New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Honeywell International Inc. Employees: Smarter Ways to Manage Taxes on Appreciated Stock

Healthcare Provider Update: Healthcare Provider for Honeywell International Inc. Honeywell International Inc. provides healthcare benefits primarily through its internal resources and partnerships with various healthcare providers. The specific healthcare providers utilized may vary by region and plan, but protocols like a mix of traditional health plans and consumer-driven health plans characterize their approach. It's essential for employees to refer to the Honeywell benefits portal for precise details regarding their healthcare options. --- Potential Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are anticipated to surge significantly, driven by a convergence of factors. Insurers in the Affordable Care Act (ACA) marketplace are forecasting premium hikes that could average around 20%, with some states experiencing increases over 60%. A major contributing factor is the potential expiration of enhanced federal premium subsidies, which would lead to an alarming rise in out-of-pocket expenses for policyholders-potentially increasing by over 75%. This perfect storm of rising medical costs, intensified by inflation and recovery from the pandemic, underscores the critical need for individuals to assess their healthcare plans and financial strategies in preparation for these changes. Click here to learn more

'Honeywell International Inc. 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.

'Honeywell International Inc. 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.' Honeywell International Inc. 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. Honeywell International Inc. 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 Honeywell International Inc. 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 Honeywell International Inc. 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 Honeywell International Inc. 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 Honeywell International Inc. 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 Honeywell International Inc. 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 Honeywell International Inc. employees who hold highly-appreciated stock.

Featured Video

Articles you may find interesting:

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 Honeywell International Inc. offer to its employees?

Honeywell International Inc. offers a 401(k) retirement savings plan to its employees.

Does Honeywell International Inc. provide a company match for employee contributions to the 401(k) plan?

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

How can employees at Honeywell International Inc. enroll in the 401(k) plan?

Employees at Honeywell International Inc. can enroll in the 401(k) plan through the company's benefits portal or by contacting the HR department.

What is the eligibility criteria for Honeywell International Inc. employees to participate in the 401(k) plan?

Most employees of Honeywell International Inc. are eligible to participate in the 401(k) plan after completing a specified period of service.

Can employees of Honeywell International Inc. take loans against their 401(k) savings?

Yes, Honeywell International Inc. allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What investment options are available in the Honeywell International Inc. 401(k) plan?

The Honeywell International Inc. 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

How often can employees at Honeywell International Inc. change their 401(k) contribution amounts?

Employees at Honeywell International Inc. can change their 401(k) contribution amounts at any time, subject to plan rules.

What is the vesting schedule for employer contributions in the Honeywell International Inc. 401(k) plan?

The vesting schedule for employer contributions in the Honeywell International Inc. 401(k) plan varies, and employees should refer to the plan documents for specific details.

Are there any fees associated with the Honeywell International Inc. 401(k) plan?

Yes, there may be fees associated with the Honeywell International Inc. 401(k) plan, which can include administrative fees and investment fund expenses.

How does Honeywell International Inc. communicate changes to the 401(k) plan to its employees?

Honeywell International Inc. communicates changes to the 401(k) plan through official company emails, newsletters, and updates on the employee benefits portal.

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

Honeywell offers a 401(k) plan that includes various contribution options: pretax, Roth 401(k), or after-tax. The company matches 87.5% of the first 8% of eligible pay contributed by employees, up to 7% of base salary.

Honeywell provides RSUs to its executives and eligible employees. RSUs vest over a three to four-year period, promoting alignment with long-term company performance.