<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=314834185700910&amp;ev=PageView&amp;noscript=1">

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

Learn More

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

image-table

Healthcare Provider Update: Healthcare Provider for Steelcase Steelcase employees typically access healthcare services through major national insurance providers, with several options available depending on their specific employee benefits plan. Common providers offering plans for Steelcase employees may include larger insurers like UnitedHealthcare, Anthem, and Cigna, among others. Employees should refer to their employee benefits information for the precise names and details of the providers available to them. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare costs are poised to rise significantly, driven by anticipated increases in health insurance premiums through the Affordable Care Act (ACA). Some states may see hikes exceeding 60%, largely due to increasing medical costs, the potential loss of enhanced federal subsidies, and aggressive rate adjustments from major insurers. Without congressional intervention to extend these subsidies, a staggering 92% of marketplace enrollees could face premium increases over 75%, putting affordable healthcare coverage further out of reach for many. For Steelcase employees relying on ACA coverage, these changes could lead to steep financial burdens come 2026. Click here to learn more

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

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 Steelcase'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 Steelcase 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.

Featured Video

Articles you may find interesting:

Loading...

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 Steelcase 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 Steelcase, 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 purpose of Steelcase's 401k/Savings Plan?

The purpose of Steelcase's 401k/Savings Plan is to help employees save for retirement by providing a tax-advantaged way to invest a portion of their earnings.

How can Steelcase employees enroll in the 401k/Savings Plan?

Steelcase employees can enroll in the 401k/Savings Plan through the company’s HR portal or by contacting the HR department for assistance.

Does Steelcase offer a company match for the 401k contributions?

Yes, Steelcase offers a company match for employee contributions to the 401k/Savings Plan, which helps to enhance retirement savings.

What are the eligibility requirements for Steelcase's 401k/Savings Plan?

Employees of Steelcase are generally eligible to participate in the 401k/Savings Plan after completing a specific period of service, as outlined in the employee handbook.

Can Steelcase employees change their contribution percentage to the 401k/Savings Plan?

Yes, Steelcase employees can change their contribution percentage to the 401k/Savings Plan at any time, subject to certain guidelines.

What investment options are available in Steelcase's 401k/Savings Plan?

Steelcase's 401k/Savings Plan offers a range of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

Is there a vesting schedule for Steelcase's company match in the 401k/Savings Plan?

Yes, Steelcase has a vesting schedule for the company match in the 401k/Savings Plan, which determines when employees fully own the matching contributions.

How often can Steelcase employees review their 401k/Savings Plan account?

Steelcase employees can review their 401k/Savings Plan account at any time through the online portal provided by the plan administrator.

What happens to Steelcase employees' 401k/Savings Plan accounts if they leave the company?

If Steelcase employees leave the company, they have several options for their 401k/Savings Plan accounts, including rolling over the balance to another retirement account or cashing out.

Are there any fees associated with Steelcase's 401k/Savings Plan?

Yes, Steelcase's 401k/Savings Plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

New call-to-action

Additional Articles

Check Out Articles for Steelcase employees

Loading...

For more information you can reach the plan administrator for Steelcase at , ; or by calling them at .

*Please see disclaimer for more information

Relevant Articles

Check Out Articles for Steelcase employees