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Enhanced Estate and Gift Tax Benefits for Tetra Tech Employees in 2024

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Healthcare Provider Update: Tetra Tech's Healthcare Provider Insight Tetra Tech currently partners with various health insurance providers to deliver healthcare benefits to its employees, including prominent insurers in the marketplace. As employees prepare for upcoming benefits changes, it is critical to understand the intricacies of their coverage and options. In 2026, Tetra Tech employees are likely to experience significant increases in healthcare costs, driven by broader industry trends. With anticipated premium hikes in the Affordable Care Act (ACA) marketplace reaching over 60% in some states, many employees could see their out-of-pocket expenses soar. Factors contributing to this include the potential expiration of enhanced federal subsidies and broader medical cost inflation, which are expected to add substantial financial pressure on individuals. Consequently, Tetra Tech employees should proactively review their healthcare options and budget for potentially higher expenditures in the coming year, ensuring they are equipped to handle these economic challenges. 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 Tetra Tech 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 Tetra Tech 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.

Tetra Tech 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 Tetra Tech 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 Tetra Tech 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 Tetra Tech 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 Tetra Tech's 401k plan?

Tetra Tech's 401k plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or after-tax (Roth) basis.

How does Tetra Tech match employee contributions to the 401k plan?

Tetra Tech offers a matching contribution to employee 401k accounts, which helps employees maximize their retirement savings.

When can I enroll in Tetra Tech's 401k plan?

Employees at Tetra Tech can enroll in the 401k plan during the initial onboarding process or during the annual open enrollment period.

What are the contribution limits for Tetra Tech's 401k plan?

Tetra Tech follows IRS guidelines for contribution limits, which may change annually. Employees should check the latest limits to ensure they are maximizing their contributions.

Can I change my contribution amount to Tetra Tech's 401k plan at any time?

Yes, Tetra Tech allows employees to change their contribution amounts at any time, subject to certain restrictions based on the plan's rules.

What investment options are available in Tetra Tech's 401k plan?

Tetra Tech's 401k plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

Is there a vesting schedule for Tetra Tech's 401k matching contributions?

Yes, Tetra Tech has a vesting schedule for matching contributions, meaning employees must work for a certain period before they fully own the matched funds.

How can I access my Tetra Tech 401k account?

Employees can access their Tetra Tech 401k account online through the plan's designated website or by contacting the plan administrator for assistance.

What happens to my Tetra Tech 401k if I leave the company?

If you leave Tetra Tech, you have several options for your 401k, including rolling it over to another retirement account, cashing it out, or leaving it in the Tetra Tech plan if allowed.

Does Tetra Tech offer financial education resources for employees regarding the 401k plan?

Yes, Tetra Tech provides financial education resources, including workshops and access to financial advisors, to help employees make informed decisions about their 401k savings.

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

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