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

What Berkshire hathaway Employees Should Know About 2025 and 2026 Federal Tax Brackets

Healthcare Provider Update: Healthcare Provider for Berkshire Hathaway: UnitedHealth Group Blog Post Paragraph on Potential Healthcare Cost Increases in 2026: As we look toward 2026, Berkshire Hathaway employees and many others in the United States may face significant challenges with healthcare costs. Current projections indicate that average premiums for Affordable Care Act (ACA) marketplace plans could rise sharply, with some states experiencing increases of over 60%. This surge is largely attributed to the possible expiration of enhanced federal subsidies, alongside escalating medical costs driven by factors such as expensive medications and hospital services. Experts warn that without renewed subsidies, millions of consumers could see their premiums more than double, putting healthcare access at risk for a substantial portion of the population. Consequently, proactive steps to manage these anticipated rises, such as optimizing health plan selections and maximizing health savings accounts, will be essential for both employees and employers alike. Click here to learn more

'Berkshire hathaway employees can benefit from understanding how progressive tax brackets influence long-term income planning,' explains Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement. 'That's why I encourage individuals to review these rules carefully and consult a qualified tax professional for guidance tailored to their situation.'

'Berkshire hathaway employees can gain clarity in their retirement planning by recognizing how federal tax brackets shape income decisions,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement. 'I encourage individuals to work with a qualified tax professional to evaluate how these rules may apply to their circumstances.'

In this article, we will discuss:

How federal tax brackets work and why they matter.
How taxable income is calculated for retirement planning.
Strategies that may help reduce taxable income.

Navigating taxes can feel more manageable when you understand how your income is allocated to various federal tax bands. Income tax is calculated by the IRS using seven brackets that adjust annually for inflation. You do not pay the same rate on every dollar you earn because income is taxed progressively. Instead, your taxable income is divided into ranges, each taxed at its own rate. Berkshire hathaway employees can benefit from understanding how their tax brackets may change as they prepare for retirement income decisions.

Below are the IRS’s official 2025 and 2026 bracket tables, along with an explanation of how federal brackets work. The Retirement Group can help review how these rules may influence your long-term income strategy. You can reach us at (800) 900-5867 .

How Federal Tax Brackets Work

The seven federal income tax brackets in the United States are 10%, 12%, 22%, 24%, 32%, 35%, and 37% .

This progressive structure means that each additional portion of income is taxed according to the next bracket as taxable income increases, which may be important for Berkshire hathaway employees reviewing future retirement income.

Your marginal tax rate applies to the last dollar of taxable income you earn. Your effective tax rate represents the overall percentage of income paid toward federal tax after all brackets are applied.

Your tax brackets also depend on the filing status you choose:

- Single
- Married filing jointly
- Married filing separately
- Head of household (single with a qualifying dependent)

The IRS adjusts these brackets every year to account for inflation.

How Your Taxable Income Is Calculated

To determine taxable income, start by adding all sources of taxable income, such as interest, qualifying pre-2019 alimony, tips, bonuses, and both employment and freelance earnings.

Next, subtract items already included on your W-2, such as contributions to a health savings account (HSA) or retirement plan contributions through your employer (401(k)).

Then subtract either your itemized deductions or the standard deduction—whichever applies. The remaining amount is your taxable income.

A Federal Effective Tax Rate Example

If a married couple with $150,000 in total income files jointly in 2025 and takes the standard deduction of $31,500 , their taxable income becomes $118,500 . Their federal tax calculation would look like this:

- 10% on the first $23,850 → $2,385
- 12% on $23,851 to $96,950 → $8,772
- 22% on the remaining amount up to $118,500 → $4,741

- Total federal income tax: $15,898

- Effective tax rate: approximately 10.6%

(All bracket values sourced from IRS inflation adjustment notices above.)

Possible Strategies to Lower Taxable Income

These approaches may help reduce taxable income and potentially push you into a lower tax bracket:

- Contributing to traditional IRAs or employer retirement plans
- Adding funds to an HSA if enrolled in a qualifying high-deductible health plan
- Using tax-loss harvesting in taxable brokerage accounts
- Considering the timing of controlled income, such as bonuses or freelance payments

Starting in 2026, taxpayers who do not itemize may deduct up to $1,000 (single filers) or $2,000 (married filing jointly) for eligible cash charitable contributions.

Do You Have Questions About How Taxes Influence Retirement?

Federal tax brackets play a key role in retirement planning, especially when reviewing withdrawal timing, Social Security decisions, and income sources. Berkshire hathaway employees can explore how tax rules fit into their broader retirement planning with guidance from The Retirement Group .

For personalized retirement discussions, call us at (800) 900-5867 .

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Sources:

1. Internal Revenue Service. Revenue Procedure 2024-40. 22 Oct. 2024,
https://www.irs.gov/pub/irs-drop/rp-24-40.pdf . Accessed 8 Dec. 2025.

2. Tax Policy Center. “How Do Federal Income Tax Rates Work?” Tax Policy Center Briefing Book , Jan. 2024,
https://www.taxpolicycenter.org/briefing-book/how-do-federal-income-tax-rates-work . Accessed 8 Dec. 2025.

3. Financial Industry Regulatory Authority (FINRA). “Retirement Accounts.” FINRA for Investors ,
https://www.finra.org/investors/investing/investment-accounts/retirement-accounts . Accessed 8 Dec. 2025.

4. Adams, Hayden. “Using Tax Brackets to Manage Your Taxable Income.” Charles Schwab , 12 Feb. 2025,
https://www.schwab.com/learn/story/using-tax-brackets-to-manage-your-taxable-income . Accessed 8 Dec. 2025.

5. Vanguard. “Year-End Tax-Savings Tips.” Vanguard Investor Resources & Education , 26 Aug. 2025,
https://investor.vanguard.com/investor-resources-education/article/year-end-tax-tips . Accessed 8 Dec. 2025.

How does the merger of the Johns Manville Employees Retirement Plan into the Berkshire Hathaway Consolidated Pension Plan specifically affect the retirement benefits for current employees at Johns Manville? In what ways can eligible employees of Johns Manville leverage the benefits of this merger to maximize their retirement planning?

Impact of Merger on Current Employees' Retirement Benefits: The merger of the Johns Manville Employees Retirement Plan into the Berkshire Hathaway Consolidated Pension Plan does not decrease the pension benefits previously earned by employees under their prior plans. Employees continue to receive the same benefits with the same payment options as provided by their prior plan. Any previous payment elections, beneficiary designations, and qualified domestic relations orders remain effective. This consolidation also maintains the insurance of pension benefits through the federal Pension Benefit Guaranty Corporation.

What are the implications for employees of Johns Manville if they choose to retire early prior to their Normal Retirement Age? How do the specific conditions set forth in the Berkshire Hathaway Consolidated Pension Plan guide early retirees from Johns Manville in making informed decisions regarding their benefit options?

Implications of Early Retirement: Employees of Johns Manville who choose to retire early, before their Normal Retirement Age, can still receive benefits. However, these benefits are adjusted based on the age of retirement. If an employee retires at 60, for instance, their monthly benefit payment from the plan will be reduced by a certain percentage for each month that the benefit payments start before the Normal Retirement Age. This reduction compensates for the longer period over which benefits are expected to be paid.

Given the unique characteristics of the Merged Plan, what should employees at Johns Manville consider when calculating their Average Final Salary, and how does this calculation impact their retirement benefits? Additionally, how is Covered Compensation factored into this adjustment, and what strategies can employees employ to ensure accurate calculations?

Calculation of Average Final Salary and Covered Compensation: When calculating the Average Final Salary for retirement benefits, it includes the highest-paid, five consecutive years out of the last ten years of employment. This calculation impacts the retirement benefits as it forms part of the formula used to determine the pension amount. Additionally, Covered Compensation, which refers to the average of the Social Security wage bases, is used to adjust portions of the salary in the benefits calculation, ensuring that the benefits align with national wage growth trends.

How can employees of Johns Manville navigate the various options available for retirement benefit payments outlined in the Berkshire Hathaway Consolidated Pension Plan? What key points should Johns Manville employees consider regarding the selection of forms of payment and potential tax implications in retirement?

Navigating Retirement Benefit Payment Options: Employees of Johns Manville need to consider the form of payment for their retirement benefits, as different options can have different tax implications and affect monthly income. Options typically include lump sums, annuities, or a combination. Employees should consider their financial needs, tax situation, and life expectancy when choosing the form of payment. Consulting with a financial advisor could be beneficial.

For employees at Johns Manville, what steps should they take to stay informed about their accumulated service and benefit service credits, particularly in relation to the changes brought about by the merger into the Berkshire Hathaway Consolidated Pension Plan? How do vested rights impact their eligibility for retirement benefits?

Staying Informed About Service Credits: To manage the transition and keep track of their service credits post-merger, Johns Manville employees should regularly review their service and benefit statements, maintain communication with the plan administrator, and attend any informational meetings or seminars offered by Berkshire Hathaway. Understanding how service credits are calculated and tracked ensures that employees can accurately plan for retirement.

What is the process for reemployment under the Terms of the Merged Plan for former employees of Johns Manville, and how can they ensure their accumulated benefit service is credited effectively upon rehire? What are the implications of this reemployment on their retirement benefits, particularly concerning their previous employment history?

Reemployment and Accumulated Benefits: Reemployed former employees of Johns Manville should verify how their accumulated benefits are treated upon their rehire. Generally, benefits accumulated during previous periods of employment will be credited upon rehire, but specific plan provisions should be consulted to confirm how reemployment affects accrued benefits and eligibility for additional benefits.

What do the terms of the Berkshire Hathaway Consolidated Pension Plan dictate regarding disability retirement benefits for eligible employees at Johns Manville? How should employees approach the application process for disability benefits, and what criteria do they need to be aware of to qualify?

Disability Retirement Benefits: Eligible employees of Johns Manville who become disabled according to the terms of the plan may qualify for disability retirement benefits. The process involves a determination by the plan administrator, and employees must meet specific criteria outlined in the plan documents to qualify. Understanding these criteria and the required documentation is crucial for accessing disability benefits.

How can employees of Johns Manville ensure they have adequate protection for their beneficiaries under the retirement provisions outlined in the Berkshire Hathaway Consolidated Pension Plan? What specific steps can employees take to secure these benefits, and how can they keep their beneficiary designations updated?

Beneficiary Protections: Employees should regularly review and update their beneficiary designations to ensure that their retirement benefits are distributed according to their wishes upon their death. This includes making any necessary changes following life events such as marriage, divorce, or the birth of a child.

How does participation in the Merged Plan differ for salaried and hourly employees of Johns Manville, and what specific eligibility criteria apply to each group? How can understanding these differences improve retirement planning for employees across the different classifications?

Differences in Participation for Salaried and Hourly Employees: The eligibility and benefits might differ between salaried and hourly employees under the Merged Plan. Understanding these differences helps employees make informed decisions about their retirement planning and benefit utilization.

How can employees of Johns Manville contact the Local Benefits Administrator for assistance regarding their retirement benefits and the contents of their plan documents? What are the recommended methods of communication for inquiries or requests regarding their Merged Plan benefits?

Contacting Local Benefits Administrator: Employees should contact their Local Benefits Administrator for any inquiries or assistance regarding their retirement plan. Keeping the contact information updated and consulting the administrator for guidance on plan provisions and benefit claims is advised for navigating their retirement benefits effectively.

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

Berkshire Hathaway offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Berkshire Hathaway provides financial planning resources and tools to help employees manage their retirement savings.

Berkshire Hathaway has agreed to a $10 million settlement in a long-running pension dispute involving Acme Brick. The company continues to offer comprehensive retirement benefits, including a defined benefit pension plan and a 401(k) plan. In today's political climate, it is important to stay informed about these benefits.

Berkshire Hathaway does not typically offer RSUs or stock options as part of its employee compensation packages, focusing on other forms of financial incentives and benefits.