/General/General%2013.png?width=1280&height=853&name=General%2013.png)
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
'The new 2023 retirement contribution limits present L3Harris employees with a good prospect to improve their financial position by making the most of tax-deferred investments because this practice helps them build up their retirement funds.' Consulting with Tyson Mavar , a representative of The Retirement Group, a division of Wealth Enhancement Group, reveals that “
'T he 2023 contribution limits present L3Harris employees with a chance to improve their retirement savings so that they can enhance their financial security just before they retire.” Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group, says, 'The revised contribution limits in 2023 are a chance for L3Harris employees to increase their retirement contributions and, therefore, improve their financial security near the time of their retirement.'
In this article, we will discuss:
1. Some of these cost-of-living adjustments have risen to nearly historical levels due to persistently high inflation and financial instability in the recent past.
2. Keep in mind that this post is intended to provide information only and therefore you should talk to an accounting or tax advisor before modifying your 2023 tax plan.
3. You can also contact your financial advisor to see if he or she can offer information about the changes coming your way.
Last Update:
This blog post was updated to include further guidance on the new year's implications for L3Harris employees.
Individual Retirement Accounts (IRAs) Beginning in 2023, traditional IRAs for L3Harris workers will allow a maximum contribution of $6,500, which is $500 more than the previous year. The amount of catch-up contributions made by people over fifty remains at $1,000 which makes the total contribution limit $7,500. Individuals must withdraw funds from their Traditional IRA accounts no later than their 73rd birthday because withdrawals are taxed as ordinary income and withdrawals before age 59½ may attract a 10% federal income tax penalty.
Roth IRAs Due to the phase-out inco:me range increased by $9,000, Roth IRA contributions for L3Harris employees will phase out for single filers and heads of household between $138,000 and $153,000, and for married couples filing jointly up to $228,000. The phase-out range for married individuals filing separately stays at $0 – $10,000. For L3Harris employees to be eligible for tax-free and penalty-free withdrawals of earnings from Roth 401(k) distributions, the plans must have been held for at least five years and the participant must be age 59½ or older; other exceptions include the death of the plan owner.
Workplace Retirement Accounts The 2023 allowance for L3Harris employees who participate in 401(k), 403(b), 457 plans, and similar accounts will be $22,500, which is $2,000 more than the previous year. At age 50 participants can contribute an extra $7,500 so their contribution limit becomes $30,000. In most cases, you are obligated to begin taking minimum distributions from your 401(k) or other defined-contribution plans at age 73. Withdrawals are taxed as ordinary income and, if withdrawn prior to age 59½, may incur a 10% federal income tax penalty.
SIMPLE Accounts The limit on contributions to this incentive match plan for L3Harris employees will be $15,500 in 2023, after a $1,500 increase. The following are the reasons why you can’t withdraw money from your SIMPLE account: Just like a traditional IRA, you must start receiving your SIMPLE account distribution at age 73. Withdrawals are taxed as ordinary income and, if withdrawn prior to age 59½, may incur a 10% federal income tax penalty.
Important Note:
This post is meant to be informative only and therefore you should seek advice from a tax or accounting professional before you modify your 2018 tax plan.
Stripped Fact:
Here is some new information for employees of L3Harris companies in 2023: The annual limit on Health Savings Account (HSA) contributions has risen for the first time. The IRS has raised the HSA contribution limit for people with high-deductible health plans covering only themselves to $3,700 from $3,650 in the previous year. The HSA contribution limit for people with family coverage plans will now be $7,400 which is $100 more. Because of these higher contribution limits, L3Harris employees can save more in an HSA in order to fund future healthcare expenses and do so in a way that is taxed far less aggressively, which will serve as a big help in retirement. (Source: IRS.gov, Revenue Procedure 2022-48, November 2022)
Stripped Analogy:
Your retirement savings should be thought of as a perfectly calculated recipe that if properly followed will result in a happy and wealthy future. Just as a good chef will have to put more of this or that into the dish to make it taste better, retirement contributions for L3Harris employees also need to be optimized for the best financial result. The 2023 retirement contribution limits are the special ingredient that will make your retirement plan taste better. Just as salt adds flavor to food, then you will be able to put more money into your retirement accounts. Just as it helps to bring out the flavor of a dish, it will be to your benefit to contribute to your retirement accounts up to the new limits. So, use these limits as the key to your retirement recipe and through their help, make sure that you can enjoy your golden years to the fullest.
Featured Video
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Sources:
1. Internal Revenue Service. 'Retirement Topics - IRA Contribution Limits.' IRS, July 2023, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits .
2. Internal Revenue Service. 'Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans.' IRS, January 2024, https://www.irs.gov/publications/p969 .
3. Internal Revenue Service. 'Retirement Topics - 401(k) and Profit-Sharing Plan Contribution Limits.' IRS, July 2023, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits .
4. Fidelity Investments. 'HSA Contribution Limits 2024.' Fidelity Investments, January 2024, https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits .
5. Internal Revenue Service. 'Taxpayers Should Review the 401(k) and IRA Limit Increases for 2023.' IRS, November 2022, https://www.irs.gov/newsroom/taxpayers-should-review-the-401k-and-ira-limit-increases-for-2023 .
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.
Pension Options at Retirement: L3Harris Technologies employees have various pension benefit options to consider at retirement, such as life annuities, contingent annuities, and lump-sum payouts(L3Harris Technologies I…). Each option has different tax treatments, survivor benefits, and guarantees. For example, selecting a life annuity ensures a fixed monthly payment for life, while a lump-sum payout might offer more flexibility but comes with immediate tax implications. Employees should evaluate how each option aligns with their long-term financial goals and whether it provides adequate survivor protection for dependents(L3Harris Technologies I…).
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.
Appealing Denied Claims: L3Harris Technologies employees must follow a formal process to appeal denied pension benefit claims(L3Harris Technologies I…). The process includes submitting an appeal within a specific timeframe and providing supporting documentation. It is important to be familiar with the statute of limitations and administrative remedies to ensure the best chance of success when appealing a decision(L3Harris Technologies I…).
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.
Retirement Counseling Resources: L3Harris provides personalized retirement counseling services to assist employees with their pension and retirement planning(L3Harris Technologies I…). These resources include individual sessions to discuss how pension benefits fit into overall retirement strategies. By leveraging these services, employees can make well-informed decisions about their financial future(L3Harris Technologies I…).
How can employees of L3Harris Technologies find out more about their eligibility for the Cash Balance Plan and the advantages of this plan over traditional pension formulas? Employees should research what defines an "active Cash Balance Plan Participant" as well as the benefit calculations associated with it. Investigating the elements that set this type of plan apart—specifically regarding lump-sum distributions and the ability to track benefits—can better inform employees about the potential advantages for their future retirement income.
Cash Balance Plan: Employees interested in the Cash Balance Plan can research its advantages over traditional pension formulas. The Cash Balance Plan allows for lump-sum distributions and provides clear benefit tracking, which can be more appealing to employees looking for flexibility and control over their retirement funds(L3Harris Technologies I…).
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.
Plan Changes: L3Harris employees should stay updated on any changes to the pension plan, which could impact their benefits(L3Harris Technologies I…). Monitoring communications from the company and understanding their rights under ERISA is essential to making timely decisions based on new plan terms or amendments(L3Harris Technologies I…).
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…).
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
.webp?width=300&height=200&name=office-builing-main-lobby%20(27).webp)
-2.png)
.webp)