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

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

Healthcare Provider Update: Healthcare Provider for Baxter International Baxter International primarily partners with a variety of global healthcare providers to ensure effective distribution and management of its medical products and services. Notable partnerships exist with organizations like the University of Chicago Medicine and various hospital systems across the United States, focusing on enhancing patient care through innovative medical technologies. Potential Healthcare Cost Increases in 2026 As we approach 2026, substantial hikes in healthcare costs are anticipated, particularly within the Affordable Care Act (ACA) marketplace. Reports indicate that healthcare insurance premiums could surge by over 60% in some states, driven by higher medical costs and the possible expiration of enhanced federal premium subsidies. The Kaiser Family Foundation warns that nearly 22 million marketplace enrollees may face premium increases of up to 75%, exacerbating the financial challenges for many consumers. These dynamics create a precarious situation as both insurers and patients navigate escalating out-of-pocket expenses, raising concerns about access to affordable healthcare in the coming year. Click here to learn more

'Given the significant changes introduced by the 2025 tax law, Baxter International 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, Baxter International 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 Baxter International 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 Baxter International 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. Baxter International 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 Baxter International 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 Baxter International 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 Baxter International 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 Baxter International 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. Baxter International 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 Baxter International 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 Baxter International 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). Baxter International 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. Baxter International 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 Baxter International 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 Baxter International 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. Baxter International 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 Baxter International 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.

Featured Video

Articles you may find interesting:

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.

What are the eligibility requirements for participating in the Baxter International Inc. Pension Plan, and how have they impacted employees who were hired after the participation closed date? Employees of Baxter International Inc. should be aware of the specific conditions that dictate eligibility to participate in the pension plan, as these factors determine the benefits they can receive upon retirement. Understanding how these age and service requirements are defined can significantly affect an employeeâ€™s retirement planning and financial security.

Eligibility Requirements for the Baxter International Inc. Pension Plan Baxter International Inc. typically defines pension plan eligibility based on factors like age, years of service, and employment status at the participation closing date. Employees hired after the plan closure would not be eligible, affecting their long-term retirement planning and necessitating alternative retirement savings strategies.

How does Baxter International Inc. calculate the final average pay for pension benefits, and what are the implications of compensation limits set by the IRS for employees nearing retirement? As employees approach retirement, knowledge about how Baxter International Inc. determines final average pay based on their earnings is crucial since it directly impacts the pension benefits they will receive. Employees must also consider the IRS limits on eligible compensation to fully understand how their eventual pension payouts will be calculated.

Calculation of Final Average Pay at Baxter International Inc. The final average pay for Baxter International Inc.’s pension benefits is likely calculated based on an employee's highest earnings years near retirement. This calculation could be subject to IRS compensation limits, which cap the earnings used in the benefit formula, potentially reducing the pension benefits for higher-earning employees as they near retirement.

What options are available for Baxter International Inc. employees when they decide to retire early, and how do these options affect their overall pension benefits? Early retirement can have significant financial implications for employees of Baxter International Inc., making it important for them to understand their choices and how each option might influence their long-term pension benefits. This includes looking at reductions in benefits and the age-related criteria that might apply.

Early Retirement Options at Baxter International Inc. Baxter International Inc. may offer options like reduced benefits or specific early retirement packages. These options could lead to lower pension payouts compared to retiring at the normal age, influenced by factors such as the number of years before normal retirement age and the actuarial reductions applied.

How has the freezing of the Baxter International Inc. pension plan in 2022 created changes for current and future participants regarding their accumulated benefits? Employees must grasp the consequences of the 2022 freeze, as it halts any additional benefit accruals and what this means in terms of vesting and distribution of benefits upon retirement. This shift may affect their retirement funding strategies and financial future.

Impact of the 2022 Pension Plan Freeze at Baxter International Inc. The freezing of the pension plan in 2022 means Baxter International Inc. ceased the accrual of benefits for participants as of that date. This affects employees' retirement planning, as no further benefits are accrued beyond the freeze, potentially requiring them to seek alternative ways to enhance their retirement savings.

What are the potential tax implications for Baxter International Inc. employees when opting for different pension payment options upon retirement? Employees should carefully evaluate the tax consequences of various distribution choices within the Baxter International Inc. pension plan to make informed decisions that optimize their financial outcomes in retirement. This requires an understanding of how taxes are applied to lump-sum payments versus annuity distributions.

Tax Implications of Pension Payment Options at Baxter International Inc. The choice between lump-sum payments and annuities at Baxter International Inc. has distinct tax implications. Lump sums could be subject to immediate taxation, potentially at higher rates, whereas annuities provide a steady income stream and may be taxed more favorably depending on individual tax situations.

How does Baxter International Inc. accommodate rehires and transfers regarding their prior pension benefits, and what policies govern these scenarios? Understanding the specific rules concerning rehires at Baxter International Inc. can help former employees plan their career strategies and assess the impact on their pension benefits. Employees need clarity on how their previously accrued benefits are handled in such situations.

Rehire and Transfer Policies Regarding Pension Benefits at Baxter International Inc. For employees rehired or transferred at Baxter International Inc., pension benefits previously accrued may be reinstated or continued, depending on the company’s specific policies on service crediting and benefit calculation for returning employees.

What rights and protections do Baxter International Inc. employees have under ERISA concerning their pension benefits, and how can they enforce these rights? Employees should be aware of their entitlements under ERISA to protect their interests in the Baxter International Inc. Pension Plan, including the procedures they can follow to challenge any denials of benefits. This knowledge empowers employees to safeguard their financial future effectively.

ERISA Rights and Protections for Employees of Baxter International Inc. Under ERISA, Baxter International Inc. employees are entitled to certain protections regarding their pension benefits, including the right to receive plan information, appeal denied claims, and sue for benefits and breaches of fiduciary duty. This legal framework ensures employees can effectively manage and protect their retirement benefits.

How does Baxter International Inc. ensure that pension benefits are secure, especially in the event of a plan termination or freezing event? Employees must comprehend the safeguards in place to protect their retirement assets in the event of potential changes to the pension plan status, which include federal agency involvement and how their vested rights are preserved.

Security of Pension Benefits at Baxter International Inc. In the event of plan termination or freezing, Baxter International Inc. must ensure that employees' pension benefits are secured, typically through insurance policies or federal agency guarantees such as those provided by the Pension Benefit Guaranty Corporation (PBGC), safeguarding benefits against company insolvency or plan underfunding.

What steps should Baxter International Inc. employees take to prepare for their eventual retirement in light of the details specified in the pension plan description? Retirement preparation involves a comprehensive understanding of the elements laid out in the Baxter International Inc. Pension Plan, including benefit calculations, retirement timing, and management of resources. Employees should consider this information when planning for a successful transition into retirement.

Preparation Steps for Retirement for Employees of Baxter International Inc. Employees should familiarize themselves with the details of the pension plan, such as benefit calculation methods, the impact of early retirement, and the integration of other retirement income sources. Engaging in financial planning and consulting with pension plan administrators or financial advisors can also help ensure a well-prepared retirement.

How can employees at Baxter International Inc. contact the company for more information regarding their pension plan and available benefits? Employees who seek clarity or assistance regarding their pension plan should know the appropriate channels and contact details to engage with Baxter International Inc. effectively. Resources available, including telephone numbers and administrative contacts, are paramount for employees navigating their retirement options.

Contacting Baxter International Inc. for Information on Pension Plans Employees needing further information or assistance regarding the Baxter International Inc. pension plan should contact the company’s HR department or pension plan administrator. Contact details are typically provided in the employee handbook or directly through the company's internal HR communication channels.

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

Baxter International announced a significant restructuring plan aimed at reducing operational costs, including a reduction in workforce across several departments. Additionally, there are changes to their employee benefits program.

Additional Articles

Check Out Articles for Baxter International employees

For more information you can reach the plan administrator for Baxter International at 1 Baxter Pkwy Deerfield, IL 60015; or by calling them at +1 224-948-2000.