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Real Estate Sales and Capital Gains Taxes For Evergy Employees

Healthcare Provider Update: Offers medical plans through Blue Cross Blue Shield of Kansas City, dental, vision, FSAs, and CVS Caremark for pharmacy benefits 5. As ACA premiums increase, Evergys union and non-union plans provide consistent coverage and cost control for employees. Click here to learn more

In recent years, the real estate market has seen a significant rise in property values, leading to an increase in homeowners facing capital gains taxes from the sale of their homes. CoreLogic reports that in 2023 , approximately 8% of U.S. home sales resulted in profits exceeding $500,000—a stark rise from nearly 3% in 2019.

This $500,000 profit margin is crucial as it ties into a significant tax exemption. Profits from the sale of a primary residence are exempt from capital gains taxes for married couples filing jointly up to a $500,000 ceiling, and $250,000 for single filers. It’s important to note that these exemption limits, set in 1997, have not been adjusted for inflation. The combination of this static threshold and climbing home prices means more homeowners are crossing these limits, triggering capital gains taxes.

Capital gains tax rates on profits that surpass these exemptions can vary from 0% to 20%, depending on the seller's income. In high-cost regions like Colorado, Massachusetts, New Jersey, New York, and Washington, the proportion of properties selling with profits over $500,000 has notably increased in 2023.

To qualify for the capital gains tax exemption, the Internal Revenue Service (IRS) mandates adherence to specific criteria. The 'ownership test' requires that the individual has owned the home for at least two out of the five years preceding the sale. Additionally, the 'residence test' stipulates that the property must have been the seller's principal residence for at least 24 months during that five-year period, which need not be consecutive.

Evergy employees can reduce their capital gains tax liability by accounting for significant home improvements, which increase the home's 'basis' or original purchase price. It’s crucial to differentiate between mere maintenance and actual enhancements; costs for upgrades like a new roof or an extension can be added to the property's basis, whereas minor repairs cannot.

When a home is sold, details such as the closing date and gross profits are reported to the IRS using Form 1099-S. Homeowners must maintain detailed records of all improvements, as these records are essential in the event of an IRS audit.

Given the current trends in the real estate market, understanding these tax implications and planning accordingly is crucial. This knowledge can significantly influence the financial outcome of a home sale, particularly in a steadily appreciating market.

As retirement approaches, it's vital for Evergy employees to strategize the timing of their home sales to optimize tax benefits. A 2022 study by the National Association of Realtors suggests that selling homes during years of reduced income can help retirees qualify for lower capital gains tax rates. This timing can lessen tax liabilities and fully leverage the exemptions, aiding in a smoother financial transition from an active working life into retirement.

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Discover effective strategies to minimize capital gains taxes when selling your high-value property. Learn how home improvements can increase your tax base and about the exemptions available for earnings up to $500,000 for couples and $250,000 for singles. Familiarize yourself with the IRS's ownership and residency requirements to efficiently manage your tax obligations and secure exemptions. Essential reading for homeowners contemplating a sale or residing in expensive areas.

Like pruning a mature tree, managing a home sale and its associated capital gains taxes requires careful planning. Proper timing and home improvement management can enhance financial outcomes just as strategic pruning fosters tree health and growth, ensuring the financial benefits of the sale are maximized for homeowners, especially those in the Evergy sector contemplating a post-career relocation.

What is the purpose of Evergy's 401(k) Savings Plan?

The purpose of Evergy's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to invest a portion of their income.

How can I enroll in Evergy's 401(k) Savings Plan?

You can enroll in Evergy's 401(k) Savings Plan by accessing the employee benefits portal or contacting the HR department for enrollment instructions.

What types of contributions can I make to Evergy's 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and, if eligible, catch-up contributions to Evergy's 401(k) Savings Plan.

Does Evergy offer a company match for contributions made to the 401(k) Savings Plan?

Yes, Evergy offers a company match on employee contributions to the 401(k) Savings Plan, which helps enhance your retirement savings.

What is the vesting schedule for the company match in Evergy's 401(k) Savings Plan?

The vesting schedule for the company match in Evergy's 401(k) Savings Plan typically follows a graded vesting schedule, which means you earn ownership of the match over a period of time.

How often can I change my contribution amount to Evergy's 401(k) Savings Plan?

You can change your contribution amount to Evergy's 401(k) Savings Plan at any time, subject to the plan's rules and limits.

Are there any fees associated with Evergy's 401(k) Savings Plan?

Yes, there may be administrative fees associated with Evergy's 401(k) Savings Plan, which are disclosed in the plan documents provided to employees.

What investment options are available in Evergy's 401(k) Savings Plan?

Evergy's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How can I access my account information for Evergy's 401(k) Savings Plan?

You can access your account information for Evergy's 401(k) Savings Plan through the plan's online portal or by contacting the plan administrator.

Can I take a loan from my Evergy 401(k) Savings Plan?

Yes, Evergy's 401(k) Savings Plan allows participants to take loans under certain conditions, subject to the plan's rules and limits.

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

For Evergy, the company offers both a pension plan and a 401(k) plan for its employees. The Evergy pension plan, often referred to as the defined benefit plan, requires employees to meet certain years of service and age qualifications to become eligible. The pension formula is based on the final average pay and years of service, which is typical for defined benefit plans. Non-union employees are generally enrolled in the 401(k) plan, which includes company matching contributions. The Evergy 401(k) Savings Plan, established in 1988, is the primary retirement savings option for non-union employees, while some union employees may still have access to a traditional pension plan. The specific eligibility, contribution limits, and matching details are provided in the company’s benefits documentation, typically through internal HR portals or detailed benefits guides.

Restructuring and Layoffs: Evergy announced a restructuring plan in early 2024 aimed at optimizing its operational efficiency. The plan included a reduction of approximately 5% of its workforce across various departments. This move was intended to streamline operations and reduce costs amid fluctuating energy prices and regulatory changes. Source: Bloomberg

Evergy grants stock options and RSUs as part of its employee compensation package. According to Evergy's 2022 Annual Report (Source: Evergy 2022 Annual Report, Page 45), stock options are typically offered to senior executives and key employees. RSUs are also granted to attract and retain talent, with specific vesting schedules outlined in the report. Evergy utilizes stock options and RSUs to align employee interests with company performance. The 2022 Compensation Disclosure (Source: Evergy 2022 Proxy Statement, Page 32) details that stock options are granted at an exercise price equal to the fair market value on the grant date. RSUs are granted based on performance metrics and time-based vesting criteria. In 2023, Evergy continued to offer stock options and RSUs as part of its compensation strategy. According to the 2023 Annual Report (Source: Evergy 2023 Annual Report, Page 50), stock options are given to senior management and high-performing employees. RSUs are awarded based on individual and company performance metrics.

Evergy offers a comprehensive health benefits package designed to support the well-being of its employees and their families. Their benefits include a choice of medical, dental, and vision plans, as well as life and accident insurance, long-term disability, and flexible spending accounts for medical and dependent care. The medical plans are administered through Blue Cross Blue Shield of Kansas City, and Evergy also offers SavRx for union employees as a pharmacy benefit plan (evergy.com) (Evergy | Newsroom). Specific healthcare-related acronyms used by Evergy include FSA (Flexible Spending Account) and HSA (Health Savings Account), both of which allow employees to set aside pre-tax dollars for medical expenses. Evergy’s health benefits include paid parental leave, which is part of their broader focus on work-life balance (evergy.com).

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

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