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

Navigating Home Buying Support for Your Children: A Unisys Corporation Employee's Guide to Avoiding Tax Pitfalls in California

Unisys Corporation employees, especially those nearing retirement, should consider utilizing tax-efficient methods such as gifts, loans, or co-signing arrangements to support their children's home purchases in California’s competitive real estate market, while also staying mindful of changing IRS guidelines that could affect long-term financial goals. – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

Unisys Corporation employees should evaluate the long-term financial impact of helping their children buy property, considering the tax implications of gifts, loans, and co-signing, while also ensuring these strategies align with their retirement plans and estate goals. – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The impact of California’s real estate market on financial planning – How market trends, tax laws, and family financial strategies influence home ownership.
Strategies for assisting children in purchasing a home – Exploring various financial methods, such as gifting, co-signing, and investment properties.
Tax implications and legal considerations – Understanding IRS guidelines, gift tax exclusions, and estate planning factors when supporting home purchases.

The real estate market in California is complicated but reflects broad trends that affect many, including Unisys Corporation employees considering long-term financial planning and intergenerational wealth transfer. Understand tax law, real estate laws and family finance strategies. This guide examines how families negotiate home purchases - from financial, tax and legal points of view.

A hot market with high property costs, the Bay Area often sees first-time buyers Tommy Ufland and Tori Olsen pass on all-cash offers despite being prepared. So eventually Ufland and Olsen purchased a condo from Olsen's relatives at market price.

In California, relatives typically help first-time buyers - about 27% of purchasers in 2024 received such aid - down from 34% in 2023.

Real estate professionals estimate this could rise to 50% in highly competitive markets like the Bay Area.

Family members often give gifts to help with property purchases, even if the gifts are tax-impacted. According to 2025 Internal Revenue Service guidelines, for example, someone could gift USD 19,000 per person annually without paying gift taxes.

Therefore, a couple may jointly give USD 38,000 to their child and spouse with no immediate tax consequences, but this reduces their lifetime gift and estate tax exemption and may require a gift tax return for amounts above this amount.

There are various strategies that parents can use to help their children buy real estate - each with benefits and drawbacks:

Down Payment Direct Gift: This is a simple one - parents gift the down payment so the money can be used as intended and no more financial problems arise.
Down Payment via Parental Loan: This involves lending the down payment to the child in a formal agreement with interest at or above the federal rate, not a gift.
Co-signing a Mortgage: This may help children get better loan terms but puts the parents in a position to be financially liable if the child defaults.
Purchasing Outright for Cash: Some affluent parents buy a home outright and let their children refinance into a conventional mortgage later on, giving them ownership back.
Investment/Rental Properties: This option allows parents flexibility in financial arrangement and tax considerations as parents buy a property as an investment and rent it to their child under standard tenant agreements or as a second home.
Joint Ownership: Parents and children can buy property together in legally defined ownership shares and responsibilities, controlling and financing input but with specific legal structuring.
Selling a Family Home: Parents may sell their home to their child below market value to save on transaction fees and get the child familiar with the property, but this may increase property and gift taxes.

Every method involves particular taxes, legal rights and financial responsibilities that should be considered and discussed with legal and financial professionals. Picking one depends on the family's financial picture, the real estate market and long-term financial goals of parents and children.

And they reflect broader economic and fiscal conditions that may affect investment strategies and purchasing power, such as changes in IRS rules or market movements that may affect the outcomes of each approach.

Understanding such methods as well as their consequences allows sound decisions in the context of short- and long-term financial realities and health. Professional guidance can explain these options and assist in achieving financial goals and ensuring regulatory compliance.

The SECURE Act 2.0 passed in December 2022 is big news for Unisys Corporation employees approaching retirement. It affects retirement and tax planning by raising the age of required minimum distributions and allowing penalty-free withdrawals for first-homebuyer down payments - and will affect financial planning for children's real estate goals.

Help your grown children buy a home in California while handling tax considerations. This article details strategies to limit gift tax consequences and maximize financial results, including co-signing mortgages, parental loans and direct gifts. Understanding relevant federal rates and IRS rules helps Unisys Corporation employees structure transactions to help family members in California's competitive real estate market.

Helping your adult child buy a home in California tax-efficiently involves understanding tax regulations, mortgage details and financial strategies. Everything from using IRS gift exclusions to choosing the right loan or co-signing arrangement must be in line with financial and legal objectives.

Five different sources are listed below with a 100-word explanation of how the source benefits retirees, supports the arguments made, the author name, publication date and references to pages cited.

Articles you may find interesting:

.Sources:

1. Internal Revenue Service. Estate and Gift Tax FAQs. IRS, Sept. 2024.

2. Zillow. California Housing Market: 2025 Home Prices & Trends. Mar. 2025.

3. NerdWallet Staff. Gift Tax: 2024 and 2025 Annual and Lifetime Limits. NerdWallet, Feb. 2025.

4. Redfin. California Housing Market: House Prices & Trends. Feb. 2025.

5. Internal Revenue Service. Frequently Asked Questions on Gift Taxes. IRS, 28 Oct. 2024.

What specific retirement options are available to employees of Unisys, and how do these options vary in terms of financial benefits, including considerations for early retirement vs. normal retirement age? In the context of the Unisys Pension Plan, what implications do these options have on long-term financial planning for employees at Unisys?

Retirement Options at Unisys: The Unisys Pension Plan provides options for normal, early, and unreduced retirement. Normal retirement is at age 65, and early retirement is available between ages 55 and 65, though benefits may be reduced for early retirement. Employees with at least 20 years of vesting service can retire without reductions from age 62. These options influence long-term financial planning as choosing early retirement may result in reduced benefits due to longer payout periods(Unisys_Corporation_Summ…).

How are pay credits calculated under the Unisys Pension Plan, and what factors might influence an employee's monthly pay credit pertaining to their Retirement Accumulation Account? Moreover, what are the potential impacts on retirement benefits if employees experience changes in their eligible pay during employment at Unisys?

Pay Credits Calculation: Pay credits under the Unisys Pension Plan were calculated at 4% of an employee’s eligible monthly pay from January 1, 2003, through December 31, 2006. Interest credits continue to accrue after this period until benefits are distributed. Changes in an employee’s eligible pay during employment will affect the total pay credits, thus impacting their retirement accumulation account(Unisys_Corporation_Summ…).

Can you explain the differences between credited service, eligibility service, and vesting service as defined by Unisys? What importance do these distinctions have on an employee's ability to access their retirement benefits, and how does each type of service contribute to the overall calculation of an employee's pension under the Unisys plan?

Service Types at Unisys: Credited service refers to the period used to calculate pension benefits, vesting service determines eligibility for receiving benefits, and eligibility service is the time required to become a participant in the plan. These distinctions are critical because credited service directly affects the benefit calculation, while vesting and eligibility service ensure employees qualify for benefits(Unisys_Corporation_Summ…).

What steps must Unisys employees take to initiate their pension benefits, and what specific information will they need to provide during the application process to ensure a smooth transition into retirement? Additionally, how does Unisys support employees in navigating this process, and what potential delays should employees be aware of?

Initiating Pension Benefits: To initiate pension benefits, employees must contact the Unisys Benefits Service Center and apply for their benefits. They must provide personal and employment details, including retirement age and chosen payout method (lump sum or annuity). Unisys supports employees through this process via their benefits service center, but delays can occur due to incomplete information or processing times(Unisys_Corporation_Summ…).

In what ways does the Unisys Pension Plan ensure protection for employees' benefits under federal law, particularly through the Pension Benefit Guaranty Corporation (PBGC)? How does this insurance work in practice, and what types of benefits are specifically covered or not covered by the PBGC for Unisys employees?

PBGC Insurance: Unisys Pension Plan benefits are protected under the Pension Benefit Guaranty Corporation (PBGC), ensuring employees receive guaranteed benefits even if the plan is terminated. However, certain benefits, such as non-qualified plans or supplemental executive retirement plans, may not be covered under PBGC(Unisys_Corporation_Summ…).

How might changes or amendments to the Unisys Pension Plan affect existing and future employees? In particular, what provisions does Unisys have in place to communicate significant changes in the plan to its employees, and what rights do employees have under ERISA if they disagree with these changes?

Impact of Plan Amendments: Any amendments to the Unisys Pension Plan could affect both existing and future employees. Unisys communicates significant changes through written notifications. Employees have rights under ERISA, including the right to challenge plan changes if they disagree with amendments that negatively affect their benefits(Unisys_Corporation_Summ…).

What considerations should employees of Unisys keep in mind regarding their benefits if they are nearing retirement age? Additionally, how can employees effectively prepare for potential changes to their health or work circumstances that could impact their retirement planning, given the options provided by Unisys?

Retirement Preparation: Employees nearing retirement should consider the timing of benefit elections, such as early or normal retirement. Preparing for potential health changes or shifts in work circumstances is essential, as these factors may alter retirement needs and benefit choices under the Unisys Pension Plan(Unisys_Corporation_Summ…).

What are the options available for Unisys employees who wish to designate beneficiaries for their retirement benefits, and how do these designations affect benefit distributions? Specifically, what criteria must be met for naming a contingent annuitant, and what restrictions might apply under the Unisys plan?

Beneficiary Designation: Unisys employees can designate beneficiaries for their retirement benefits. If a spouse is not the beneficiary, spousal consent may be required. A contingent annuitant can also be designated under certain restrictions, affecting the distribution of retirement benefits based on Unisys’ rules(Unisys_Corporation_Summ…).

How does the Unisys Benefits Service Center operate, and what resources are available for employees seeking information about their pension plans or retirement benefits? What are the best practices for contacting the Unisys Benefits Service Center to ensure that employees receive timely and accurate answers to their inquiries?

Unisys Benefits Service Center: The Unisys Benefits Service Center provides employees with resources for pension inquiries and applications. Best practices for contacting them include preparing all necessary personal and employment details to ensure timely and accurate responses(Unisys_Corporation_Summ…).

What are the most important elements of the Unisys Pension Plan that employees should review before retirement, and how can employees leverage the information provided in the summary plan description to optimize their retirement income? What role does employee education play in enhancing knowledge about these elements and ensuring informed decision-making about retirement benefits at Unisys?

Critical Pension Plan Elements: Employees should review their Retirement Accumulation Account, service years, and payout options before retirement. The summary plan description is a valuable resource for understanding how to maximize retirement income, and Unisys offers educational tools to help employees make informed decisions(Unisys_Corporation_Summ…).