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Crown Holdings Employees: Smarter Ways to Manage Taxes on Appreciated Stock

Healthcare Provider Update: Healthcare Provider for Crown Holdings Crown Holdings does not directly provide its own health insurance. Instead, it offers health insurance coverage to its employees through major national insurers such as UnitedHealthcare and Anthem Blue Cross Blue Shield, which are likely candidates given their prominence in corporate healthcare plans. Brief Overview of Potential Healthcare Cost Increases in 2026 As we approach 2026, Crown Holdings faces challenges with rising healthcare costs. Estimated health insurance premiums for plans under the Affordable Care Act (ACA) are projected to surge, with some states experiencing hikes exceeding 60%. This dramatic increase, coupled with the potential expiration of enhanced federal premium subsidies, could lead to out-of-pocket costs skyrocketing for about 92% of marketplace enrollees, including those associated with Crown Holdings. Employees are encouraged to review their benefit options early and strategize to mitigate impending financial pressures in light of these escalating costs. Click here to learn more

'Crown Holdings 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.

'Crown Holdings 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.' Crown Holdings 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. Crown Holdings 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 Crown Holdings 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 Crown Holdings 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 Crown Holdings 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 Crown Holdings 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 Crown Holdings 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 Crown Holdings 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 Crown Holdings offer to its employees?

Crown Holdings offers a 401(k) retirement savings plan to its employees.

Does Crown Holdings provide a company match for contributions made to the 401(k) plan?

Yes, Crown Holdings provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

What is the eligibility requirement to participate in Crown Holdings' 401(k) plan?

Employees of Crown Holdings are typically eligible to participate in the 401(k) plan after completing a specified period of service.

How can Crown Holdings employees enroll in the 401(k) plan?

Crown Holdings employees can enroll in the 401(k) plan through the company's HR portal or by contacting the HR department for guidance.

What investment options are available in Crown Holdings' 401(k) plan?

Crown Holdings offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

Are there any fees associated with Crown Holdings' 401(k) plan?

Yes, there may be fees associated with managing the 401(k) plan at Crown Holdings, which are disclosed in the plan documents.

Can Crown Holdings employees take loans against their 401(k) savings?

Yes, Crown Holdings allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What happens to my Crown Holdings 401(k) if I leave the company?

If you leave Crown Holdings, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the Crown Holdings plan if permitted.

Does Crown Holdings offer hardship withdrawals from the 401(k) plan?

Yes, Crown Holdings allows hardship withdrawals under certain circumstances as defined by the IRS and the plan rules.

How often can Crown Holdings employees change their contribution amounts to the 401(k) plan?

Crown Holdings employees can typically change their contribution amounts on a quarterly basis or as specified in the plan guidelines.

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

Crown Holdings announced a significant restructuring plan in early 2024, including layoffs and consolidation of operations across several divisions.

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For more information you can reach the plan administrator for Crown Holdings at 770 Township Line Rd. Yardley, PA 19067; or by calling them at 215-698-5100.