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How the Latest IRS Regulations Impact Inherited Retirement Accounts for EnerSys Employees

Healthcare Provider Update: Healthcare Provider for EnerSys: EnerSys, a global leader in stored energy solutions, typically utilizes various healthcare providers for its employee benefits. However, the specific healthcare provider used by EnerSys can vary by location and is often tailored to meet the needs of its workforce and regional healthcare systems. For the most accurate and updated information, it's advisable for employees or interested parties to refer to EnerSys' human resources or benefits department. Potential Healthcare Cost Increases in 2026: As healthcare costs rise significantly, the landscape for employers and employees is expected to shift dramatically in 2026. Various insurers are predicting increases in premiums often exceeding 20%, driven by factors such as higher medical costs, potential expiration of federal premium subsidies, and significant rate hikes from the largest insurers. With market conditions suggesting that over 22 million individuals may face out-of-pocket premium hikes exceeding 75%, the financial strain on many families and businesses is imminent, necessitating strategic planning among employers to mitigate these impacts. Click here to learn more

The Internal Revenue Service (IRS) has finalized rules that significantly impact EnerSys 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 EnerSys.

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 EnerSys'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 EnerSys 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 EnerSys 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 EnerSys, 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 type of retirement savings plan does EnerSys offer to its employees?

EnerSys offers a 401(k) retirement savings plan to its employees.

Does EnerSys provide a company match for contributions made to the 401(k) plan?

Yes, EnerSys provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

How can EnerSys employees enroll in the 401(k) plan?

EnerSys employees can enroll in the 401(k) plan by completing the enrollment process through the company's benefits portal.

What is the eligibility requirement for EnerSys employees to participate in the 401(k) plan?

EnerSys employees are eligible to participate in the 401(k) plan after completing a specified period of service, typically outlined in the employee handbook.

Can EnerSys employees change their contribution amounts to the 401(k) plan?

Yes, EnerSys employees can change their contribution amounts to the 401(k) plan at any time during the year.

What investment options are available in the EnerSys 401(k) plan?

The EnerSys 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Does EnerSys allow for loans against the 401(k) plan?

Yes, EnerSys allows employees to take loans against their 401(k) plan balances, subject to specific terms and conditions.

What happens to the 401(k) plan if an EnerSys employee leaves the company?

If an EnerSys employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the EnerSys plan if allowed.

Are there any fees associated with the EnerSys 401(k) plan?

Yes, there may be administrative and investment fees associated with the EnerSys 401(k) plan, which are disclosed in the plan documents.

How often can EnerSys employees review their 401(k) account statements?

EnerSys employees can review their 401(k) account statements quarterly, and they may also have access to their accounts online for real-time updates.

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

For EnerSys, the company provides a 401(k) plan for its employees with a company match. According to reports from employee reviews, EnerSys offers a matching contribution up to 6%. Specifically, the first 4% is matched at 100%, while the next 2% is matched at 50% (Day Pitney). This makes it possible for employees to benefit from a total employer contribution of up to 6% of their salary, depending on their personal contribution levels. The EnerSys 401(k) plan is available to all full-time employees, and as per the company's policies, the matching starts after a certain period of employment, typically 90 days (Day Pitney). EnerSys also offers a Defined Benefit Pension Plan, though details on the specific name of the plan and the precise formula used were not immediately accessible. However, it is typically calculated based on factors such as years of service and final average pay. Employees are vested after completing a specified period of service, which is typically around five years

Restructuring and Layoffs: In 2023, EnerSys announced a significant restructuring plan aimed at optimizing its global operations. This restructuring led to layoffs affecting several positions across its manufacturing and administrative sectors. The move was part of a broader strategy to streamline operations and reduce costs amid a challenging economic environment. It is crucial to monitor such developments due to the impact of restructuring on employee security and the potential implications for the company’s operational efficiency. Given the current economic climate and investment trends, understanding these changes is essential for stakeholders to navigate the potential risks and opportunities effectively.

EnerSys Stock Options (SO): EnerSys offers stock options (SO) to selected employees based on their roles and performance. The options typically vest over a period of time, ensuring that employees stay with EnerSys for an extended period. EnerSys Restricted Stock Units (RSU): EnerSys grants Restricted Stock Units (RSU) to senior executives and key employees. These RSUs are generally subject to performance and time-based vesting conditions.

Health Plan Options: EnerSys offers its employees competitive health insurance plans, including options through Blue Cross Blue Shield (BCBS). Employees can choose between a High Deductible Plan (HDP) and a Preferred Provider Organization (PPO) plan (Enersys) (Enersys Investor). These options are designed to cater to different needs, with the HDP being suitable for employees who prefer lower premiums and higher deductibles, while the PPO offers more flexibility in choosing healthcare providers. Health Savings Account (HSA): Employees enrolled in the HDP have access to a Health Savings Account (HSA), allowing them to set aside pre-tax dollars to cover medical expenses. This is a key feature that supports employees in managing out-of-pocket costs (Enersys). Wellness and Preventive Care: EnerSys promotes preventive care through its health plans by offering annual physicals, screenings, and immunizations at no additional cost to employees (Enersys). Preventive care is a major focus, aiming to reduce long-term healthcare costs and improve employee well-being. Employee Assistance Program (EAP): EnerSys provides an Employee Assistance Program (EAP) for mental health support. This program offers confidential counseling and resources for employees dealing with personal or professional challenges. The EAP is part of EnerSys' broader commitment to employee wellness (Enersys Investor). Recent Employee Healthcare News: In response to rising healthcare costs, EnerSys has maintained a commitment to keeping employee contributions low while expanding access to essential services. They have continued enhancing their healthcare plans by offering comprehensive telehealth services, reflecting industry trends aimed at reducing in-person visits and supporting remote healthcare needs

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For more information you can reach the plan administrator for EnerSys at 2366 Bernville Rd Reading, PA 19605; or by calling them at (610) 208-1991.

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