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Ameren and the 2025 Tax Overhaul: What Employees Need to Know Now

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'Given the significant changes introduced by the 2025 tax law, Ameren employees should proactively reassess their financial and estate planning strategies with qualified advisors to adapt effectively to both permanent shifts and temporary opportunities,' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'With major tax changes now permanent and new temporary provisions introduced, Ameren employees should revisit their retirement and estate planning to optimize financial opportunities in this evolving landscape,' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Permanent tax code changes affecting income, deductions, and estate planning.
Temporary tax benefits available from 2025 through 2028.
New savings and health care provisions available to families and retirees.

A New Tax Landscape for Ameren Employees

On July 4, 2025, President Trump signed a landmark bill into law that made most of the individual and corporate tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) permanent. For Ameren employees, this legislation could bring long-term effects on income, deductions, and retirement planning. The law also introduces several new tax provisions intended to ease burdens for seniors, families with young children, and those living in high-tax states. While these changes stop the automatic tax increases once slated for December 31, 2025, some provisions will expire after a few years—potentially prompting more political and financial revisions.

Background and Legal Hurdles

Getting the bill passed was complex. Lawmakers balanced the cost of extending the TCJA’s tax breaks by cutting Medicaid spending, reducing some clean energy credits from the 2022 Inflation Reduction Act, and eliminating personal exemptions. Analysts urge American households to consider how these trade-offs might affect long-term economic growth. Some components may offer modest tax relief for both consumers and businesses, possibly influencing economic momentum.

Core Permanent Provisions

1. Seven Tax Brackets

The structure of seven tax brackets—ranging from 10% to 37%—remains in place. ¹ Adjustments for inflation apply in select cases. Ameren professionals should assess their current income tier to understand its effect on overall tax liability.

2. Mortgage Interest Deduction

Interest on up to $750,000 of acquisition mortgage debt ($375,000 if married filing separately) remains deductible. For Ameren homeowners, this provision may provide continued tax relief depending on loan size and income.

3. SALT Deduction Cap

The $10,000 cap on state and local tax (SALT) deductions will temporarily increase to $40,000 before reverting in 2030. ¹ High-income Ameren earners in states with steep taxes may benefit from this short-term expansion.

4. Standard Deduction

Now permanent, the standard deduction is $15,750 for single filers and $31,500 for joint filers. ¹ These amounts will be adjusted for inflation starting in 2026—making it important for Ameren employees to monitor annual changes.

5. Estate and Gift Tax Exclusion

The estate and gift tax exemption has increased to $15 million per individual and $30 million per couple. ¹ This is especially relevant for Ameren executives with large estates or wealth transfer goals.

6. Charitable Giving Incentives

Above-the-line deductions of $1,000 for single filers and $2,000 for joint filers are reinstated, along with expanded adjusted gross income (AGI) limits for cash donations. Ameren retirees who prioritize charitable giving may find new planning opportunities here.

7. Repeal of Personal Exemption

The $4,050 per filer personal exemption has been permanently eliminated. ¹ Taxpayers continue to rely on enhanced Child Tax Credits and the standard deduction instead.

Temporary Enhancements (2025–2028)

Tax-Free Tips and Overtime

Workers earning under $300,000 (joint) or $150,000 (single) can deduct up to $25,000 in tips and $12,500 in overtime pay. This change may be relevant for Ameren employees in field service or operations roles.

Senior Deduction Boost

An additional $6,000 deduction is now available for individuals over 65, phasing out at incomes of $75,000 (single) and $150,000 (joint). ² This could affect many long-tenured Ameren employees planning for retirement.

Auto Loan Interest Deduction

Interest on loans for U.S.-assembled vehicles (up to $10,000) is deductible for individuals earning under $100,000 (single) or $200,000 (joint). Ameren families may consider how this could influence their vehicle purchasing plans.

Savings and Health Advances

“Trump Accounts” for Minors

Parents can contribute up to $5,000 annually to a child’s account that later converts to an IRA at age 18. Ameren families with long-term savings goals may consider this strategy.

Expanded Health Savings Account (HSA) Access

Telehealth services are now permanently included, and reimbursements up to $150/month ($300 for families) for direct primary care are allowed. This offers greater flexibility for Ameren workers with high-deductible health plans.

Flexible 529 Plans

Withdrawals from 529 plans now include costs for educational therapy, private tutoring, and testing fees. This expansion may benefit Ameren parents supporting children with specialized learning needs.

Notably Excluded

Despite earlier debate, the new law does not repeal taxation of Social Security benefits. Individuals earning above $34,000 (single) or $44,000 (joint) will continue to have up to 85% of their benefits taxed. The temporary senior deduction, however, may reduce total liability for some.

Looking Ahead

The new law solidifies many tax policies and adds time-sensitive benefits designed for families, seniors, and individuals building long-term plans. Ameren employees may wish to speak with a financial advisor to evaluate how changes intersect with their compensation, equity, and estate considerations. Critical components like the SALT cap window, AGI phase-outs, and inflation-linked thresholds should be revisited each year to capture new opportunities.

Final Thoughts

Think of the 2025 tax act like a home renovation. Some features—like tax-free overtime and enhanced deductions—are temporary extensions that won’t last forever. Others—such as expanded credits and deductions—strengthen the core of the tax code. For Ameren professionals and retirees, now may be the right time to reassess your financial approach and align with the latest legislative updates.

AMT Update

The Alternative Minimum Tax exemption has been set at $88,100 for single filers and $137,000 for joint filers in 2025, and it will be adjusted for inflation starting in 2026. ¹ This provision helps reduce the likelihood that higher earners will fall under AMT obligations due solely to inflation.

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Sources:

1. U.S. Bank Wealth Management Team. ' New Tax Laws 2025: Tax Brackets and Deductions .' U.S. Bank, 15 Feb. 2025. Accessed 12 July 2025.

2. Tax Foundation. ' No Tax on Social Security vs. $4,000 'Senior Bonus' Tax Deduction .' Tax Foundation, 5 July 2025. Accessed 12 July 2025.

Other Resources:

1. AARP. ' What to Know About the New Tax Deduction for Older Adults .' AARP Editorial Staff, 7 July 2025. Accessed 12 July 2025.

2. Bankrate. ' There's a New Tax Break Worth $6,000 for Older Taxpayers ,' by Andrea Coombes, 11 July 2025. Accessed 12 July 2025.

3. Barron’s. ' Retirees, Here's How to Take Advantage of New Tax Breaks .' Barron's Tax Editorial Team, 9 July 2025. Accessed 12 July 2025.

How does the Ameren retirement plan design ensure that employees' benefits under the Union Cash Balance Plan grow over time, and what specific features contribute to this growth? Discuss how amortization methodologies and interest credits are determined for Ameren employees, particularly in relation to age and years of service.

Growth of Benefits: Ameren’s Union Cash Balance Plan ensures growth through annual interest credits and regular credits based on the employee’s age and pensionable earnings. Interest credits are applied at a rate of 5%, subject to change yearly based on Treasury rates plus an additional 1%. Employees also receive regular credits that increase with age, ranging from 3% to 8% of pensionable earnings(Ameren_Corporation_Sept…).

In what ways can employees of Ameren leverage the various payment methods available to them upon retirement? Elaborate on how the choice between lump-sum payments and annuities impacts their financial planning post-retirement.

Payment Methods: Ameren offers employees flexibility in receiving benefits as a lump sum or annuity. Lump sum payments provide immediate access to all benefits, which can be rolled over into other retirement accounts, while annuities provide steady income for life. Choosing between these affects financial planning by balancing immediate liquidity versus long-term income security(Ameren_Corporation_Sept…).

What are the implications of leaving Ameren before reaching retirement age, particularly in regard to vesting and benefit access? Discuss the conditions that affect an employee's eligibility and the importance of completing the required years of service.

Leaving Before Retirement: If an employee leaves Ameren before reaching retirement age but has completed three years of service, they are vested and entitled to their full cash balance account. If an employee leaves before vesting, their account is forfeited. Completing the required years of service is critical for retaining benefits(Ameren_Corporation_Sept…).

How does the Ameren Corporation balance contributions to the retirement plan with the need to comply with IRS regulations, specifically with the aim of avoiding a "top heavy" classification? Analyze how this impacts employee benefits and the strategies used by Ameren to ensure compliance.

Compliance with IRS Regulations: Ameren ensures compliance with IRS “top heavy” rules by monitoring the allocation of contributions to avoid excessive benefits going to key employees. If more than 60% of benefits are allocated to key employees, Ameren must provide minimum benefits to non-key employees, impacting overall contributions and plan design(Ameren_Corporation_Sept…)(Ameren_Corporation_Sept…).

What are the survivor benefits options available under Ameren's Union Cash Balance Plan, and how are these benefits calculated for spouses and non-spouse beneficiaries? Provide details on how varying age differences between an employee and their beneficiary affect these calculations.

Survivor Benefits: Under the Union Cash Balance Plan, a spouse beneficiary receives survivor benefits either as a lump sum or lifetime annuity. Non-spouse beneficiaries receive a lump sum. The calculation of survivor benefits adjusts based on the age difference between the employee and the beneficiary(Ameren_Corporation_Sept…).

How do the changes in IRS limits for retirement accounts in 2024 potentially affect employees of Ameren when planning for retirement? Discuss the strategic considerations Ameren employees should take into account in relation to contribution limits and catch-up provisions.

IRS Limits and 2024 Changes: Changes to IRS contribution limits in 2024 may affect employees by altering the maximum they can contribute to retirement accounts, including catch-up provisions for those over 50. Ameren employees should monitor these changes to maximize their retirement savings strategies(Ameren_Corporation_Sept…).

In what ways does the Ameren Corporation's retirement plan administration ensure transparency and participant rights, particularly under ERISA? Explore the various rights employees have regarding access to plan documents and the recourse available in the event of a benefit claim denial.

ERISA Rights and Transparency: Ameren ensures transparency and adherence to ERISA, giving employees the right to access plan documents, including the SPD and financial reports. In case of benefit claim denials, employees can appeal and, if necessary, pursue legal action(Ameren_Corporation_Sept…).

How can Ameren employees contact the company to learn more about their retirement benefits and navigate the complexities of the Union Cash Balance Plan? Discuss the available resources and support channels for employees to gain clarity on their benefits.

Contact for Plan Information: Ameren employees can contact the company through its pension benefits line at 877.7my.Ameren for details on retirement benefits and support with navigating the Union Cash Balance Plan. Online resources like myAmeren Pension Benefits also provide account information and assistance(Ameren_Corporation_Sept…).

What specific factors influence the calculation of interest credits in the Union Cash Balance Plan, and how do these credits affect the overall retirement savings of Ameren employees? Analyze the importance of understanding these factors in relation to future financial security.

Interest Credits: Interest credits are determined based on a fixed rate (5%) or the sum of Treasury Constant Maturity rates plus an additional percentage, ensuring steady account growth. Understanding how these credits accumulate is essential for predicting future retirement savings(Ameren_Corporation_Sept…).

How does the flexibility provided in the Ameren retirement plan enhance employee satisfaction and encourage long-term retention? Discuss the impact of features such as portability of benefits and options for account growth on employee engagement.

Flexibility and Retention: The portability of benefits and the ability to choose between lump sum or annuity payments enhances employee satisfaction and retention. Employees can take their vested account balance if they leave Ameren, encouraging long-term engagement(Ameren_Corporation_Sept…).

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

News: Ameren has announced a major restructuring plan involving the reduction of its workforce by 5% and a review of its pension benefits structure. The company is also implementing changes to its 401(k) plan, including reducing matching contributions to align with cost-saving measures.
Importance: Addressing this news is crucial due to the current economic uncertainty, which affects investment decisions and tax planning. The reduction in benefits and pensions could impact employees' retirement planning and financial stability, making it essential to stay informed about these changes. Additionally, the restructuring may influence Ameren's stock performance and investor sentiment in the broader market.

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For more information you can reach the plan administrator for Ameren at 1901 Chouteau Avenue St. Louis, MO 63103; or by calling them at (800) 755-5000.