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

Charting the Course: How Huntington Ingalls Industries Employees Can Navigate the New Senior Tax Deduction

Healthcare Provider Update: Healthcare Provider for Huntington Ingalls Industries The healthcare provider for Huntington Ingalls Industries (HII) primarily focuses on providing employee health benefits through a mix of employer-sponsored insurance plans, as well as partnerships with other insurance carriers for comprehensive coverage options. HII is known for offering valuable benefits, helping ensure that their employees have access to necessary medical care. Specific healthcare providers might include major insurers that operate in the regions where HII has a presence, but details on the exact provider may vary based on the location and employee choices. Potential Healthcare Cost Increases in 2026 for Huntington Ingalls Industries As 2026 approaches, Huntington Ingalls Industries employees should prepare for significant healthcare cost increases, with some states projected to see premium hikes exceeding 60%. Factors contributing to these spikes include the expiration of enhanced federal subsidies from the Affordable Care Act (ACA), escalating medical costs, and heightened demand for healthcare services. Consequently, employees may find themselves shouldering a larger portion of healthcare expenses as companies like HII adapt their benefit structures to counterbalance rising costs, potentially resulting in out-of-pocket expenses increasing sharply next year. It is crucial for employees to familiarize themselves with upcoming benefit changes and strategically assess their healthcare plan options to mitigate the financial impact. Click here to learn more

“Huntington Ingalls Industries employees who leverage strategic income coordination and Roth conversion timing can fully benefit from the 2025 senior bonus deduction and increased standard deductions—though they should consult a tax advisor for individualized guidance.” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

“By modeling various income scenarios—balancing part-time earnings with Roth conversions and RMD timing—Huntington Ingalls Industries employees can optimize their benefit from the four-year senior bonus deduction window.” – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The new four-year “senior bonus” deduction and increased standard deduction.
Tax exclusions for part-time employment and strategic income coordination.
Roth conversion timing and RMD considerations to optimize MAGI.

President Donald Trump’s 2025 Tax Law

President Donald Trump signed a historic tax policy into law on July 4 that takes effect in 2025, providing taxpayers age 65 and older with a significant planning opportunity. Instead of fully exempting Social Security benefits from taxes, the law preserves existing rules while introducing a temporary, increased standard deduction to lower seniors’ taxable income.

New Senior Bonus Deduction

Huntington Ingalls Industries employees who qualify can claim a $6,000 “senior bonus” deduction for each eligible individual through the 2028 tax year, provided their modified adjusted gross income (MAGI) stays within specified limits.

Increased Income and Deduction Caps

Single filers with a MAGI up to $75,000 can claim the full $6,000 bonus deduction; the benefit phases out entirely once MAGI reaches $175,000. Married couples filing jointly may each deduct $6,000 if their combined MAGI is under $150,000, with the deduction phasing out by $250,000. ¹ Wealth Enhancement financial advisor Tyson Mavar notes, “This is a meaningful opportunity.” Every dollar of tax reduction directly strengthens retirement assets for those on fixed incomes.

Increases in Standard Deduction

Beginning in 2025, the basic standard deduction rises to $15,750 for single returns and $31,500 for joint returns, ² in addition to any senior bonus deduction. Retirees age 65+ already receive age-based increases—$2,000 for single filers and $3,200 for married couples. As a result, a married couple under the income threshold could deduct up to $46,700 before any itemized deductions.

Exclusions from Taxes for Part-Time Employment

The legislation also provides sector-specific limits for hourly and tipped workers. Certain service roles may exclude up to $25,000 in tip income and $12,500 in overtime pay from taxable income. Retirees who continue part-time work in service or hospitality may find this particularly transformative, as Tyson Mavar suggests, since it allows additional earnings without jeopardizing deduction eligibility.

Considerations for Roth Conversion

While converting traditional IRA assets to a Roth IRA can yield long-term benefits, it increases taxable income in the conversion year. Huntington Ingalls Industries retirees may inadvertently exceed MAGI limits, negating the $6,000 deduction. Patrick Ray, a financial advisor with Wealth Enhancement, suggests carefully structuring any Roth conversions to avoid exceeding limits, or potentially postponing the conversion until after the senior bonus phases out in 2028.

Required Minimum Distributions with Roth Accounts

RMDs from traditional IRAs begin at age 73 and fully count as taxable income, raising AGI. In contrast, Roth IRA withdrawals are tax-free and have no distribution mandate. Brent Wolf at Wealth Enhancement emphasizes that “the tax-free feature is crucial” for supporting flexible income planning through Roth accounts.

Management of Strategic Income

Coordinating revenue sources is essential to leverage this four-year window. Huntington Ingalls Industries employees might ask, “Can we adjust withdrawals and earnings to keep MAGI below the cutoff and capture substantial tax reductions?” as Mavar frames it.

Next Actions

Huntington Ingalls Industries retirees should forecast income streams—including earned income, Social Security, IRA distributions, pensions, and Roth conversion schedules—and model scenarios to identify optimal withdrawal ranges and part-time earnings. Engaging tax and wealth planning specialists helps confirm that plans are in place when the law takes effect.

The Bigger Picture

At a time when living costs may be rising, this four-year boost to the standard deduction offers a rare chance to lower tax bills. Over 2025–2028, disciplined planning—balancing MAGI against new thresholds, leveraging tip-income exclusions, and judicious Roth use—could yield tens of thousands in savings for those prepared to chart their course.

Personalized Guidance

Huntington Ingalls Industries employees seeking tailored strategies should consult advisors at Wealth Enhancement today to craft a retirement plan optimized for the enhanced deduction and broader tax changes.

Managing Medicare Surcharges

The same MAGI limits for the senior bonus also apply to Medicare premium surcharges. For instance, a single filer whose MAGI exceeds $106,000 by just $1 may face IRMAA penalties that add over $1,000 to annual Part B and Part D premiums.

In Summary

Examine the 2025 tax law’s retirement-planning options—including the $6,000 bonus deduction, higher standard deductions, MAGI thresholds, Roth timing, and tip-income exclusions—to optimize after-tax income through 2028.

Analogy

Navigating this new tax landscape is like steering a sailboat through a series of canal locks: you must time your income withdrawals and Roth conversions precisely to avoid rising water levels (MAGI phase-outs and Medicare surcharges), harness every current (the enhanced deductions and higher standard deduction) for forward motion, and explore side channels (tip-income and overtime exclusions) to gain extra distance. By keeping that careful course, Huntington Ingalls Industries employees can sail smoothly through 2025–2028 with optimal savings.

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p data-start='4780' data-end='4932' data-is-last-node='' data-is-only-node=''> Sources:

1. Tax Foundation. “ How Does the Additional Senior Deduction Compare to No Tax on Social Security? ,” by Alex Durante, 4 July 2025.

2. Bipartisan Policy Center. “ The 2025 Tax Bill: Additional $6,000 Deduction for Seniors, Simplified. ” by Emerson Sprick, 12 June 2025.

3. CBS News. “ Does the ‘Big, Beautiful Bill’ Eliminate Taxes on Social Security? ” by Mary Cunningham, 9 July 2025.

How does the Huntington Ingalls Industries (HII) pension plan integrate with Social Security benefits for maximizing an employee's retirement income, and what specific strategies can HII employees use to understand this integration better?

HII pension plan integration with Social Security: The HII pension plan works alongside Social Security benefits, with no reduction in pension payments due to Social Security benefits at age 65 or later. However, if an employee receives workers' compensation benefits, the pension may be reduced. To better understand this integration, employees should review their Social Security benefits statement and consult with the HIBC (Huntington Ingalls Benefits Center) for detailed guidance(Huntington Ingalls Indu…).

In relation to the Huntington Ingalls Industries (HII) pension plan, what are the eligibility requirements for normal and early retirement, and how do these requirements affect long-term financial planning for HII employees approaching retirement age?

Eligibility for normal and early retirement: Employees are eligible for normal retirement at age 65 or after five years of service, whichever comes first. Early retirement is available from age 55 with at least 10 years of service. Early retirement benefits are reduced to reflect the longer payout period, which can impact financial planning. Employees should consider whether to defer retirement to receive full benefits or take a reduced early retirement benefit(Huntington Ingalls Indu…).

How do changes in employment status, such as promotion or changing between hourly and salaried positions, affect pension benefits for Huntington Ingalls Industries (HII) employees, and what should employees consider when anticipating these changes?

Effect of employment status changes: Changes in employment status, such as a promotion or transitioning between hourly and salaried positions, can affect pension eligibility and accrual. For instance, transferring from an hourly to a salaried role might mean cessation of accrual under one plan and ineligibility to return to the previous plan unless specific conditions are met. Employees should check the plan rules and consult with HIBC before making such changes(Huntington Ingalls Indu…).

For employees of Huntington Ingalls Industries (HII), what steps must be taken to ensure that pension benefits are properly claimed and administered upon retirement, and what role does documentation play in this process?

Claiming pension benefits: Employees should notify the HIBC at least two months before their intended retirement date to begin the process of claiming pension benefits. Proper documentation, including a birth certificate, Social Security information, and marriage certificates (if applicable), is essential. Delays in providing this information can result in delays or even forfeiture of benefits(Huntington Ingalls Indu…).

How do the rules surrounding spousal consent impact retirement benefit elections for employees at Huntington Ingalls Industries (HII), and what specific options are available for employees considering different forms of retirement income?

Spousal consent and retirement elections: HII requires spousal consent for retirement elections other than the standard 50%, 75%, or 100% joint and survivor annuity options. This ensures that spouses are aware of and agree to any reduction in survivor benefits. Employees should discuss these options with their spouse and obtain written, notarized consent when necessary(Huntington Ingalls Indu…).

What are the implications of the pension plan provisions related to disability retirement for Huntington Ingalls Industries (HII) employees, including the eligibility criteria and the impact on social security benefits that employees should be aware of?

Disability retirement provisions: Disability retirement is available to employees with at least 15 years of service who qualify for Social Security disability benefits. Disability retirement benefits are not reduced for early commencement, making it a beneficial option for qualifying employees. It’s crucial for employees to apply to both HII and the Social Security Administration to claim these benefits(Huntington Ingalls Indu…).

In what ways does the pension plan of Huntington Ingalls Industries (HII) accommodate employees who have service credits from other employers or previously merged plans, and what actions should employees take to clarify their benefits?

Service credits from other employers: The HII pension plan may accommodate employees who have service credits from previously merged plans. If an employee has transferred assets from another employer’s plan, they should contact the HIBC to clarify how these credits affect their pension calculation(Huntington Ingalls Indu…).

How do the changes in IRS limits for retirement accounts in 2024 impact the retirement planning for employees of Huntington Ingalls Industries (HII), and what resources does HII provide to assist employees in navigating these changes?

IRS limit changes for 2024: Changes in IRS contribution limits affect retirement planning by capping how much can be saved in tax-advantaged accounts. HII provides access to tools and financial advisors through the HIBC, allowing employees to review how these changes impact their pension and 401(k) contributions(Huntington Ingalls Indu…).

What are the consequences for employees at Huntington Ingalls Industries (HII) if they fail to notify the benefits center of their address changes or retirement intentions, particularly concerning the accrual and distribution of their pension benefits?

Consequences of failing to notify benefits center: If an employee fails to update their address or retirement intentions with the HIBC, it may result in delayed pension payments or the loss of benefits. It is crucial to maintain up-to-date contact information to ensure smooth benefit distribution(Huntington Ingalls Indu…)(Huntington Ingalls Indu…).

If an Huntington Ingalls Industries (HII) employee wants to learn more about their specific pension benefits or has questions regarding the pension plan, what methods can they use to contact HII for assistance, and what information should they have ready during this communication?

Contacting HII for pension information: Employees can contact the HIBC via phone or the online portal (http://hiibenefits.com) to inquire about their pension benefits. They should have personal identification details such as Social Security numbers, marital status, and anticipated retirement dates ready for efficient assistance(Huntington Ingalls Indu…).

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

Huntington Ingalls Industries (HII) offers a comprehensive benefits package that includes both a 401(k) savings plan and pension options, catering to its large workforce of over 44,000 employees. The Huntington Ingalls Industries Savings Plan, also known as the HII Savings Plan, allows employees to contribute up to 75% of their compensation to a pre-tax 401(k) account. This plan is available to all eligible employees, providing a variety of investment options and tax advantages. Employees over the age of 50 can make catch-up contributions, further boosting their retirement savings (HAContent) (HII - Build Your Career). The pension plans at Huntington Ingalls Industries vary depending on the employee’s division and contract. For example, the Newport News Operations Pension Plan is available to employees covered by collective bargaining agreements, such as those represented by the United Steelworkers. The plan, previously known as the Northrop Grumman Shipbuilding Pension Plan, transitioned to Huntington Ingalls Industries after the companies split. This pension plan's benefits are based on a defined benefit formula that considers years of service and age (HII - Build Your Career). For 401(k) plan eligibility, employees must be at least 21 years old and have completed one year of service, qualifying them for the HII Savings Plan. The name of the 401(k) plan is the "HII Savings Plan," while the defined benefit plan for employees at Newport News is named the "Newport News Operations Pension Plan."

Restructuring and Layoffs: In 2023, Huntington Ingalls Industries announced a restructuring plan aimed at optimizing its operations. This plan included significant layoffs, particularly in administrative and support functions, to streamline its organizational structure. The company stated that these measures were necessary to improve efficiency and align its workforce with strategic goals. The current economic and political environment makes it crucial for employees and stakeholders to stay informed about such changes as they can impact job security and operational stability. Company Benefits and Pension Changes: In early 2024, Huntington Ingalls Industries also modified its employee benefit programs, including adjustments to its pension plan. The company revised its pension plan to reflect changes in investment strategies and market conditions, affecting the benefits structure for both current and retired employees. Given the fluctuating investment climate and evolving tax regulations, it's essential for employees to review these changes to understand how they might impact their retirement planning and financial security.

Huntington Ingalls Industries (HII) offered stock options and RSUs to its employees as part of their compensation packages. These typically include performance-based RSUs and time-vested RSUs. Specific eligibility and grant details are outlined in their 2022 annual report.

Company’s Official Website: Visit the Huntington Ingalls Industries official website. Look for sections like "Careers," "Employee Benefits," or "Our People." This section often has the most current and detailed information about health benefits. Annual Reports: Check the company's most recent annual reports or Form 10-K filings. These documents, usually available in the "Investor Relations" section of their website, provide detailed information on employee benefits, including healthcare. Employee Reviews and Forums: Websites like Glassdoor or Indeed offer insights from current and former employees regarding their experiences with health benefits. Look for reviews from 2022, 2023, and 2024. News Articles: Search for news articles related to Huntington Ingalls Industries and employee benefits. Use news aggregation sites like Google News, Bloomberg, or Reuters. Industry Reports: Look for industry-specific reports on defense and shipbuilding sectors, as they often discuss trends in employee benefits and health care in context.

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

https://www.sec.gov/Archives/edgar/data/1501585/000095012311003504/a57513a4exv10w20.htm https://cache.hacontent.com/ybr/R516/15757_ybr_ybrfndt/downloads/FSSPSPD.pdf https://cache.hacontent.com/ybr/R516/15757_ybr_ybrfndt/downloads/HISPSPD.pdf https://www.sec.gov/Archives/edgar/data/1501585/000150158524000026/hiifssp202311-k.htm https://en.wikipedia.org/wiki/Huntington_Ingalls_Industries https://craft.co/huntington-ingalls-industries https://careers.huntingtoningalls.com/content/Benefits/?locale=en_US https://hii.com/