Key individual tax changes from Trump's 'big beautiful' bill
Current law vs. final legislation
Current law | Final legislation |
---|---|
Standard deduction | |
$15,000 single; $30,000 married filing jointly for 2025 | $15,750 single; $31,500 married filing jointly for 2025 |
'Bonus' deduction for older adults | |
$1,600 for age 65 and older for 2025; $2,000 unmarried / not surviving spouse for 2025 | $7,600 for age 65 and older; $8,000 for unmarried / not surviving spouse; both from 2025 through 2028 |
State and local tax deduction (SALT) | |
$10,000 limit through 2025 | $40,000 limit for 2025; increases by 1% through 2029; reverts to $10,000 in 2030 |
Child tax credit | |
Max credit of $2,000 per child through 2025; refundable portion $1,700 for 2025 | Max credit of $2,200 per child; refundable portion $1,700 for 2025 |
Estate and gift tax exemption | |
$13.99 million single; $27.98 million married filing jointly for 2025 | $15 million single; $30 million married filing jointly for 2026 |
Tax on tips | |
N/A | Deduct up to $25,000 per year from 2025 though 2028 |
Overtime pay | |
N/A | Deduct up to $12,500 per taxpayer from 2025 through 2028 |
Auto loan interest | |
N/A | Deduct up to $12,500 per taxpayer from 2025 through 2028 |
Auto loan interest | |
N/A | Deduct up to $10,000 of annual interest on new loans from 2025 through 2028 |
Trump Accounts for child savings | |
N/A | One-time $1,000 credit to account per child born between 2025 through 2028 |
Charitable deduction for non-itemizers | |
N/A after 2021 | $1,000 single; $2,000 married filing jointly; permanent after 2025 |
Source: CNBC
As Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group, points out, 'It is crucial for all employees, especially those in the Baxter International sector, to proactively plan their finances to avoid the unexpected costs of health crises.
According to Michael Corgiat of The Retirement Group, a division of Wealth Enhancement Group, 'It is important for Baxter International employees to understand the bigger economic implications of health issues as reported in this article to have robust financial plans to manage the risks of healthcare adverse events.
In this article, we will discuss:
1. The Economic Impact of Cancer: Examining the direct and indirect financial challenges faced by patients, including increased medical costs and loss of income.
2. Personal Stories of Financial Struggle: Highlighting individual cases, such as Gwendolyn Jackson, to illustrate the broader financial implications of a cancer diagnosis.
3. Solutions and Support Systems: Exploring available resources and potential strategies to alleviate the financial burdens on patients and their families.
When one is diagnosed with cancer, it is not only a life-threatening disease that affects the patient’s health but also their finances. Many patients are faced with the financial challenges of higher out-of-pocket costs, reduced income and higher cost of drugs. This article looks at the huge financial impact that cancer has on Americans and Baxter International employees, using cases, numbers and the overall trend of this new epidemic.
The Story of Gwendolyn Jackson and the Personal Toll of Cancer Gwendolyn Jackson had no problems paying her bills before being diagnosed with cervical cancer. She owned her house, had insurance and had a job. But when she was 53 years old, her life changed drastically when she was told she had cervical cancer. Jackson lost her work as a housing coordinator due to the physical toll of chemotherapy and a subsequent stroke, and she is already facing tens of thousands of dollars in medical debt.
Her vehicle was repossessed, and she received an eviction notice. Jackson recalls, 'I woke up one morning, and I was a top case manager. Then I was losing everything.' Increasing Prices and Economic Difficulties Cancer is becoming an increasingly expensive disease in the United States due to the rising prices of drugs and medical care. Iqvia’s Institute for Human Data Science predicts that 55% of cancer medications launched between 2019 and 2023 will cost more than $200,000 a year.
Those of working age, like those at Baxter International, have several difficulties and are more likely to report financial hardship after diagnosis. Sixty percent of cancer survivors of working age have money problems, according to the study. Many struggle to pay for medical care, and this often results in debt accumulation — payday loans, credit card debt, and so on. About 40 percent of medical GoFundMe campaigns are for cancer. Radiation oncologist Dr. Reshma Jagsi of Emory University School of Medicine and the Winship Cancer Institute says, “We do not want to believe that people with cancer in this country have to cut back on medications, doctor visits, lose their home, or cut back on food.” The Financial Toxicity Concept Financial toxicity is the term used to describe the financial burden of cancer and its treatment. It is not just the cost of treatment and the expensive drugs but there are many other costs as well.
Patients who receive chemotherapy and other treatments may not have enough energy to work, thus, losing their employer-sponsored health insurance and income. The financial consequences may last for many years. It is always a shock. As Baxter International Employees planning for these unexpected expenses is crucial. Dr. Fumiko Chino, a radiation oncologist at Memorial Sloan Kettering Cancer Center adds, “It can cause this wealth shock that can ripple on.” Her husband died of cancer more than 10 years ago and she still gets phone calls from debt collectors about his debts. She faced the financial burden personally.
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The Growing Price of Anticancer Drugs The chief problem facing Baxter International employees is the rising cost of healthcare and cancer medications. These costs are either rising at the rate of inflation or have very high initial prices. The prices of common cancer medications can be as high as six digits. For example, Medicare beneficiaries will have to pay $5,247 out-of-pocket for the leukemia therapy Imbruvica in 2022, which is more than $213,000 per year. Tagrisso lung cancer medication is approximately $208,000 per year.
Some employer-based plans have patients pay a portion of the drug costs, shifting the burden of rising healthcare costs to patients. Cancer patients of working age with private insurance had out-of-pocket expenses rise 15% between 2009 and 2016. Many patients have to pay for parking, hotel, child care, and transportation, among other costs. The Broader Effect on Earnings Besides the cost of treatment, cancer has a major negative impact on the financial well-being of the affected individuals. It is still a serious matter that makes many have to leave their workplaces or even quit their jobs altogether. Chemotherapy patients are four times more likely to quit than patients who do not receive the treatment within the first four years.
This burden usually affects families as a whole since relatives may have to take care of the patient or financially support the family. The hardship faced by Erica Olenski is illustrative. Olenski’s young son August was diagnosed with brain cancer in 2019. She cut back drastically on her working hours, spending time traveling back and forth between McKinney, Texas, and Dallas for August’s treatments, which entailed weekly hospital stays.
The family’s income was lowered even though Medicaid paid for the medical expenses. “It was the transport, gas, tolls, food at the hospital because you can’t buy groceries like you would at home,” says Olenski. “There’s a pragmatic reality of living that lifestyle that carries an enormous cost.” Financial Repercussions and Insolvency Financial strain may have serious implications for Baxter International employees and may include bankruptcy. Olenski had to liquidate most of her 401(k) to pay off the debts. She later got divorced and lost $20,000 during the divorce process. In 2023, August’s illness returned, and she had to use her credit cards to pay for things like car and mortgage. She finally filed for bankruptcy, and was over $100,000 in debt.
Cancer’s Wider Financial Effects Dr. Scott Ramsey, the director of the Hutchinson Institute for Cancer Outcomes Research at Fred Hutchinson Cancer Center, and his team found that cancer patients have more credit card late payments, mortgage defaults, and other financial issues than non-cancer patients. According to Ramsey, patients who incur more out-of-pocket expenses are more likely to delay starting their prescriptions or stop taking them altogether.
According to his research, cancer patients who file for bankruptcy have an 80 percent higher chance of dying than those who do not. “It was actually kind of bad for the survival,” he said. Gwendolyn Jackson’s Persistent Battle When Jackson’s father was diagnosed with lung cancer 10 years ago, she saw for herself how cancer affects people’s finances. Inspired by families who had to sell their jewelry and savings to pay for treatment, she started a charity organization to help cancer patients and their families. She is currently in a comparable situation. Her diagnosis has greatly impacted Jackson’s life. She has gone from a social person who used to jog daily to a person with a very busy schedule of doctor’s appointments.
Her 83-year-old mother had to pay $800 a month for her health insurance until it became unaffordable after she quit her job in 2022. Jackson then chose a less expensive insurance plan, but the costs for tests, chemotherapy, and physical therapy kept on rising. While waiting for long-term disability, she used her credit cards and received money from friends and relatives. She moved in with her daughter and shared a room with her grandson after losing her house and car. “It broke me,” Jackson claims. Looking for Guidance and Assistance Despite substantial holes in the safety net, campaigners and doctors are looking for patchwork solutions to the increasing problems.
More cancer facilities are now able to help patients who have financial problems and other needs like food and transportation. The problem is that there is not much funding and not many people are aware of these options. Only a few patients who turn to crowdfunding platforms like GoFundMe can raise the needed amount through the platform. Cancer Care Kansas had not considered Jackson for aid because she earned too much money.
She was able to avoid using cash from her nonprofit because she had to. She could not manage the demands and her efforts to work remotely were in vain. Jackson is now on disability, so she helps pay for groceries, gas, utilities, and prescription drugs. She has just been informed that she would be eligible for Medicare in a few months’ time, but this will leave her with around $38,000 of medical debt that she has no way of paying after monthly expenses are covered.
Jackson’s cancer has not responded to chemotherapy, so she is still undergoing treatment through a clinical trial. Despite the fact that she has less than 18 months to live, debt collectors are still after her for the medical bills. “They’ll give you calls and letters,” she continues. “But I can’t pay for what I don’t have.” In Summary Cancer impacts the lives of American households in a real and significant way. The costs of prescription drugs, the out-of-pocket costs, and the lower incomes are a financial burden that many patients and their families cannot bear.
The stories of people like Gwendolyn Jackson and Erica Olenski show that there is a need for better financial support and ways to help people cope with the economic impact of cancer. This is becoming more important as the cost of cancer treatment rises, so patients can focus on their health without worrying about the financial impact. It is important for Baxter International employees to always be prepared for any unexpected medical expenses.
Medicare enrollees paid $5,460 on average out-of-pocket for healthcare in 2021, according to a recent Kaiser Family Foundation report released in May 2023. Healthcare costs were substantially higher for people with serious diseases like cancer. Such costs can strip retirement funds quickly, and it is crucial to understand and prepare for healthcare expenses in later years. Older retirees may struggle with financial issues that threaten their financial well-being and quality of life as healthcare costs rise (KFF, 2023). Disclosure: This information is not intended as recommendation. The opinions are subject to change at any time and no forecasts can be guaranteed. Investing involves risk, including possible loss of principal.
Sources:
1. 'Financial Hardship.' American Cancer Society. www.cancer.org. The following is a reference from the American Cancer Society on financial difficulties encountered by cancer patients and the need for support and resources.
2. 'The Economic Burden of Cancer.' The Cancer Atlas. canceratlas.cancer.org. This article presents the costs of cancer in the US and EU and shows that the costs are high.
3. 'The Financial Impact of Cancer: How to Manage the Costs.' Cancer Survivors Network. csn.cancer.org. This narrative focuses on financial assistance and community resources for cancer patients with a focus on long-term financial planning.
4. 'CRFT Brings Distress, Bankruptcy, and Mortality.' Family Reach. www.familyreach.org. This article explores the financial devastation that cancer can cause and the consequences of heightened chances of bankruptcy and death.
5. 'Legal & Financial Impacts of Cancer.' MD Anderson Cancer Center. www.mdanderson.org. This source provides information on the legal and financial challenges of cancer patients, including information on managing health insurance and healthcare costs.
What are the eligibility requirements for participating in the Baxter International Inc. Pension Plan, and how have they impacted employees who were hired after the participation closed date? Employees of Baxter International Inc. should be aware of the specific conditions that dictate eligibility to participate in the pension plan, as these factors determine the benefits they can receive upon retirement. Understanding how these age and service requirements are defined can significantly affect an employee’s retirement planning and financial security.
Eligibility Requirements for the Baxter International Inc. Pension Plan Baxter International Inc. typically defines pension plan eligibility based on factors like age, years of service, and employment status at the participation closing date. Employees hired after the plan closure would not be eligible, affecting their long-term retirement planning and necessitating alternative retirement savings strategies.
How does Baxter International Inc. calculate the final average pay for pension benefits, and what are the implications of compensation limits set by the IRS for employees nearing retirement? As employees approach retirement, knowledge about how Baxter International Inc. determines final average pay based on their earnings is crucial since it directly impacts the pension benefits they will receive. Employees must also consider the IRS limits on eligible compensation to fully understand how their eventual pension payouts will be calculated.
Calculation of Final Average Pay at Baxter International Inc. The final average pay for Baxter International Inc.’s pension benefits is likely calculated based on an employee's highest earnings years near retirement. This calculation could be subject to IRS compensation limits, which cap the earnings used in the benefit formula, potentially reducing the pension benefits for higher-earning employees as they near retirement.
What options are available for Baxter International Inc. employees when they decide to retire early, and how do these options affect their overall pension benefits? Early retirement can have significant financial implications for employees of Baxter International Inc., making it important for them to understand their choices and how each option might influence their long-term pension benefits. This includes looking at reductions in benefits and the age-related criteria that might apply.
Early Retirement Options at Baxter International Inc. Baxter International Inc. may offer options like reduced benefits or specific early retirement packages. These options could lead to lower pension payouts compared to retiring at the normal age, influenced by factors such as the number of years before normal retirement age and the actuarial reductions applied.
How has the freezing of the Baxter International Inc. pension plan in 2022 created changes for current and future participants regarding their accumulated benefits? Employees must grasp the consequences of the 2022 freeze, as it halts any additional benefit accruals and what this means in terms of vesting and distribution of benefits upon retirement. This shift may affect their retirement funding strategies and financial future.
Impact of the 2022 Pension Plan Freeze at Baxter International Inc. The freezing of the pension plan in 2022 means Baxter International Inc. ceased the accrual of benefits for participants as of that date. This affects employees' retirement planning, as no further benefits are accrued beyond the freeze, potentially requiring them to seek alternative ways to enhance their retirement savings.
What are the potential tax implications for Baxter International Inc. employees when opting for different pension payment options upon retirement? Employees should carefully evaluate the tax consequences of various distribution choices within the Baxter International Inc. pension plan to make informed decisions that optimize their financial outcomes in retirement. This requires an understanding of how taxes are applied to lump-sum payments versus annuity distributions.
Tax Implications of Pension Payment Options at Baxter International Inc. The choice between lump-sum payments and annuities at Baxter International Inc. has distinct tax implications. Lump sums could be subject to immediate taxation, potentially at higher rates, whereas annuities provide a steady income stream and may be taxed more favorably depending on individual tax situations.
How does Baxter International Inc. accommodate rehires and transfers regarding their prior pension benefits, and what policies govern these scenarios? Understanding the specific rules concerning rehires at Baxter International Inc. can help former employees plan their career strategies and assess the impact on their pension benefits. Employees need clarity on how their previously accrued benefits are handled in such situations.
Rehire and Transfer Policies Regarding Pension Benefits at Baxter International Inc. For employees rehired or transferred at Baxter International Inc., pension benefits previously accrued may be reinstated or continued, depending on the company’s specific policies on service crediting and benefit calculation for returning employees.
What rights and protections do Baxter International Inc. employees have under ERISA concerning their pension benefits, and how can they enforce these rights? Employees should be aware of their entitlements under ERISA to protect their interests in the Baxter International Inc. Pension Plan, including the procedures they can follow to challenge any denials of benefits. This knowledge empowers employees to safeguard their financial future effectively.
ERISA Rights and Protections for Employees of Baxter International Inc. Under ERISA, Baxter International Inc. employees are entitled to certain protections regarding their pension benefits, including the right to receive plan information, appeal denied claims, and sue for benefits and breaches of fiduciary duty. This legal framework ensures employees can effectively manage and protect their retirement benefits.
How does Baxter International Inc. ensure that pension benefits are secure, especially in the event of a plan termination or freezing event? Employees must comprehend the safeguards in place to protect their retirement assets in the event of potential changes to the pension plan status, which include federal agency involvement and how their vested rights are preserved.
Security of Pension Benefits at Baxter International Inc. In the event of plan termination or freezing, Baxter International Inc. must ensure that employees' pension benefits are secured, typically through insurance policies or federal agency guarantees such as those provided by the Pension Benefit Guaranty Corporation (PBGC), safeguarding benefits against company insolvency or plan underfunding.
What steps should Baxter International Inc. employees take to prepare for their eventual retirement in light of the details specified in the pension plan description? Retirement preparation involves a comprehensive understanding of the elements laid out in the Baxter International Inc. Pension Plan, including benefit calculations, retirement timing, and management of resources. Employees should consider this information when planning for a successful transition into retirement.
Preparation Steps for Retirement for Employees of Baxter International Inc. Employees should familiarize themselves with the details of the pension plan, such as benefit calculation methods, the impact of early retirement, and the integration of other retirement income sources. Engaging in financial planning and consulting with pension plan administrators or financial advisors can also help ensure a well-prepared retirement.
How can employees at Baxter International Inc. contact the company for more information regarding their pension plan and available benefits? Employees who seek clarity or assistance regarding their pension plan should know the appropriate channels and contact details to engage with Baxter International Inc. effectively. Resources available, including telephone numbers and administrative contacts, are paramount for employees navigating their retirement options.
Contacting Baxter International Inc. for Information on Pension Plans Employees needing further information or assistance regarding the Baxter International Inc. pension plan should contact the company’s HR department or pension plan administrator. Contact details are typically provided in the employee handbook or directly through the company's internal HR communication channels.