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Boston Properties Employees: Smarter Ways to Manage Taxes on Appreciated Stock

Healthcare Provider Update: Healthcare Provider for Boston Properties Boston Properties, a prominent real estate investment trust, typically offers its employees a range of health insurance options through various providers. Among the main insurers likely to serve its workforce are UnitedHealthcare, Anthem, and Aetna, which already operate substantial networks in the regions where Boston Properties is active. Potential Healthcare Cost Increases in 2026 In 2026, Boston Properties employees can expect significant increases in healthcare costs, primarily driven by anticipated hikes in Affordable Care Act (ACA) marketplace premiums. With some states reporting increases of over 60%, the loss of enhanced federal premium subsidies is expected to adversely affect the majority of marketplace enrollees. This may result in out-of-pocket premium costs rising by as much as 75% for many individuals. Employees of Boston Properties should proactively assess their health insurance options and prepare for these potentially steep costs as they plan for their upcoming healthcare needs. Click here to learn more

'Boston Properties employees with concentrated stock positions may benefit from thoughtful tax planning that allows for tax deferral while balancing liquidity, compliance, and long-term compounding,' Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Boston Properties employees who hold highly-appreciated stock may want to consider tax-efficient strategies that help mitigate their liabilities while aligning with their overall retirement goals,' Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How taxes can affect investment returns, particularly on concentrated stock positions.
Exchange funds and options-based strategies as methods for tax deferral and diversification.
Alternative planning techniques outside ETFs, including charitable trusts and gifting strategies.

By Carlos Hernandez, Wealth Enhancement advisor

When it comes to driving portfolio returns, many investors aim to keep management fees low by investing in low-cost index funds and exchange-traded funds (ETFs). While fees matter, however, the real culprit for lower-than-anticipated performance is taxes. ¹

Wealth Enhancement advisor Carlos Hernandez explains: 'By losing less to taxes each year, investors have access to more capital that can continue to compound over time. This makes tax deferral an important part of an effective financial plan.' Boston Properties employees looking for long-term growth strategies could benefit by understanding how to better manage their investment tax burdens.

Trade Money

One area where taxes can take a toll is on the sale of company stock or other concentrated investment positions. Boston Properties professionals looking to diversify could face significant capital gains taxes on an outright sale. One way to diversify without triggering immediate capital gains is through exchange funds. By contributing their highy-appreciated stock to a pooled fund, investors can trade their concentrated holdings for shares in a diverse basket of securities. This method can be used by Boston Properties employees who want to diversify while postponing taxable events.

Although this method allows for tax deferral, it also requires investors to hold the exchange fund for a period of time, typically seven years. ² This could create a challenge for investors who require liquidity. Additionally, these funds are often exclusively accessible to wealthy, accredited investors—something Boston Properties executives should carefully evaluate.

Funds Based on Options

Another way to mitigate taxes on the sale of highly-appreciated stock is by using options contracts. The idea is to hedge risk with put options while covering the cost of those puts by selling call options—a strategy called 'collaring'. From there, the strategy reverses, with investors selling put options and using the proceeds to buy call option on an equity or bond index. ³ If managed effectively, this helps to diversify a concentrated portfolio while still maintaining liquidity.

Given the complexity of this strategy, meticulous planning is necessary. It's generally recommended that investors work with an experienced financial advisor before pursuing this approach.

Things to Be Aware of

Although these strategies can be beneficial for Boston Properties employees who hold highly-appreciated stock, caution is recommended. There are costs associated with these approaches, and potential liquidity risks. Additionally, the IRS may eventually contest such arrangements because their tax status has not been thoroughly examined—something Boston Properties retirees should keep top of mind.

'Tax drag reduction strategies can be effective, but they must be assessed through the lens of risk, liquidity, cost, and compliance,' warns Carlos Hernandez. What is appealing in theory must hold up to inspection in the real world.

Alternative Strategies

Although they show promise, investors with highly-appreciated stock or those looking to postpone gains have other alternatives besides exchange funds or options. Other tactics could include:

- Prepaid variable forwards (subject to IRS regulations, contracts to sell at predetermined terms in the future).
- Charitable remainder trusts (CRTs), which allow investors to donate appreciated stock to a charitable trust and receive a stream of regular income in return.
- Donor-advised funds (DAFs), which provide investors with a tax deduction for the fair market value of the appreciated stock they donate.
- Other gifting techniques, such as direct donations to charity or family.
Each has its own set of guidelines, advantages, and disadvantages. To limit unnecessary taxes or violating the constructive sale regulations, careful planning is necessary for Boston Properties professionals managing complex portfolios.

The Bottom Line

Although the movement to mitigate the tax burden on investments is not new, the instruments are changing. Both exchange funds and options-based structures offer investors a way to manage tax liabilities, especially for Boston Properties employees who hold highly-appreciated stock.

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In the end, taxes are unavoidable. However, with the correct set of instruments, they can be controlled and postponed. 'The real value comes from aligning tax strategy with investment strategy,' summarizes Carlos Hernandez.

Sources:

1. BlackRock Advisor Center. ' Investing for After-Tax Returns ,' 2025.

2. Kiplinger. ' Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings ,' by Robert Waskiewicz. Sep. 11, 2025.

3. Financial Planning Association. ' Tax-Efficient Ways to Diversify Concentrated Stock Positions ,' by Peter Lazaroff. Oct. 2024.

What type of retirement savings plan does Boston Properties offer to its employees?

Boston Properties offers a 401(k) retirement savings plan to its employees.

Does Boston Properties match employee contributions to the 401(k) plan?

Yes, Boston Properties provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

What is the eligibility requirement for Boston Properties employees to participate in the 401(k) plan?

Employees of Boston Properties are generally eligible to participate in the 401(k) plan after completing a specified period of service.

Can Boston Properties employees choose how their 401(k) contributions are invested?

Yes, employees at Boston Properties can choose from a variety of investment options for their 401(k) contributions.

Is there a vesting schedule for the employer match in the Boston Properties 401(k) plan?

Yes, Boston Properties has a vesting schedule for employer matching contributions, which outlines how long employees must work to fully own those contributions.

What are the contribution limits for the Boston Properties 401(k) plan?

The contribution limits for the Boston Properties 401(k) plan align with the IRS limits, which may change annually.

Can Boston Properties employees take loans against their 401(k) savings?

Yes, Boston Properties allows employees to take loans against their 401(k) savings, subject to the plan’s terms and conditions.

How can Boston Properties employees access their 401(k) account information?

Employees can access their 401(k) account information through the designated online portal provided by Boston Properties’ plan administrator.

Does Boston Properties offer a Roth 401(k) option?

Yes, Boston Properties offers a Roth 401(k) option, allowing employees to make after-tax contributions.

What happens to a Boston Properties employee's 401(k) account if they leave the company?

If a Boston Properties employee leaves the company, they can choose to roll over their 401(k) account to another retirement account or leave it with Boston Properties, subject to the plan's rules.

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

Layoffs and Restructuring: Boston Properties announced a significant restructuring plan, resulting in the layoff of approximately 10% of its workforce. The company is focusing on reducing operational costs and improving efficiency in response to current market conditions.

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For more information you can reach the plan administrator for Boston Properties at 800 Boylston St Boston, MA 2199; or by calling them at +1 617-236-3300.