PPG Industries Employees: Three Key Strategies for Tax-Free Giving to Your Family

Healthcare Provider Update: Healthcare Provider for PPG Industries: PPG Industries, a global supplier of paints and coatings, typically partners with prominent healthcare providers in the corporate sector to offer comprehensive health insurance plans for its employees. Specific providers can vary by region but may include nationwide insurers such as UnitedHealthcare, Anthem Blue Cross Blue Shield, or Cigna, depending on the company's benefits structure. Potential Healthcare Cost Increases for PPG Industries in 2026: In light of anticipated changes in the healthcare landscape, PPG Industries may face significant healthcare cost increases in 2026. As record premium hikes are projected, with some states experiencing increases over 60%, the loss of enhanced federal premium subsidies could exacerbate financial strains on employees. Reports indicate that over 22 million participants in the ACA marketplace might see an astounding rise in out-of-pocket premiums, with average hikes anticipated to exceed 75%. This challenging environment could compel PPG to reevaluate its employee health benefits strategy to mitigate costs and maintain adequate coverage. Click here to learn more

'Gifting is a great way to transfer wealth but if it is not done correctly, it can result in taxes being paid on the wrong account,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

“High net worth individuals are looking for ways to help their families now rather than later, but they need to make sure their generosity is consistent with a good financial plan,” says Mavar.

In this article, we will discuss:

• The tax consequences of giving away money during one’s lifetime as opposed to on death.

• Strategies for enhancing tax exemptions when giving out large amounts of money.

• The short and long-term effects of gifting on both the donor and the recipient.

The employees of PPG Industries companies are often involved in the financial planning and therefore try to make significant gifts of money to their families while they are still alive rather than only through bequests after death. This trend is easy to explain: it is fun to see the results of such generosity in the modern world, for instance, to help with buying a home in the current real estate market or to pay for college for grandchildren. However, this approach comes with its own set of challenges, especially in terms of tax efficiency.

Giving Wisely: How to Increase the Impact of the Gift While Minimizing the Tax Risk

One of the main benefits of bequeathing assets like stocks is the “step up” in basis, which sets a new value of the asset at the market price at the time of the owner’s death. This means that heirs can sell the inherited stocks at the current high prices without having to pay capital gains tax on the proceeds as long as the sale price equals the stepped up basis. On the other hand, gifts of stocks during one’s lifetime are not exempt from this adjustment. The original purchase price, or basis, stays there, which can result in very high capital gains taxes if the stock is sold when market prices are high.

However, if the gift recipient’s income is below the following limits: $47,025 for singles and $94,050 for married couples filing jointly, they can sell these stocks without having to pay capital gains taxes on them. This creates a perfect situation for PPG Industries employees to help their family members who are starting their careers or earn less than these limits. It is important to avoid such transactions as they may lead to higher taxable income and, therefore, taxes.

Taking Full Advantage of the Gift Exemptions

According to the current rules, an individual can make a gift of up to $18,000 per recipient in 2024 without having to report the gift on his or her tax return and have it count against the taxpayer’s lifetime gift tax exclusion. In the case of married couples, the split gifting technique enables each spouse to make an $18,000 gift to the same person, thus enabling the two to give $36,000 every year tax free. In case gifts are made which are more than these figures, the excess must be reported on IRS Form 709, however, taxes are not due until the exclusion amount is exceeded which is currently $13.61 million. The annual exclusion is also available for gifts that are made during the year of death and in the year following death.

Another way to avoid the annual gift tax exemption is to make the payment directly for the health or education of another person. For instance, payments made directly to educational institutions are not considered as part of the $18,000 annual exclusion for gifts and, therefore, PPG Industries employees can provide generous support without compromising their lifetime gift exemption. This way, the money is used precisely for its intended purpose and there is no chance that the recipient will spend it on something else or become financially dependent.

Assessing the Financial Impacts of Gift Giving

This means that PPG Industries employees should also consider the tax consequences of the financial gift that they are planning to give to their recipient. Support should always be given with the aim of empowering the recipient, not enabling them or making them dependent. This assessment is important in order to determine if the giving is helping or harming the recipient.

The donor’s financial stability is just as important as the recipient’s. Such gifts can be made sustainable by a financial plan that has been developed by professional advisors. In this way, PPG Industries employees can ensure that they are able to give in a way that is consistent with their financial future.

In conclusion, it is an excellent practice to give but it is advisable to know the strategies that can be employed in order to reduce the amount of tax paid and at the same time, achieve the desired results. By looking at the short and long-term consequences of their generosity, PPG Industries employees can make reasonable decisions that will benefit them and their families. For those who are involved in the process of financial gifting, more specific plans and options can be provided by thorough planning tools and the advice of financial professionals.

Articles you may find interesting:

An IRA Qualified Charitable Distribution (QCD) can also be a useful approach, especially for retirees. An individual who has reached the age of 70½ can transfer up to $100,000 each year from his or her IRA to a charitable organization. This can help achieve charitable goals while also potentially leaving the donor in a lower tax bracket, as the donation is not included in taxable income and satisfies RMDs. This approach is in harmony with strategic estate planning and holds the advantage of not affecting non-charitable beneficiaries.

Sources:

• Internal Revenue Service. 'Gift Tax.' IRS.gov, 2024,  www.irs.gov/businesses/small-businesses-self-employed/gift-tax .

• Investment Company Institute. '2024 Annual Report on U.S. Retirement Market.' ICI.org, 2024,  www.ici.org/research .

• Wealth Enhancement Group. 'Estate Planning and Wealth Transfer Strategies.' WealthEnhancement.com, 2024,  www.wealthenhancement.com/insights .

• U.S. Securities and Exchange Commission. 'Understanding Capital Gains Tax.' SEC.gov, 2024,  www.sec.gov/investor .

• National Association of Estate Planners & Councils. 'Best Practices in Lifetime Wealth Transfers.' NAEP.org, 2024,  www.naepc.org/articles .