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

Enhanced Estate and Gift Tax Benefits for Newmont Employees in 2024

Healthcare Provider Update: Healthcare Provider for Newmont Corporation Newmont Corporation typically offers healthcare benefits through various insurance options for its employees, primarily utilizing the services of major health insurers like UnitedHealthcare and Anthem Blue Cross Blue Shield (BCBS), depending on the geographical locations of their operations. As a large mining company, Newmont is committed to providing comprehensive health coverage, which likely includes various plans that are tailored to meet the needs of its diverse workforce. Potential Healthcare Cost Increases in 2026 As the healthcare landscape shifts towards significant premium hikes in 2026, Newmont Corporation may face compounded pressures from rising costs. With the Affordable Care Act (ACA) premium increases projected to exceed 60% in some states, many employees could see their out-of-pocket costs soar dramatically-potentially by over 75%-if enhanced federal premium subsidies expire as anticipated. This combination of escalating medical costs and the threat of reduced subsidies poses a considerable challenge for employers like Newmont, who might need to navigate these complexities to maintain access to affordable healthcare for their workforce. Click here to learn more

As we transition into 2024, the landscape of federal gift, estate, and generation-skipping transfer (GST) tax laws has shifted significantly due to major inflation adjustments. For Newmont employees focusing on their financial strategies, these changes present valuable opportunities for enhancing intergenerational wealth transfer and achieving greater tax efficiency.

The Internal Revenue Service (IRS) has raised the lifetime exemption levels for the federal estate tax and the GST tax considerably. Individual exemptions have grown from $12.92 million in 2023 to $13.61 million, a $690,000 increase. Similarly, for married couples, the exemption has surged from $25.84 million to $27.22 million. These adjustments facilitate significant wealth transfers to heirs or direct gifts to grandchildren (via GSTs) without incurring federal estate or GST taxes.

The aligned increase in both the estate tax exemption and the generation-skipping tax exemption allows for direct asset transfers to grandchildren or into trusts for their benefit, helping families circumvent the double taxation of estate taxes on subsequent generations.

However, these augmented exemption amounts are set to expire on December 31, 2025, unless new legislation extends them. Initially quadrupled by the Tax Cuts and Jobs Act of 2017, these exemptions will nearly halve if not renewed. This impending reduction underscores the importance of proactive estate and gift planning soon.

For 2024, the federal gift tax annual exclusion has also seen a roughly 6% increase to $18,000 per recipient, up from $17,000 the previous year. This enables Newmont employees to devise strategic gifting plans that preserve estate value and promote wealth transfer between generations.

With the 2025 sunset date approaching, maximizing these increased exemptions is crucial to save on taxes. Consider utilizing the annual gift tax exclusion, which allows up to $18,000 per recipient in 2024 without impacting your lifetime estate or gift tax exemptions. Additionally, direct payments to medical providers for healthcare or educational institutions for tuition are exempt from gift taxes.

Including a gift tax return (IRS Form 709) is essential for contributions exceeding the annual exclusion, as part of comprehensive estate planning.

Newmont employees should also explore trust-based strategies like lifetime irrevocable trusts, which remove assets from the taxable estate, and Grantor Retained Annuity Trusts (GRATs), where the grantor receives annuity payments for a set period before the remainder passes to beneficiaries, potentially tax-free.

Spousal Lifetime Access Trusts (SLATs) are another option, allowing one spouse to leverage their gift tax exemption to establish a trust for the other, who then accesses the trust's assets.

Engaging with financial advisors is crucial to navigate the complexities of state-specific estate and gift tax laws, which vary widely and affect overall tax obligations and estate planning strategies.

As federal tax exemptions are about to sunset, this is a critical time for Newmont employees to review and possibly revise their estate and gifting strategies. These calculated decisions can lead to more efficient wealth transfer to future generations and significant tax savings.

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When making these choices, it is advisable for professionals and retirees to consult with advisors to formulate their plans in light of current tax rules and potential future changes.

For Newmont employees retiring or nearing retirement, consider establishing a Qualified Personal Residence Trust (QPRT) in 2024. A QPRT allows homeowners to transfer their residence into a trust, residing there for a designated period, potentially reducing the taxable value of their estate. This strategy is particularly valuable ahead of potential reductions in exemption amounts post-2025, enabling high-value assets to be transferred at a reduced tax cost.

Like a gardener preparing for a fruitful season, the upcoming changes in inheritance and gift tax laws in 2024 are an excellent opportunity for Newmont employees to strategically transfer wealth and make impactful gifts. The expanded exemption levels, akin to fertile soil, facilitate the management of estates to minimize tax implications and maximize growth for future generations. Acting now, before these favorable conditions sunset in 2025, is like planting a crop at the optimal time to ensure a bountiful harvest for years to come.

What is the 401(k) plan offered by Newmont?

Newmont offers a 401(k) plan that allows employees to save for retirement by contributing a portion of their paycheck before taxes are taken out.

How does Newmont match employee contributions to the 401(k) plan?

Newmont provides a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions up to a certain limit.

Can employees at Newmont change their 401(k) contribution amounts?

Yes, employees at Newmont can change their 401(k) contribution amounts at any time, subject to the plan's rules.

What investment options are available in Newmont’s 401(k) plan?

Newmont’s 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

When can Newmont employees start contributing to the 401(k) plan?

Newmont employees can typically start contributing to the 401(k) plan after completing a specified period of employment, often within their first month.

Does Newmont allow for loans against the 401(k) plan?

Yes, Newmont allows employees to take loans against their 401(k) balance under certain conditions, as outlined in the plan documents.

What happens to my 401(k) account if I leave Newmont?

If you leave Newmont, you can choose to leave your 401(k) account with the company, roll it over to another retirement account, or cash it out, subject to taxes and penalties.

How does Newmont inform employees about their 401(k) plan options?

Newmont provides information about the 401(k) plan through employee orientation, benefit guides, and online resources available on the company’s intranet.

Is there a vesting schedule for Newmont's 401(k) matching contributions?

Yes, Newmont has a vesting schedule for matching contributions, meaning employees must work for a certain period to fully own the matching funds.

Can Newmont employees access their 401(k) funds while still employed?

Generally, Newmont employees cannot access their 401(k) funds while still employed, except through loans or hardship withdrawals as permitted by the plan.

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

Name of Pension Plan: Newmont Pension Plan Years of Service Requirement: 5 years of service required for eligibility. Age Qualification: Participants must be at least 55 years old to begin receiving benefits, with eligibility to retire at age 65. Pension Formula: The pension is calculated based on a formula that considers the average salary during the highest-paid years of service and years of service. Name of 401(k) Plan: Newmont 401(k) Retirement Savings Plan Eligibility Criteria: Employees are eligible to participate in the 401(k) plan after 30 days of employment.

Restructuring and Layoffs: Newmont Mining Corporation announced a significant restructuring plan in early 2024. The company is streamlining its operations and has decided to reduce its workforce by approximately 10% to enhance efficiency and cut costs. This move comes as part of a broader strategy to adapt to fluctuating gold prices and increasing operational costs. Given the current economic climate, where inflation and market volatility impact resource extraction industries, this restructuring is crucial for maintaining financial stability and competitiveness.

Newmont Corporation offers stock options and RSUs as part of its employee compensation package. For 2022, Newmont granted RSUs to senior executives and key employees, which are subject to performance and time-based vesting criteria. The stock options at Newmont are typically granted with a 10-year term and vest over a period of 3 to 5 years.

Benefits Overview: Newmont’s official website provides details about their employee benefits, including health insurance, wellness programs, and retirement plans. Health Benefits: Typically include medical, dental, and vision coverage, with options for health savings accounts (HSAs) or flexible spending accounts (FSAs). Newmont often emphasizes wellness initiatives and employee support programs. Acronyms: HSAs (Health Savings Accounts), FSAs (Flexible Spending Accounts), EAP (Employee Assistance Program)