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

Healthcare Provider Update: Healthcare Provider for Boston Scientific Boston Scientific does not have a single healthcare provider; rather, employees may access healthcare through various plans that might include partnerships with major insurance carriers such as UnitedHealthcare, Cigna, and others. Specific details about available providers would vary based on the health plan chosen by employees. Potential Healthcare Cost Increases in 2026 As we approach 2026, Boston Scientific employees may face significant healthcare cost pressures exacerbated by anticipated increases in Affordable Care Act (ACA) marketplace premiums, some exceeding 60%. The confluence of rising medical expenses, a potential lapse of enhanced subsidy programs, and adjustments in employer-sponsored coverage models could see out-of-pocket costs for many employees increase dramatically. Companies like Boston Scientific, responding to these market forces, might shift more healthcare costs onto employees, making it crucial for them to understand upcoming benefit changes and explore financial strategies to mitigate the impact on their budgets. Click here to learn more

'Boston Scientific 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 Scientific 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 Scientific 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 Scientific 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 Scientific 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 Scientific 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 Scientific 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 Scientific 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 Scientific 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 Scientific 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 is the Boston Scientific 401(k) Savings Plan?

The Boston Scientific 401(k) Savings Plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or post-tax basis.

How can I enroll in the Boston Scientific 401(k) Savings Plan?

You can enroll in the Boston Scientific 401(k) Savings Plan by accessing the employee benefits portal or contacting the HR department for guidance on the enrollment process.

What types of contributions can I make to the Boston Scientific 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and, in some cases, catch-up contributions if they are age 50 or older, to the Boston Scientific 401(k) Savings Plan.

Does Boston Scientific offer a company match for 401(k) contributions?

Yes, Boston Scientific offers a company match for employee contributions to the 401(k) Savings Plan, which helps employees maximize their retirement savings.

What is the vesting schedule for the Boston Scientific 401(k) company match?

The vesting schedule for the Boston Scientific 401(k) company match typically follows a graded vesting schedule, where employees earn ownership of the match over a specified period of service.

Can I change my contribution rate to the Boston Scientific 401(k) Savings Plan?

Yes, you can change your contribution rate to the Boston Scientific 401(k) Savings Plan at any time by accessing the employee benefits portal or contacting HR.

What investment options are available in the Boston Scientific 401(k) Savings Plan?

The Boston Scientific 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

How can I access my Boston Scientific 401(k) account information?

You can access your Boston Scientific 401(k) account information by logging into the employee benefits portal or by contacting the plan administrator for assistance.

What happens to my Boston Scientific 401(k) Savings Plan if I leave the company?

If you leave Boston Scientific, you have several options for your 401(k) Savings Plan, including rolling it over to an IRA or another employer's plan, or cashing it out (subject to taxes and penalties).

Is there a loan provision in the Boston Scientific 401(k) Savings Plan?

Yes, the Boston Scientific 401(k) Savings Plan may offer a loan provision that allows employees to borrow against their account balance under certain conditions.

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

Boston Scientific recently announced a restructuring plan aimed at streamlining operations and cutting costs. This involves a reduction in workforce across several departments and a realignment of its business units.

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For more information you can reach the plan administrator for Boston Scientific at 300 Boston Scientific Way Marlborough, MA 1752; or by calling them at +1 508-683-4000.