but their benefits will be reduced based on how early they retire, resulting in lower payments due to a longer payout period.

What considerations should an employee keep in mind regarding their unused sick leave or carry-over bank hours when calculating benefits under the Duke Employeesâ€™ Retirement Plan? How does Duke utilize these factors to enhance an employee's credited service for the purpose of benefit calculation?

Impact of Unused Sick Leave and Carry-Over Bank Hours: Unused sick leave and carry-over bank hours are converted into additional credited service, which can enhance the calculation of retirement benefits. Employees who have accumulated these hours can see their credited service extended, leading to higher pension benefits at retirement.

In what situations would an employee's benefits under the Duke Employees' Retirement Plan be automatically paid in a lump sum? How does the Plan determine the value of benefits that fall below the threshold for monthly payouts, and what implications does this have for retirement planning?

Lump-Sum Payments for Small Benefits: If the value of an employee's benefit is $5,000 or less, Duke Employees' Retirement Plan automatically pays it as a lump sum. For benefits between $5,000 and $10,000, employees can choose between a lump-sum payment or a monthly pension. This can significantly impact retirement planning, especially for employees weighing whether to take a smaller upfront amount or spread it over time.

How does the Duke Employees' Retirement Plan handle benefit adjustments for employees who continue to work beyond their normal retirement age? What factors influence how these adjustments are calculated, and what implications might this have for future financial planning for employees nearing retirement?

Benefit Adjustments for Postponed Retirement: Employees who continue working beyond their normal retirement date will see their benefits increased annually (by no less than 10%) to account for the shorter period during which they will receive payments. The plan recalculates benefits based on the employee’s continued service and compensation after age 65.

What options are available to employees of Duke University regarding payment forms when they retire, and what are the long-term implications of choosing each option? How do these choices affect both the retiree's monthly income and survivor benefits for a spouse or other beneficiary?

Payment Form Options and Implications: At retirement, employees can choose various payment options such as a single life annuity, joint and survivor annuities, or a lump-sum payment. These choices affect the amount received monthly and any survivor benefits for a spouse or beneficiary. Employees should carefully consider their long-term financial needs and the needs of their beneficiaries when selecting a payment option.

What specific protections does the Duke Employees' Retirement Plan provide for spouses in the event of an employee's death, and how does this influence the choice of payment options? What steps must an employee take to ensure that their spouse's rights are upheld under the Plan?

Spousal Protections: The Plan provides protections for spouses in the event of an employee's death. A surviving spouse can receive 50% of the employee's reduced monthly benefit through a joint and survivor annuity. Employees must take steps to ensure spousal rights are protected by selecting the appropriate payment option and ensuring the necessary documentation is completed.

How can employees of Duke University ensure that they are informed about their rights under ERISA while participating in the Employees' Retirement Plan? What resources and tools does Duke provide to help employees understand and assert these rights?

Employee Rights Under ERISA: Duke provides resources for employees to understand their rights under ERISA, including access to plan documents and assistance in filing claims. Employees are encouraged to use Duke's available tools to assert their rights and ensure they are fully informed about the benefits available to them under the Plan.

In what ways can employees at Duke University navigate the complexities of reemployment after retirement, and how does their choice of retiree status affect their benefits? What regulations govern how benefits are recalculated if they choose to return to work at Duke?

Reemployment After Retirement: Employees who return to work at Duke after retiring can continue to receive their pension if they work fewer than 1,000 hours per year. However, if they exceed 1,000 hours, their payments will be paused and recalculated based on additional service and earnings when they retire again. This provides flexibility for employees considering reemployment after retirement.

What impact do legislative changes, such as those introduced by the IRS, have on the Duke Employees' Retirement Planâ€™s structure and benefits? How should employees approach understanding these changes in the context of their personal retirement strategies?

Impact of Legislative Changes: Changes introduced by the IRS or other regulatory bodies can impact the structure of the Duke Employees' Retirement Plan and its benefits. Employees should stay informed about these changes and how they affect personal retirement strategies, particularly regarding tax laws and pension calculations.

How can employees at Duke University contact the Retirement Board for questions or clarifications regarding their retirement benefits? What is the best approach for reaching out to ensure that they receive timely and accurate information?

Contacting the Retirement Board: Employees can contact Duke's Retirement Board for any questions or clarifications regarding their retirement benefits. The Retirement Board is responsible for managing the Plan, and employees are encouraged to reach out directly for timely and accurate information to address any concerns about their retirement.

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

Duke Energy offers a comprehensive employee pension plan known as the Duke Energy Retirement Cash Balance Plan (RCBP), which has undergone restructuring over the years. This plan is available to employees based on years of service and age qualification, with specific details outlined in the company's plan documents. Duke Energy also provides a 401(k) plan named the Duke Energy Retirement Savings Plan (RSP), offering both traditional and Roth options. Employees typically become eligible for these plans after meeting certain service requirements, with detailed formulas for calculating benefits. The Summary Plan Description (SPD) and other relevant documents provide precise details, including the specific pages where this information can be found. It’s important to refer to these documents to understand eligibility criteria, plan formulas, and other terms specific to Duke Energy’s retirement benefits.

Layoffs and Reorganization: Duke Energy has implemented layoffs as part of a broader effort to cut costs and refocus on clean energy initiatives. In 2023, the company laid off a few hundred employees, mainly in Charlotte, as part of a $300 million cost-saving strategy. These layoffs were primarily in corporate and operational support roles. Duke Energy is also reorganizing to enhance efficiency as it continues to transition towards cleaner energy sources, including the expansion and modernization of its clean energy grid. This restructuring is crucial to maintaining competitiveness in the evolving energy market. Importance: Addressing these layoffs and reorganization is vital given the current economic and investment climate, as well as the political push for cleaner energy solutions. Understanding the impact of these changes helps stakeholders navigate the uncertainties in the energy sector.

I gathered detailed information about Duke Energy's employee stock options and Restricted Stock Units (RSUs) for the years 2022, 2023, and 2024. Duke Energy offers both stock options and RSUs to its employees, primarily as part of its compensation and incentive programs. The company uses specific acronyms such as DUK for its stock symbol and references these programs in its financial reports and proxy statements. In 2022, Duke Energy expanded its RSU offerings, which were primarily targeted at senior management and key employees as a form of long-term incentive. The stock options and RSUs are granted based on performance criteria, and employees who meet these criteria, particularly those in leadership roles, are eligible. By 2023, Duke Energy continued to utilize RSUs as a significant part of its compensation strategy, with a focus on aligning employee incentives with shareholder interests. This program was further reinforced in 2024 as part of the company's efforts to retain top talent during a period of operational restructuring.

For Duke Energy, the health benefits offered to employees in the years 2022, 2023, and 2024 are comprehensive and focus on a range of healthcare needs. Duke Energy provides medical, dental, vision, life, and disability coverage as part of its total rewards package. Additionally, wellness programs, retirement benefits, and work-life balance programs are emphasized to ensure the well-being of employees. Some specific healthcare-related terms and acronyms used by Duke Energy include the UHC (UnitedHealthcare) Transparency in Coverage initiative, which is part of their efforts to comply with legal requirements and ensure employees have access to clear information about their healthcare costs. Duke Energy also offers Parental Leave Pay for both mothers and fathers, providing up to six weeks of paid leave for new parents. In terms of recent employee healthcare news, Duke Energy has been actively involved in initiatives that align with their sustainability goals, which indirectly impact employee health benefits. For example, their clean energy transition is likely to bring about changes in the healthcare policies related to environmental health and safety as the company focuses on reducing its carbon footprint and promoting sustainable practices across its operations.

Additional Articles

Check Out Articles for Duke Energy employees

For more information you can reach the plan administrator for Duke Energy at 550 S Tryon St Charlotte, NC 28202; or by calling them at (800) 777-9898.

https://hr.duke.edu/benefits/retirement/457b/ https://investors.duke-energy.com/news/news-details/2022/Duke-Energy-expands-clean-energy-action-plan-02-09-2022/default.aspx https://www.stordahlcap.com/insights/understanding-net-unrealized-appreciation-nua-and-its-tax-benefits https://corient.com/insights/articles/net-unrealized-appreciation-strategy-after-tax-contributions https://www.thelayoff.com/duke-energy?page=2 https://www.myplaniq.com/LTISystem/f401k_plan.action?ID=4666 https://www.sec.gov/ https://simpleqdro.com/