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Healthcare Provider Update: Healthcare Provider for L3Harris L3Harris Technologies typically provides its employees with healthcare benefits through employer-sponsored insurance plans. The exact healthcare provider may vary based on location and specific employee circumstances, but major insurers commonly used include UnitedHealthcare, Anthem, and Cigna. Potential Healthcare Cost Increases in 2026 In 2026, L3Harris and similar employers are facing significant healthcare cost increases. Reports indicate a projected rise of approximately 8.5% in employer-sponsored insurance costs due to multiple inflationary pressures, including rising medical expenses and increased claims. Additionally, if the federal premium subsidies under the Affordable Care Act expire without renewal, employees may see a drastic rise in their out-of-pocket expenses, compounding the financial impact on both the company and its workforce. Employers are likely to respond by shifting more healthcare costs to employees, necessitating a proactive approach to managing these anticipated changes. Click here to learn more
'With recent tax rule changes, L3Harris employees now have expanded opportunities to optimize their health care savings through health savings accounts (HSAs), which provide tax-free growth, tax-free withdrawals for medical expenses, and enhanced flexibility, making them an essential tool for retirement planning.' — Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
'Recent changes to health savings accounts (HSAs) offer L3Harris employees valuable opportunities to not only save for medical expenses but also to take advantage of tax-free growth and withdrawals, making HSAs an indispensable tool for securing long-term health care savings.' — Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How health savings accounts (HSAs) work and their tax advantages.
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Recent tax changes that expand the benefits of HSAs for L3Harris employees.
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The flexibility and unique features of HSAs, including contributions, withdrawals, and new eligible uses like fitness-related expenses.
For many years, individuals looking to combine health insurance with significant tax benefits have found health savings accounts (HSAs) compelling options. Over 60 million Americans currently use HSAs 1 to take advantage of tax benefits and save for medical costs. The proposed tax and spending bill, approved by the House of Representatives in May 2025, could further enhance the benefits of these accounts. These changes, expected to be approved by the Senate in June, might expand the availability of HSAs to an additional 20 million Americans, marking the largest expansion since the program's creation in 2004.
L3Harris employees, especially retirees and older workers, will greatly benefit from this HSA expansion. The new amendments aim to simplify the regulations, clarify unclear clauses, and allow previously prohibited uses, such as paying for gym memberships. These improvements could offer greater flexibility and provide an excellent opportunity to save money for long-term health care, making a significant impact for those nearing retirement or already retired.
How Health Savings Accounts Work
To qualify for an HSA, individuals must have a high-deductible health insurance plan, which typically requires the policyholder to pay a larger share of medical expenses up front compared to standard health insurance. When combined with an HSA, the individual or employer can make tax-deductible contributions to offset these higher costs. The HSA allows for tax-free investments and growth, as well as tax-free withdrawals for approved medical expenses.
The maximum tax-deductible contribution to an HSA for 2025 is $4,300 for individuals and $8,550 for family coverage. In addition, a $1,000 'catch-up' contribution is available for individuals aged 55 and older. This presents a prime opportunity for L3Harris employees approaching retirement to increase their health care savings. HSA adoption is expected to grow significantly, with total assets expected to reach $147 billion by the end of 2024, up from $30 billion in 2015. 2
The triple tax benefits of HSAs distinguish them from other retirement savings accounts like 401ks and IRAs. Contributions to an HSA lower taxable income, funds grow tax-free, and withdrawals for approved medical expenses are tax-free. In contrast, withdrawals from 401ks and IRAs are taxable as income.
The Recent Modifications and Their Effects
Ten significant modifications in the new tax law will benefit individuals who use HSAs, particularly older Americans. Currently, Medicare beneficiaries enrolled in Medicare Part A at age 65 are restricted from contributing to an HSA. The new proposal allows these individuals to continue contributing to their HSA if they retain their employer health insurance. This change could be especially beneficial for L3Harris employees who choose to remain on the company health plan rather than enrolling in Medicare.
Additionally, the new bill will make certain Affordable Care Act (ACA) plans, such as Bronze and Catastrophic policies, eligible for HSA benefits. This will benefit both younger employees who opt for catastrophic coverage under the ACA and older employees who retire before age 65 and use ACA plans until they become eligible for Medicare.
One of the most anticipated changes is the ability to use HSA funds for fitness-related expenses, such as gym memberships. Currently, HSA funds cannot be used for fitness-related activities, but the new law would allow tax-free withdrawals for these costs, with annual limits of $500 for individuals and $1,000 for families. This change encourages employees to focus on preventative health care, potentially reducing long-term medical expenses.
Other Advantages and Characteristics of HSAs
HSAs offer significant flexibility compared to other retirement savings accounts. Withdrawals can be taken years after the expenses are incurred, as long as proper documentation is available. This makes HSAs a great option for employees looking to save for future health care costs without needing to use the funds immediately. Additionally, after age 65, individuals can withdraw HSA funds for non-medical expenses, although these withdrawals are taxable as income.
L3Harris employees will also benefit from the option to make family contributions to HSAs. Children under the age of 26 who are covered by their parents' health insurance may make contributions to their own HSA, even if they are no longer dependents. This allows families to provide long-term support for medical expenses, helping to build a more comprehensive health care savings plan for future generations.
In Conclusion
For L3Harris employees looking to save for health care expenses in retirement, HSAs offer a flexible and tax-efficient way to do so. The recent legislative changes, including expanded eligibility and enhanced benefits, will make it easier for more employees to take full advantage of these accounts. With higher contribution limits, the ability to use HSA funds for fitness-related costs, and continued tax-free growth, HSAs present a powerful tool for retirement savings.
By adopting these changes, L3Harris employees can optimize their health care savings and prepare for medical expenses in retirement. Whether through increased contribution limits, expanded eligibility, or greater flexibility in how funds can be used, these modifications offer new opportunities for employees to plan for their future health care needs.
The proposed changes also include the option for spouses to contribute to a shared HSA, beginning in 2026. This is a major benefit for older couples planning for retirement, as it allows them to pool their resources and take full advantage of the catch-up contributions. With these new rules, L3Harris employees can further streamline their health care savings strategy, preparing for both immediate and long-term needs.
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- How Are Workers Impacted by Inflation & Rising Interest Rates?
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Sources:
1. The Wall Street Journal, 29 May 2025, pp. A1–A2. https://www.wsj.com/personal-finance/taxes/hsa-2025-changes-6d6314eb
2. Devenir, 2 April 2025. https://www.devenir.com/devenir-report-shows-hsa-assets-reach-nearly-147-billion-by-year-end-2024/
Other resources:
1. U.S. Department of the Treasury, Jan. 2025, pp. 1–15. https://www.irs.gov/publications/p969
2. HealthEquity, Nov. 2024, pp. 1–10. https://www.healthequity.com/library/hsas-medicare-and-retirement-savings
4. Fidelity Investments, 2025, pp. 1–5. https://www.fidelity.com/viewpoints/wealth-management/hsas-and-your-retirement
5. The Motley Fool, 1 Nov. 2023, pp. 1–3. https://www.fool.com/retirement/2023/11/01/4-surprising-hsa-benefits-that-all-retirees-should/
What specific factors should L3Harris Technologies employees consider when determining the most suitable form of pension benefit at retirement? Employees of L3Harris Technologies may have various options, such as life annuities, contingent annuities, and lump-sum payouts. Understanding the implications of each option, including tax treatments and benefit guarantees, can be crucial in making a decision that aligns with long-term financial goals. It is also important to consider how the selected form may affect survivor benefits and overall retirement income planning.
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How does L3Harris Technologies determine eligibility for early retirement, and what implications does this have for pension benefits? Employees should familiarize themselves with the criteria for qualifying for early retirement, including age and service requirements. Additionally, understanding the benefits that are available should retirement occur before the standard retirement age can affect financial planning, as these benefits can differ significantly from those available at normal retirement age due to reduction factors or penalties.
Early Retirement Eligibility: L3Harris Technologies determines eligibility for early retirement based on age and years of service. Employees may qualify for early retirement if they are at least 55 years old and have completed 10 years of service(L3Harris Technologies I…). Opting for early retirement can result in a reduced pension benefit due to the longer payment period. These reductions, known as early retirement penalties, affect financial planning since the payout is lower compared to waiting until the normal retirement age(L3Harris Technologies I…).
In what ways do the pension formulas at L3Harris Technologies differ, and how can employees assess which plan is most advantageous for their retirement? Employees participating in the L3Harris pension plan can choose between different formulas, such as the Traditional Pension Plan and the Pension Equity Plan. Assessing which formula may yield higher benefits involves understanding the benefits calculation processes, including how each formula accounts for years of service, salary history, and participation criteria, which can significantly impact total retirement income.
Pension Formulas: L3Harris employees can choose between different pension formulas, such as the Traditional Pension Plan and Pension Equity Plan(L3Harris Technologies I…). The Traditional Plan is based on years of service and final average pay, while the Pension Equity Plan uses a lump-sum formula that accrues value over time. Understanding how each formula calculates benefits is essential for employees to determine which plan will provide higher retirement income, depending on their service years and salary history(L3Harris Technologies I…).
How should L3Harris Technologies employees prepare for the selection of a beneficiary, and what are the potential impacts on their pension benefits? Selecting a beneficiary is an important component of retirement planning. Employees at L3Harris Technologies must understand the implications that come with adding a spouse or other individuals as beneficiaries, including the effect on benefit amounts and how beneficiary selection can influence survivor payouts. Moreover, they should familiarize themselves with the requirements for updating beneficiary information and the legal implications of such designations.
Beneficiary Selection: Choosing a beneficiary is a crucial step for L3Harris employees. Adding a spouse or another individual as a beneficiary may reduce the employee's pension benefit but ensures that a portion of the pension continues after the employee's death(L3Harris Technologies I…). Employees should be aware of the survivor benefit provisions, spousal consent requirements, and the need to regularly update their beneficiary information(L3Harris Technologies I…).
What procedures must L3Harris Technologies employees follow to appeal a denied pension benefit claim, and what timelines should they be aware of? Employees should be well-informed about the steps involved in the appeals process for denied claims, including how and when to file an appeal and the importance of providing adequate documentation. Understanding the statutes of limitations related to claims and appeals can significantly influence the outcomes for employees seeking to reinstate or secure their benefits.
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How does L3Harris Technologies handle survivor benefits, and what actions should employees take to ensure that their surviving spouses or partners have access to these benefits? Understanding the components of survivor benefits at L3Harris Technologies is crucial. Employees should learn about the eligibility of their spouses or partners following their death, the type of benefits due, and any actions required to secure these benefits. Familiarity with the plan’s rules surrounding survivor benefits and timelines for elections can also affect the financial security of beneficiaries.
Survivor Benefits: L3Harris offers survivor benefits to spouses or designated beneficiaries(L3Harris Technologies I…). Employees must ensure that their spouse or partner is properly designated to receive these benefits, which may involve selecting an annuity option that provides continued payments to the survivor. Understanding the timelines for making these elections and the rules governing survivor benefits is crucial for securing financial support for loved ones(L3Harris Technologies I…).
What resources are available for L3Harris Technologies employees for receiving personalized retirement counseling, and how can these resources aid in making informed financial decisions? Employees may benefit from accessing professional counseling services or informational resources provided by L3Harris Technologies. These resources can include individual retirement planning sessions that help employees align their pension benefits with their overall retirement strategy, ensuring that they utilize their benefits effectively and are informed about their options.
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What impact do potential changes to the L3Harris Technologies pension plan have on current employees, and what steps should they take to stay informed about such changes? Employees should remain vigilant regarding any amendments to the pension plan that could influence their retirement benefits. This includes understanding their rights under ERISA and staying engaged with communication from L3Harris regarding plan updates, ensuring that they are equipped to make timely decisions based on the latest information.
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How can employees of L3Harris Technologies contact the Benefits Service Center to address specific questions regarding their pension plan or retirement strategy? It is essential for employees seeking clarity on their pension benefits or retirement planning to know how to reach out to the L3Harris Benefits Service Center. This center acts as a vital resource, and understanding its operations—including contact times, methods of contact, and the types of inquiries that can be addressed—will enable employees to receive the guidance they need regarding their benefits.
Benefits Service Center: L3Harris employees can contact the Benefits Service Center for any questions regarding their pension or retirement strategy. The center provides assistance with understanding pension benefits, resolving issues, and addressing specific inquiries related to retirement planning(L3Harris Technologies I…)(L3Harris Technologies I…).
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