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How the Latest IRS Regulations Impact Inherited Retirement Accounts for Acuity Brands Employees

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Healthcare Provider Update: Healthcare Provider for Acuity Brands Acuity Brands, a leading provider of lighting and building management solutions, primarily offers its healthcare benefits through large national insurers such as UnitedHealthcare. Employees may access these plans to cover a variety of medical needs, reflecting the competitive landscape for employer-sponsored health insurance. Potential Healthcare Cost Increases in 2026 Looking ahead to 2026, Acuity Brands employees should brace for significant healthcare cost increases. Record premium hikes are anticipated in the Affordable Care Act (ACA) marketplace, with some states experiencing increases as steep as 66%. Coupled with the expiration of enhanced federal premium subsidies, many employees may see their out-of-pocket costs soar by over 75%. Companies across the U.S. are responding to rising healthcare expenses by adjusting benefit structures, which may further impact the affordability of coverage for employees. Click here to learn more

The  Internal Revenue Service (IRS)  has finalized rules that significantly impact Acuity Brands employees who are heirs of retirement accounts, mandating minimum annual withdrawals from inherited IRAs and 401(k)s. This development represents a considerable shift from previous guidelines which permitted many non-spousal beneficiaries to spread out the distribution of inherited retirement funds throughout their lifetimes, optimizing growth through extended investment periods. These new rules, introduced under the 2019 Secure Act, now require many heirs to deplete these accounts within a ten-year timeframe.

Before this rule change, beneficiaries enjoyed the flexibility to plan withdrawals to their financial benefit, potentially postponing distributions to the last year of the allowed period. However, under the new IRS guidelines, interpreting Congressional intent aims to prevent the wealthy from indefinitely deferring taxes on inherited retirement wealth. This requirement now applies to all future inheritances and those received since 2020, impacting many within Acuity Brands.

The revised IRS stance excludes spouses, who are subject to a different set of rules. 

The legislative shift reflects broader trends where Congress seeks to increase revenue through stricter management of retirement funds. These changes underscore the importance for Acuity Brands's workforce to continually adapt to new financial landscapes.

One area of confusion has been the timing and amounts of mandatory withdrawals, leading to widespread noncompliance. Recognizing this, the IRS has shown leniency, waiving penalties for missed distributions until 2024. From 2025, annual withdrawals must conform to life expectancy calculations, significantly impacting tax liabilities for heirs.

Tax professionals recommend that Acuity Brands employees inheriting retirement funds consider their future income prospects when planning withdrawals. Deferring larger distributions until later in the ten-year window could be advantageous, minimizing tax burdens if a reduction in income is anticipated.

The changes also affect heirs of multiple IRAs, each subject to varying rules based on the account type and the date of the original holder's death. Notably, Roth IRAs offer strategic benefits as distributions are not required until the final year and are tax-free upon withdrawal.

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Moreover, certain beneficiaries, including chronically ill individuals, must take annual distributions based on their life expectancies, irrespective of the 2019 changes. Those inheriting IRAs before these updates must adhere to older guidelines, planning withdrawals over their expected lifetimes.

For Acuity Brands employees navigating these complex regulations, engaging with tax professionals for strategic financial planning is crucial. Understanding and managing the layered regulations of both old and new IRA rules is essential to maximizing the financial outcomes of inherited retirement accounts while ensuring compliance with the legal requirements.

In conclusion, the recent IRS regulations emphasize a move towards stricter oversight of inherited retirement account distributions. Beneficiaries, including those from Acuity Brands, must navigate a stricter framework that demands vigilance and strategic financial planning to optimize their outcomes. Staying informed and consulting with financial experts is vital for managing inherited retirement wealth effectively.

What is the 401k/Savings Plan offered by Acuity Brands?

The 401k/Savings Plan at Acuity Brands is a retirement savings plan that allows employees to save a portion of their paycheck on a pre-tax or after-tax basis for their future retirement.

How can I enroll in the Acuity Brands 401k/Savings Plan?

Employees can enroll in the Acuity Brands 401k/Savings Plan by completing the online enrollment process through the company's benefits portal or by contacting HR for assistance.

Does Acuity Brands offer a company match for the 401k/Savings Plan?

Yes, Acuity Brands offers a company match for contributions made to the 401k/Savings Plan, which helps employees boost their retirement savings.

What is the vesting schedule for the Acuity Brands 401k/Savings Plan?

The vesting schedule for the Acuity Brands 401k/Savings Plan typically outlines the period an employee must work at the company to fully own the employer's contributions, which can vary based on tenure.

Can I take a loan against my Acuity Brands 401k/Savings Plan?

Yes, Acuity Brands allows employees to take a loan against their 401k/Savings Plan, subject to specific terms and conditions outlined in the plan documents.

What investment options are available in the Acuity Brands 401k/Savings Plan?

The Acuity Brands 401k/Savings Plan offers a variety of investment options, including mutual funds, target date funds, and other asset classes to help employees diversify their portfolios.

How often can I change my contribution amount to the Acuity Brands 401k/Savings Plan?

Employees can change their contribution amount to the Acuity Brands 401k/Savings Plan at any time, typically through the benefits portal or by contacting HR.

What happens to my Acuity Brands 401k/Savings Plan if I leave the company?

If you leave Acuity Brands, you have several options for your 401k/Savings Plan, including rolling it over to another retirement account, cashing it out (subject to taxes and penalties), or leaving it in the plan if eligible.

Is there a minimum contribution requirement for the Acuity Brands 401k/Savings Plan?

Yes, Acuity Brands may have a minimum contribution requirement for the 401k/Savings Plan, which is typically outlined in the plan documents.

Can I contribute to the Acuity Brands 401k/Savings Plan if I am part-time?

Yes, part-time employees at Acuity Brands may be eligible to contribute to the 401k/Savings Plan, depending on the specific eligibility criteria set by the company.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Acuity Brands announced a significant restructuring plan aimed at optimizing its operational efficiency. This involves layoffs of approximately 10% of its workforce, primarily in the manufacturing and administrative sectors. Additionally, the company is revising its pension plan to reduce future liabilities and enhancing its 401(k) match to retain key employees.
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For more information you can reach the plan administrator for Acuity Brands at 1170 Peachtree Street NE, Suite 2300 Atlanta, GA 30309; or by calling them at (404) 853-1400.

*Please see disclaimer for more information

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