Healthcare Provider Update: Healthcare Provider for Benchmark Electronics The primary healthcare provider for Benchmark Electronics is UnitedHealthcare. This partnership ensures that employees have access to comprehensive medical coverage options, aligning with your interest in potential healthcare costs. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare consumers are facing a challenging landscape characterized by significant premium increases for Affordable Care Act (ACA) marketplace plans. Nationwide, some states are projected to see hikes exceeding 60% as insurers grapple with high medical costs and the potential loss of enhanced federal subsidies. Estimates suggest that without corrective legislative actions, up to 22 million enrollees could experience out-of-pocket premium increases of over 75%. This scenario may lead to many middle-income Americans facing affordability issues as rising premiums coincide with decreased support, potentially pricing them out of adequate healthcare coverage. Click here to learn more
In December 2019, the 'Setting Every Community Up for Retirement Enhancement (SECURE) Act ' introduced transformative adjustments to the taxation of post-mortem distributions from qualified retirement accounts. A pivotal element of these changes was the elimination of the 'stretch' provision for most non-spouse beneficiaries, replaced by the 10-Year Rule, which mandates the full distribution of inherited retirement assets within a decade of the account holder’s death. This shift directly affects Benchmark Electronics employees planning for or managing inheritance scenarios.
By February 2022, the IRS had released Proposed Regulations extending the impacts of the SECURE Act by imposing requirements for annual Required Minimum Distributions (RMDs) over a 10-year period for beneficiaries, provided the deceased had been subject to RMDs prior to their death. This meant that annual distributions were mandatory even during the decennial distribution period, significantly altering the landscape for taxation and estate planning. This regulation demands attention from Benchmark Electronics advisors to assist their colleagues effectively.
This complexity was further emphasized with the IRS’s release of the Final Regulations on July 18, 2024, which not only confirmed these stipulations but also expanded the situations in which various beneficiaries would be impacted. These regulations have strengthened the framework for both eligible and non-eligible beneficiaries, introducing nuanced rules that address scenarios ranging from undistributed RMDs at the death of an account owner to the management of inherited estates through different types of trusts. Such intricacies require careful navigation to optimize outcomes for Benchmark Electronics families.
Key Provisions and Their Implications
1. Post-mortem Distribution Rules: For beneficiaries inheriting after the Required Beginning Date (RBD) of the account holder, annual RMDs are mandatory until the end of the tenth year following the death. This rule emphasizes the IRS’s stance on reinforcing tax deduction benefits previously extended through the stretch measure. Benchmark Electronics employees must be aware of these timelines to make informed decisions about their retirement assets.
2. Management of Undistributed RMDs: The regulations stipulate that if the deceased had not taken their full RMD at death, any beneficiary can fulfill this obligation. This flexibility helps simplify compliance for beneficiaries managing inherited estates, which is particularly relevant for Benchmark Electronics beneficiaries who may be navigating these waters for the first time.
3. Specific Rules for Spouses: A new 'hypothetical RMD' rule requires surviving spouses who first opt for the 10-Year Rule and then decide to treat the inheritance as their own account, to carry out RMDs as if the assets were still in their account. This regulation highlights the importance of careful planning by surviving spouses in managing asset rotation schedules, a critical consideration for Benchmark Electronics families ensuring financial stability.
4. Trusts as Beneficiaries: The regulations outline how Passage Trusts, whether Conduit or Accumulation types, are treated under the law, specifying the beneficiaries considered for RMD calculations. This ensures that trusts designed to extend asset distributions over an extended period are meticulously structured to comply with the new rules, offering strategic insights for Benchmark Electronics planners.
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5. Annuities and Retirement Accounts: Clarifications on how annuities embedded in retirement accounts are to be treated for RMD calculations highlight the management of annual payments to meet RMD obligations. These clarifications are vital for Benchmark Electronics employees who have invested in these financial vehicles as part of their retirement planning.
Strategic Perspectives for Financial Advisors
Financial advisors face these regulations with a deep understanding of their implications on estate planning strategies. This evolution highlights the need to review future plans and beneficiary designations to adapt to the new legal framework. Advisors are tasked with interpreting these complex rules to provide clear, strategic expertise that minimizes tax liabilities and ensures compliance while achieving clients’ long-term financial goals, which is especially pertinent for Benchmark Electronics advisors working with their peers.
In conclusion, the latest regulations from 2024 mark a crucial evolution in managing retirement assets post-death. By strengthening rules regarding the timing and mode of distribution, the IRS aims to ensure quicker tax remedies while allowing some leeway in certain cases. For financial advisors, staying informed about these regulations is essential to effectively assist their clients, ensuring that strategic decisions are both tax-efficient and aligned with estate management goals. As this legislation continues to evolve, it will be crucial for advisors to engage proactively and continually educate themselves to deliver the best value to their clients in this complex environment. Benchmark Electronics advisors are uniquely positioned to navigate these changes, providing invaluable guidance to their colleagues and families.
What is the 401(k) plan offered by Benchmark Electronics?
The 401(k) plan at Benchmark Electronics is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax basis, helping them prepare for retirement.
Does Benchmark Electronics match employee contributions to the 401(k) plan?
Yes, Benchmark Electronics offers a matching contribution to the 401(k) plan, which helps employees increase their retirement savings.
How can I enroll in the Benchmark Electronics 401(k) plan?
Employees can enroll in the Benchmark Electronics 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.
What are the eligibility requirements for the Benchmark Electronics 401(k) plan?
Employees of Benchmark Electronics are generally eligible to participate in the 401(k) plan after completing a specified period of service, as outlined in the plan documents.
Can I change my contribution rate to the Benchmark Electronics 401(k) plan?
Yes, employees can change their contribution rate to the Benchmark Electronics 401(k) plan at any time, subject to the plan's rules and limits.
What investment options are available in the Benchmark Electronics 401(k) plan?
The Benchmark Electronics 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
Is there a vesting schedule for the employer match in the Benchmark Electronics 401(k) plan?
Yes, the employer match in the Benchmark Electronics 401(k) plan may be subject to a vesting schedule, which determines when employees fully own the matched contributions.
Can I take a loan from my Benchmark Electronics 401(k) plan?
Yes, employees may have the option to take a loan against their 401(k) balance in the Benchmark Electronics plan, subject to specific terms and conditions.
What happens to my Benchmark Electronics 401(k) if I leave the company?
If you leave Benchmark Electronics, you have several options for your 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it with Benchmark Electronics.
Are there any fees associated with the Benchmark Electronics 401(k) plan?
Yes, the Benchmark Electronics 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.