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

U.S. Bancorp and the 2025 Tax Overhaul: What Employees Need to Know Now

Healthcare Provider Update: Healthcare Provider for U.S. Bancorp U.S. Bancorp, the parent company of U.S. Bank, primarily partners with UnitedHealthcare for its corporate health insurance offerings. This relationship allows U.S. Bancorp to provide a range of health benefits to its employees through UnitedHealthcare's extensive network and services. Potential Healthcare Cost Increases in 2026 In 2026, U.S. Bancorp may face substantial healthcare cost increases, influenced predominantly by rising insurance premiums driven by multiple factors. Record hikes in premiums are anticipated as federal subsidies from the Affordable Care Act expire, which could result in over 22 million enrollees experiencing steep out-of-pocket expenses. With major insurers like UnitedHealthcare requesting rate increases upward of 66% in certain markets, U.S. Bancorp's healthcare costs could rise significantly, compelling both the company and its employees to navigate a more expensive healthcare landscape. This situation highlights the urgent need for strategic planning to mitigate the financial impact on employees and the company's overall benefits strategy. Click here to learn more

'Given the significant changes introduced by the 2025 tax law, U.S. Bancorp 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, U.S. Bancorp 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 U.S. Bancorp 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 U.S. Bancorp 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. U.S. Bancorp 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 U.S. Bancorp 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 U.S. Bancorp 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 U.S. Bancorp 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 U.S. Bancorp 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. U.S. Bancorp 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 U.S. Bancorp 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 U.S. Bancorp 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). U.S. Bancorp 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. U.S. Bancorp 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 U.S. Bancorp 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 U.S. Bancorp 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. U.S. Bancorp 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 U.S. Bancorp 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.

How does the U.S. Bank Legacy Pension Plan calculate the Final Average Total Pay and Final Average Base Pay for employees, and what implications might these calculations have for retirement planning? What factors should employees at U.S. Bank consider when planning for their eventual retirement based on their pay history?

The U.S. Bank Legacy Pension Plan calculates Final Average Total Pay by taking the average of an employee's Total Pension Pay for the five consecutive calendar years during the last ten years of employment that provide the highest average. Similarly, Final Average Base Pay is calculated by averaging the Base Pension Pay for the same five-year period. Total Pension Pay includes base pay plus commissions, bonuses, and overtime, while Base Pension Pay only includes base salary and a few other components such as shift differentials and premium pay. These calculations significantly affect retirement planning, as higher pay during the last years of employment can lead to a more substantial pension benefit(US Bancorp_January 2023…).

What steps does U.S. Bank require for employees who wish to commence their pension benefits, and how does the timing of this commencement affect the benefits they will ultimately receive? Employees at U.S. Bank should understand the critical timelines associated with the retirement process, including the importance of initiating their requests within specific timeframes.

Employees who wish to commence their pension benefits must initiate the process at least 30 to 90 days before their intended benefit commencement date. The timing affects the benefits, as early retirement (before age 65) results in reduced monthly benefits due to the extended period over which benefits are paid. Conversely, delaying the commencement of benefits until the full retirement age (65) or later ensures the maximum monthly pension benefit(US Bancorp_January 2023…).

What are the different forms of payment options available under the U.S. Bank Legacy Pension Plan, and how might these options change based on the employeeâ€™s age and years of service? U.S. Bank employees need clarity on how to choose the best payment option to meet their individual needs in retirement.

The Plan offers several payment options, including a single life annuity, joint and survivor annuities (50%, 75%, or 100%), and estate protection annuities. These options can vary based on the employee's age and years of service. For example, younger employees may have a reduced monthly benefit if they choose early retirement, while older employees nearing or beyond age 65 will receive full benefits without reduction. The employee's choice of annuity type also affects the monthly payout and survivor benefits(US Bancorp_January 2023…).

How does U.S. Bank ensure the security of employees' pension plan information and personal benefits data, and what measures should employees take to protect their information? Employees should be informed about the companyâ€™s security protocols and best practices for safeguarding sensitive information related to their pension.

U.S. Bank implements several security measures, including encouraging employees to use strong, unique passwords for accessing benefit information and enabling multifactor authentication. Employees should also regularly monitor their account for unauthorized transactions, update contact information to receive notices, and use secure networks when accessing their pension plan data(US Bancorp_January 2023…).

In the event that an employee at U.S. Bank undergoes reemployment after retirement, how does this impact their pension benefits and what should they be aware of regarding benefit accrual? Employees need guidance on how transitioning back to work could affect their pension plans and retirement strategies.

If a retired U.S. Bank employee is rehired, their pension payments continue as usual. However, they will not accrue any additional benefits under the Legacy Pension Plan but may be eligible for participation in the Legacy 2010 Cash Balance Portion of the Plan. It is essential for rehired employees to understand the implications on their pension accrual and benefits(US Bancorp_January 2023…).

What are the eligibility requirements for participation in the U.S. Bank Legacy Pension Plan, and how do changes in employment status affect an employee's pension benefits? U.S. Bank staff should have a comprehensive understanding of eligibility criteria and how various employment changes can impact their pension rights.

Eligibility is limited to employees who had earned a benefit before January 1, 2020, or those rehired in an eligible position. Employment status changes, such as termination or reemployment, can affect whether an employee remains in the Plan. For example, employees rehired after January 1, 2020, may not accrue additional benefits under the Legacy Pension Plan(US Bancorp_January 2023…).

What specific rights do U.S. Bank employees have under the Employee Retirement Income Security Act (ERISA) in relation to their pension plan benefits, and how can they enforce these rights? U.S. Bank employees must be made aware of their legal rights to access plan information and contest any disputes regarding their benefits.

Employees have rights under ERISA to access plan information, file claims, and appeal denied claims. U.S. Bank employees can enforce these rights by submitting claims or appealing denials through the Plan's claims and appeals procedures. Additionally, employees may bring legal action if they exhaust the Plan's internal processes(US Bancorp_January 2023…).

How does U.S. Bancorp ensure that its pension plan complies with current IRS limits, and what should employees know about potential tax implications on their pension benefits? Clear communication from U.S. Bank regarding tax consequences and IRS guidelines for retirement benefits is crucial for employees to manage their finances effectively post-retirement.

The Plan adheres to IRS regulations, including limits on annual earnings ($330,000 in 2023) that can be considered for pension benefit calculations. Employees should understand the potential tax implications on their pension distributions and are encouraged to consult tax advisors to ensure proper tax handling(US Bancorp_January 2023…).

What processes are in place for U.S. Bank employees to file claims or appeals if they believe they are entitled to additional benefits under the pension plan? Employees at U.S. Bank should be informed about the claims process and know their options for seeking justice if their claims are disputed.

Employees can file claims or appeals by contacting U.S. Bank Employee Services or accessing the Plan’s claims procedures. Deadlines apply, and employees must submit claims within the specified time limits to avoid losing their rights to additional benefits(US Bancorp_January 2023…).

How can U.S. Bank employees contact the company for further assistance regarding the U.S. Bank Legacy Pension Plan, and what resources are available to them through the Employee Services division? Itâ€™s essential that U.S. Bank staff knows how to reach out for support regarding their retirement benefits and understands the services provided to help them navigate their pension plans.

Employees can contact U.S. Bank Employee Services by calling 800-806-7009 and selecting "Savings and retirement." Additionally, the Your Total Rewards website provides 24/7 access to pension information and support. Employees are encouraged to use these resources for assistance with their pension plan(US Bancorp_January 2023…).