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'Kaiser Permanente employees can benefit from working with tax and legal professionals to revisit their 2025–2026 charitable giving timelines, as aligning these decisions with your broader financial picture can help you stay organized and make informed choices.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
Healthcare Provider Update: Healthcare Provider: Kaiser Permanente Kaiser Permanente is a leading integrated healthcare provider that offers a range of medical services including preventive care, hospitalization, and specialty care across various states. Potential Healthcare Cost Increases in 2026 As we approach 2026, significant healthcare cost increases are expected, especially for Kaiser Permanente customers. Health insurance premiums for Affordable Care Act (ACA) plans are projected to rise dramatically, with some individuals facing increases of over 75% due to the anticipated expiration of enhanced federal premium subsidies. Coupled with higher medical costs and aggressive rate hikes from major insurers, many policyholders could experience unprecedented out-of-pocket expenses, signaling a challenging financial landscape for consumers in the near future. Click here to learn more
It is important for KP employees to pay specific attention to interest rates as some of the KP pension plans are sensitive to rate changes. Some KP employees are allowed to take their pension utilising new rates each month. If interest rates continue to rise, KP employees will find this article useful as it will help with the retirement planning process.
'For Kaiser Permanente employees, thoughtful timing of 2025–2026 charitable gifts can influence your long-term retirement strategy, making it important to consider your broader financial plan when making these choices.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How the 2025–2026 rule changes may affect the tax benefits of your charitable gifts.
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The different charitable deduction rules for standard deduction filers versus itemizers.
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Strategies for timing your giving as a long-time Kaiser Permanente employee or retiree.
2025–2026 Charitable Giving: How New Regulations May Affect Your Tax Plan
By Wealth Enhancement's Kevin Land, CFP® and Wesley Boudreaux
Giving to charities at the end of the year has long been a December custom for many households, including long-time employees and retirees from Kaiser Permanente. However, the One Big Beautiful Bill Act has changed how charitable deductions work, with substantial updates taking effect in 2025 and 2026. As a result, the familiar “give by December 31” rule may not be the most tax-efficient approach anymore.
The law essentially establishes two different profiles of charitable donors starting in 2026:
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1. Filers who take the standard deduction.
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2. Filers who itemize deductions.
Depending on which group you belong to, the timing of your charitable contributions can lead to very different tax outcomes, which is especially important if most of your income and benefits come from years of work with Kaiser Permanente.
Below, we describe:
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1. Who stands to gain from postponing some gifts until 2026.
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2. Who stands to gain from increasing donations before or during 2025.
Group 1: Standard Deduction Filers
Why some people might prefer to wait and donate in 2026
Instead of itemizing, around 90% of Americans take the standard deduction, 1 and many Kaiser Permanente employees and retirees may fall into this category. Under the current 2025 rules, standard deduction filers generally do not receive any direct tax benefit from charitable gifts unless they itemize.
In 2026, that will change. Specifically, a new above-the-line charitable deduction will be available to standard deduction filers beginning in the 2026 tax year: 2
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- Up to $1,000 for single filers
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- Up to $2,000 for married couples filing jointly
Key characteristics—written into the law:
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- You do not need to itemize to claim this deduction.
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- Only monetary donations given to approved public charities are covered.
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- This deduction does not apply to supporting organizations or donor-advised funds.
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- Non-cash gifts such as household goods, appreciated stock, and cryptocurrency are not eligible.
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- The dollar limits are not indexed for inflation.
Real-world impact
In 2025, a cash donation made by a standard deduction filer is unlikely to produce any tax benefit unless that filer itemizes. If the same donor waits and gives in 2026, they may be able to deduct up to $1,000 or $2,000, depending on filing status.
For instance:
Let’s say you:
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- Are married and filing jointly
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- Typically donate $2,000 per year
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- Expect to take the standard deduction in both 2025 and 2026
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- Are in the 22% federal tax bracket
If you donate $2,000 in December 2025, you still take the standard deduction and do not gain any additional federal income tax savings from that gift.
If you instead donate $2,000 in January 2026, you can use the new $2,000 above-the-line deduction, which reduces your federal income tax by:
$2,000 × 22% = $440
Rules for documentation
Donors who give $250 or more in a single donation must obtain written confirmation stating that no goods or services were received in return for the contribution.
Who might use the standard deduction
While the standard deduction is available to all taxpayers, it may be used more often by:
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- Retirees with relatively limited deductible expenses
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- Younger individuals without many itemizable costs
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- Higher earners who have few deductions left to itemize (for example, capped SALT deductions)
For these donors, including many who spent their careers at Kaiser Permanente, delaying certain cash gifts until early 2026 may turn previously non-deductible contributions into tax-efficient charitable giving.
Group 2: Itemizers
Reasons for wanting to accelerate gifts into 2025
For those who currently itemize, 2025 may be the final year before new deduction restrictions apply, so timing could matter for long-time professionals whose pay and benefits have grown over many years at Kaiser Permanente.
What changes in 2026?
New charitable “floor” of 0.5% of AGI
Starting in 2026, charitable contributions are only deductible to the extent they exceed 0.5% of adjusted gross income (AGI). 3
For example:
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AGI: $300,000
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0.5% floor: $1,500
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Only the portion of your charitable contributions above $1,500 is deductible.
The 60% AGI cap on cash contributions remains
Itemizers can generally deduct up to 60% of AGI in cash contributions to qualifying public charities. 3 Any contributions above this limit may be carried forward for up to five years. This cap applies in addition to the new 0.5% floor starting in 2026.
Example for a higher-income itemizer:
Let’s say you:
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- Have AGI of $500,000
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- Are in the 35% federal tax bracket
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- Typically donate $25,000 per year
In 2025, before the new floor applies:
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- Subject to the usual AGI limits, you may be able to deduct nearly the full $25,000.
In 2026:
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- 0.5% of AGI = $2,500
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- Only contributions above $2,500 are deductible
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- Of your $25,000 in gifts, only $22,500 may be deductible
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- Losing a $2,500 deduction at a 35% tax rate may increase your federal income tax by $875
This difference can be especially important for donor-advised fund strategies or large gifts that Kaiser Permanente professionals may plan as part of a broader legacy or estate plan.
Who might itemize
Usually, itemizers have:
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- AGI above the national average
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- High state and local taxes
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- Deductible expenses such as meaningful mortgage interest
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- Long-term charitable goals and multi-year giving plans
For these individuals, accelerating larger gifts in 2025 may result in a more favorable deduction position than waiting until 2026.
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Which Group Do You Belong To?
Delaying charitable giving until 2026 might be worth considering if:
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- You typically use the standard deduction
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- You give $1,000 to $2,000 or more to charities each year
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- You do not expect to itemize in 2025
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- You could shift a cash gift from December 2025 to January 2026 and potentially use the new above-the-line deduction
Giving before year-end 2025 might be more appealing if:
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- You will itemize in 2025, or already know you will have substantial itemized deductions
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- You intend to make sizable, flexible charitable gifts (for example, to a major institution or to a donor-advised fund)
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- The new 0.5% AGI floor in 2026 would reduce the amount you can deduct
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- Frontloading your giving in 2025 allows you to keep more of your charitable deduction under the current rules
How We Help Clients Make These Decisions
At Wealth Enhancement, when we review charitable planning for employees and retirees from large companies such as Kaiser Permanente, we consider:
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- Income tax planning under the One Big Beautiful Bill Act
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- Health care and long-term care needs
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- Multigenerational strategies and estate planning
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- Business, stock option, or liquidity events that influence annual income
We help families:
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- Evaluate the likelihood that they will itemize in both 2025 and 2026
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- Set charitable giving goals over a three- to ten-year period
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- Compare donating in 2025 versus shifting gifts into 2026
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- Coordinate planning with estate planning attorneys and certified public accountants
How The Retirement Group Can Help Kaiser Permanente Employees
The Retirement Group can walk through the numbers with you and design a charitable giving approach that fits within your broader retirement strategy if you are unsure whether your 2025–2026 charitable plan should involve delaying or accelerating gifts as a current or former employee of Kaiser Permanente.
Call (800) 900-5867 to discuss how your charitable plans fit alongside your pension, 401(k), and other retirement benefits.
Next Steps
Before you write your next year-end charitable check:
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- Confirm whether you expect to itemize or take the standard deduction.
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- Review how the upcoming 2026 rules may affect your deductions.
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- Consider whether shifting gifts into 2025 or 2026 could improve your overall tax outcome.
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Reach out to Wesley Boudreaux or Kevin Landis, CFP®, at Wealth Enhancement, and consider coordinating with The Retirement Group to determine which path best aligns with your goals as a long-term employee or retiree from Kaiser Permanente.
Sources:
1. Forbes Advisor. ' Standard Deductions For 2024-2025 Tax Returns And Extra Benefits For People 65+ ,' by Taylor Tepper. Oct. 8, 2025.
2. “One Big Beautiful Bill (OBBB): Impact on Charitable Giving.”
Fidelity Charitable
, 2025,
https://www.fidelitycharitable.org/articles/obbb-tax-reform.html
.
3. “Navigating Charitable Giving in the Wake of New Tax Reform.”
National Philanthropic Trust
, 30 July 2025,
https://www.nptrust.org/philanthropic-resources/philanthropist/navigating-charitable-giving-in-the-wake-of-new-tax-reform/
.
Other Resources:
1. “New Limitations on Charitable Deductions Take Effect in 2026.”
Greenberg Traurig
, 28 Oct. 2025,
https://www.gtlaw.com/en/insights/2025/10/new-limitations-on-charitable-deductions-take-effect-in-2026
2. “The OBBBA Clock Is Ticking: Why 2025 Might be the Year to Act for Maximum Charitable Deductions.”
Vanilla
, 28 Oct. 2025,
https://www.justvanilla.com/blog/obbba-year-end-charitable-planning-2026
.
3. “Charitable Organizations: Substantiation and Disclosure Requirements.”
IRS
, 30 Sept. 2025,
https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-organizations-substantiation-and-disclosure-requirements
.
What is the 401(k) plan offered by Kaiser Permanente?
The 401(k) plan offered by Kaiser Permanente is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax basis, helping them build a nest egg for retirement.
How does Kaiser Permanente match contributions to the 401(k) plan?
Kaiser Permanente provides a matching contribution to the 401(k) plan, where they match a percentage of employee contributions, up to a certain limit, helping employees maximize their savings.
What are the eligibility requirements for Kaiser Permanente's 401(k) plan?
Employees of Kaiser Permanente are generally eligible to participate in the 401(k) plan after completing a specified period of service, which is outlined in the plan documents.
Can employees of Kaiser Permanente make changes to their 401(k) contributions?
Yes, employees of Kaiser Permanente can change their contribution amounts to the 401(k) plan at any time, subject to the plan's guidelines.
What investment options are available in Kaiser Permanente's 401(k) plan?
Kaiser Permanente's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.
Does Kaiser Permanente provide educational resources for employees regarding the 401(k) plan?
Yes, Kaiser Permanente offers educational resources and tools to help employees understand their 401(k) options and make informed investment decisions.
What is the vesting schedule for Kaiser Permanentes 401(k) matching contributions?
The vesting schedule for Kaiser Permanentes 401(k) matching contributions varies based on years of service, and employees can find specific details in the plan documents.
Can Kaiser Permanente employees take loans against their 401(k) savings?
Yes, Kaiser Permanente allows employees to take loans against their 401(k) savings, subject to the terms and conditions outlined in the plan.
What happens to the 401(k) plan when an employee leaves Kaiser Permanente?
When an employee leaves Kaiser Permanente, they have several options regarding their 401(k) plan, including cashing out, rolling it over to another retirement account, or leaving it in the plan if allowed.
Is there an automatic enrollment feature in Kaiser Permanente's 401(k) plan?
Yes, Kaiser Permanente may have an automatic enrollment feature that enrolls eligible employees into the 401(k) plan at a default contribution rate unless they choose to opt-out.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Kaiser Permanente offers a defined benefit pension plan providing retirement income based on compensation and years of service. The plan does not include a cash balance component. Employees can also contribute to additional retirement accounts with potential employer matching.
Kaiser Permanente announced significant layoffs, cutting over 100 IT roles in 2023, primarily impacting Northern California. This decision followed an earlier reduction of 49 workers in human resources services. These layoffs coincided with a major strike by over 75,000 employees protesting short-staffing and corporate outsourcing, highlighting ongoing labor tensions within the healthcare industry. In response to labor disputes, Kaiser Permanente ratified a new four-year contract in November 2023 with more than 85,000 healthcare workers. The agreement includes annual wage increases, a minimum wage boost, and more investments in employee training and hiring. This move aims to address worker burnout and staffing shortages, reflecting the pressures on the healthcare sector amidst economic challenges and rising operational costs.
Kaiser Permanente offers RSUs to its employees, vesting over a period and converting into shares upon vesting. Stock options are not typically part of their compensation package, focusing more on RSUs and other performance incentives.
Kaiser Permanente, a leader in integrated healthcare, has made several significant updates to its employee healthcare benefits in recent years, adapting to the changing economic, investment, tax, and political landscapes. In 2023 and 2024, Kaiser Permanente has emphasized connected care, combining care and coverage to simplify access to health services. Noteworthy updates include $0 copays for telehealth services, $15 chiropractic services (up to 20 visits per year), and enhanced rewards programs where employees can earn up to $150 in Healthy Rewards. The health plan also continues to support employees' mental and emotional well-being through free access to the Calm and myStrength apps, providing meditation and personalized mental health resources at no cost (Kaiser Permanente) (Kaiser Permanente).
Given the current economic uncertainties and evolving healthcare regulations, Kaiser Permanente's approach to healthcare benefits underscores the importance of comprehensive, accessible, and affordable healthcare for its employees. This strategy not only addresses immediate health needs but also enhances overall employee satisfaction and retention. Discussing healthcare benefits is crucial in today's climate as companies like Kaiser Permanente strive to balance cost management with the delivery of high-quality healthcare services. The company's proactive measures ensure that their employees are well-supported, promoting a healthier and more productive workforce (Kaiser Permanente) (Working at Kaiser Permanente).
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