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Enhanced Estate and Gift Tax Benefits for Patrick Industries Employees in 2024

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Healthcare Provider Update: Healthcare Provider for Patrick Industries Patrick Industries primarily offers access to healthcare benefits through its association with large national insurance providers, including plans administered under the Affordable Care Act (ACA). Employees typically have options available through these plans, enabling them to choose coverage that best fits their healthcare needs. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, Patrick Industries employees may face substantial healthcare premium increases, as projections indicate that premiums for ACA marketplace plans could rise sharply by over 60% in some states. This surge in costs is driven by a confluence of factors, including the potential expiration of enhanced federal subsidies, ongoing medical inflation, and demand for high-cost specialty drugs. With more than 22 million Americans potentially seeing their out-of-pocket costs escalate by upwards of 75%, employees will need to strategically plan their healthcare decisions and financial frameworks to mitigate these anticipated increases. 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 Patrick Industries 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 Patrick Industries 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.

Patrick Industries 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 Patrick Industries 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 Patrick Industries 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 Patrick Industries 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 type of retirement plan does Patrick Industries offer to its employees?

Patrick Industries offers a 401(k) retirement savings plan to its employees.

Is participation in the 401(k) plan at Patrick Industries mandatory?

No, participation in the 401(k) plan at Patrick Industries is voluntary; employees can choose whether to enroll.

What is the employer match for the 401(k) plan at Patrick Industries?

Patrick Industries provides a matching contribution up to a certain percentage of employee contributions, which is detailed in the plan documents.

When can employees at Patrick Industries enroll in the 401(k) plan?

Employees at Patrick Industries can enroll in the 401(k) plan during the initial eligibility period or during annual open enrollment.

How can employees at Patrick Industries change their contribution rate to the 401(k) plan?

Employees can change their contribution rate by submitting a request through the company’s HR portal or by contacting the HR department at Patrick Industries.

Does Patrick Industries offer any educational resources for employees regarding the 401(k) plan?

Yes, Patrick Industries provides educational resources and workshops to help employees understand their 401(k) options and investment choices.

What investment options are available in the Patrick Industries 401(k) plan?

The Patrick Industries 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Are there any fees associated with the 401(k) plan at Patrick Industries?

Yes, there may be administrative and investment fees associated with the 401(k) plan at Patrick Industries, which are outlined in the plan documents.

Can employees at Patrick Industries take loans against their 401(k) savings?

Yes, Patrick Industries allows employees to take loans against their 401(k) savings, subject to the terms and conditions of the plan.

What happens to my 401(k) savings if I leave Patrick Industries?

If you leave Patrick Industries, you can roll over your 401(k) savings into another retirement account, cash out, or leave the funds in the plan, depending on the plan’s rules.

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For more information you can reach the plan administrator for Patrick Industries at , ; or by calling them at .

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