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

Essential 2024 Tax Break Insights for Nordson Employees: What You Need to Know

Healthcare Provider Update: Nordson offers a comprehensive benefits package to its U.S. employees, including medical, dental, vision, and prescription coverage. The company supports employee wellness through HSAs, FSAs, and a wellbeing program. Retirement benefits include both traditional and Roth 401(k) options, life insurance, and disability coverage. Nordson also provides paid time off, adoption reimbursement, and tuition assistance5. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

The corporate landscape has seen significant upheavals with job losses spanning various industries, touching even the most robust workforces. In 2023, the technology sector alone saw over 260,000 job terminations, with major players like Google, Amazon, and Microsoft at the forefront. Similarly, Citigroup reported about 20,000 job cuts, equating to roughly 10% of its workforce, with comparable reductions at UPS, Macy's, and even Sports Illustrated.

For Nordson employees, these unsettling times bring crucial financial decisions to the forefront, particularly concerning the management of 401(k) plans, a critical component of many workers' life savings. In this climate, financial advisors are more essential than ever, aiding employees in understanding their options amid new fiduciary regulations from the Department of Labor, emphasizing the importance of informed asset transfers to individual retirement accounts (IRAs).

One often-overlooked strategy is the net unrealized appreciation (NUA) tax deduction, particularly valuable for employees holding Nordson stock in their 401(k)s. As stock values potentially increase, this equity can represent a significant part of retirement plans and offer substantial tax savings if managed correctly.

Under the NUA tax benefit, Nordson company shares within a 401(k) can be part of a qualified lump-sum distribution. At distribution, the stock's appreciation is taxed at the favorable long-term capital gains rate, rather than the higher regular income tax rate—this applies even if the stock was held for less than a year. However, any appreciation after the distribution and before sale is taxed as ordinary income unless held for at least one year.

The NUA benefit is contingent on specific conditions. Firstly, a qualifying event like a layoff, retirement, or other separation from the company must trigger it. Other qualifying events include death, disability (only for self-employed), and reaching age 59½. Secondly, the distribution must occur within one calendar year following the triggering event as part of a qualified lump-sum distribution.

Consider the case of John, a 62-year-old who was recently laid off from his tech company. John had $1 million in his 401(k), $800,000 of which was in company stock, originally purchased for $100,000. The market value of these shares had significantly appreciated. Opting for a lump-sum distribution, John transferred the $800,000 in company stock to a brokerage account and rolled the remaining $200,000 into an IRA tax-free. He paid ordinary income tax only on the original $100,000 cost basis, while subsequent sales of the stock were taxed at lower capital gains rates.

This strategic approach not only leverages a significant tax advantage but also reduces the volume of assets rolled over to an IRA, impacting future required minimum distributions (RMDs). Financial advisors need to assess the potential for stock appreciation within 401(k) plans to determine the prudence of such distributions.

As we progress through the early months of the year, advisors should prepare for potential NUA transactions, requiring careful execution. Understanding these financial strategies can transform the adverse event of a layoff into a substantial tax advantage.

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Nordson employees and those affected by job cuts should consider resources like Ed Slott's 2-Day IRA Workshop for deeper insights into retirement planning and IRA management. For more information and registration, visit IRAhelp.com. Proactive financial planning can significantly mitigate the impact of job losses and optimize retirement outcomes.

For individuals aged 60 and older, the 2024 tax year brings an increased standard deduction, providing an additional tax benefit for retirees, especially those aged 65 and above. The increased standard deduction amounts to $1,750 for single filers and $1,400 for married couples filing jointly, allowing for more disposable income in retirement. This information is crucial for effective budget planning and is based on recent IRS updates.

Navigating the financial aftermath of layoffs with adept 401(k) management and taking advantage of the NUA tax deduction is akin to a skilled captain steering a ship through challenging waters. Just as the captain utilizes natural elements for a smoother, faster voyage, retirees can adeptly navigate their financial landscape, minimizing tax liabilities while maximizing retirement savings. A sound financial strategy can give you confidence in your retirement plans, much like a well-navigated maritime journey helps ensure a safe and swift passage.

How does the Nordson Corporation Salaried Employees Pension Plan calculate an employee's Accrued Benefit, and what factors need to be considered to ensure accurate pension benefits at retirement? Understanding the components that contribute to the calculation is crucial for employees planning their retirement through Nordson Corporation.

Accrued Benefit Calculation: Nordson Corporation calculates an employee’s Accrued Benefit based on the Final Average Monthly Pay, the number of Years of Benefit Service, and an estimate of the employee’s Social Security benefit. The formula used includes a reduction if an employee has less than 30 Years of Benefit Service(Nordson Corporation_Feb…).

What are the eligibility criteria for joining the Nordson Corporation Salaried Employees Pension Plan, and how can employees determine their vesting status as they approach retirement? It is essential for employees to be aware of the timelines and requirements necessary to fully benefit from the retirement plan offered by Nordson Corporation.

Eligibility Criteria: Employees become eligible for the Nordson Corporation Salaried Employees Pension Plan after completing a Year of Eligibility Service, which requires at least 1,000 hours of work annually. Vesting occurs after completing 5 Years of Vesting Service, ensuring full entitlement to benefits(Nordson Corporation_Feb…).

In what ways can employees at Nordson Corporation access information about their pension plan benefits, and what steps should they follow if they believe their claims for benefits were denied? Knowing the appropriate channels for receiving information can help employees navigate any discrepancies with their pension benefits.

Accessing Pension Information and Claiming: Employees can access their pension plan details through John Hancock’s website or phone service. If a benefit claim is denied, employees can follow the claims procedure outlined by Nordson, which includes submitting a written request and appealing decisions(Nordson Corporation_Feb…).

What options does Nordson Corporation provide for early retirement, and how can employees assess whether an early retirement is financially feasible for them? Understanding the implications of early retirement can significantly impact an employee's long-term financial security.

Early Retirement Options: Nordson Corporation offers early retirement options starting at age 55, with at least 5 years of vesting service. Benefits are reduced by 6% per year for each year that early retirement is taken before the Normal Retirement Date(Nordson Corporation_Feb…).

How does Nordson Corporation's pension plan ensure that employees receive monthly benefits post-retirement, and what are the different forms of payment available to retirees? Grasping the payment structures may help employees make informed decisions regarding their retirement income.

Monthly Benefit Payments: Employees retiring from Nordson Corporation can choose various payment methods, including a Life Annuity or a 50% Joint & Survivor Annuity for married participants. Payments start after the Normal Retirement Date or early retirement, depending on the selected option(Nordson Corporation_Feb…).

What rights do participants have under the Employee Retirement Income Security Act (ERISA) concerning their Nordson Corporation pension plan, and what should they do to enforce these rights effectively? Employees should be aware of their rights to protect themselves during the benefit claiming process.

ERISA Rights: Under ERISA, participants have the right to receive information about their benefits, file claims, and sue if benefits are denied. Plan fiduciaries must act in the best interest of employees, and participants are protected from retaliation for asserting their rights(Nordson Corporation_Feb…).

How does the termination or amendment of the Nordson Corporation Salaried Employees Pension Plan affect employees' accrued benefits, and what protections are in place? Awareness of these scenarios can help employees better plan their financial futures in relation to their pensions.

Plan Termination or Amendment: If the plan is terminated or amended, accrued benefits cannot be reduced, and employees’ benefits become 100% vested. This ensures that employees retain the benefits they have earned up to the point of the change(Nordson Corporation_Feb…).

In what situations might employees at Nordson Corporation lose their pension benefits, and what preventative actions can they take to ensure they remain eligible for these benefits? Understanding the risks involved in pension plans can aid employees in maintaining their retirement security.

Loss of Pension Benefits: Employees may lose pension benefits if they leave Nordson Corporation before vesting or fail to select appropriate survivor options. Keeping the Plan Administrator informed of current contact information is crucial to avoid losing benefits(Nordson Corporation_Feb…).

How can employees at Nordson Corporation address questions or concerns related to their retirement planning, and what resources are available for personalized assistance? Access to proper resources is vital for employees needing guidance throughout their retirement journey.

Retirement Planning Resources: Employees can contact the Plan Administrator or use John Hancock’s automated services to address questions about retirement planning. Personalized assistance is available for any specific pension-related inquiries(Nordson Corporation_Feb…).

What steps should employees take to contact Nordson Corporation or the Plan Administrator to get detailed information about their pension plan, and what should they include in their inquiries to ensure a comprehensive response? Effective communication techniques can significantly enhance employees' understanding of their benefits. These questions have been designed to help employees of Nordson Corporation navigate their pension plan and retirement effectively.

Contacting the Plan Administrator: Employees can contact Nordson Corporation or the Plan Administrator by calling the number listed in the Summary Plan Description. It’s advisable to provide detailed questions regarding benefit amounts, vesting status, or payment options to receive a thorough response(Nordson Corporation_Feb…).

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

Pension Plan Name: Nordson Corporation Retirement Plan Qualification Criteria: Years of Service: Generally requires a minimum of 5 years. Age Qualification: Typically eligible at age 65. Pension Formula: Formula is based on a percentage of final average salary and years of service. 401(k) Plan Name: Nordson Corporation 401(k) Savings Plan Qualification Criteria: Employees are eligible to participate after completing 30 days of service. Company Contribution: Nordson matches employee contributions up to a certain percentage.

News: In early 2024, Nordson Corporation announced a significant restructuring plan, including a reduction of approximately 5% of its global workforce. This move was part of a broader strategy to streamline operations and improve overall efficiency. The company also updated its employee benefits package, including modifications to its pension and 401k plans. Specific changes included adjusting the company’s matching contributions and modifying pension benefit accrual rates.

Nordson Corporation (NDSN) provides stock options and RSUs to employees as part of their compensation packages. Stock options at Nordson Corporation (NDSN) are generally granted to senior executives and key employees based on performance and tenure. RSUs are also awarded to employees as a form of long-term incentive, typically vesting over a period of time.

Benefits Overview: Nordson's official site provides information on various health benefits including medical, dental, and vision insurance plans. Employees have access to comprehensive health coverage, which typically includes options for health savings accounts (HSAs) and flexible spending accounts (FSAs). Recent Updates: The company has updated its benefits plans over the years. Specific changes for 2022, 2023, and 2024 can be found in their annual benefits summaries or employee communications.