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What Kellogg Employees Should Know About 2025 and 2026 Federal Tax Brackets

Healthcare Provider Update: Healthcare Provider for Kellogg Kellogg Company, a global leader in food production, provides health benefits to its employees through a partnership with Blue Cross Blue Shield (BCBS). This collaboration allows Kellogg to offer comprehensive health insurance plans that cater to the diverse needs of its workforce. Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, Kellogg employees should be aware of impending healthcare cost increases expected in 2026. A combination of factors, including the potential expiration of enhanced federal premium subsidies under the Affordable Care Act, could lead to a significant rise in out-of-pocket health insurance expenses. Reports indicate that some employees may face premium hikes exceeding 60%, resulting in an overall increase in healthcare costs by up to 75% for many families. With major insurers announcing aggressive rate increases, it's crucial for employees to carefully evaluate their health coverage options and prepare for a potential financial impact. Click here to learn more

'Kellogg 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.'

'Kellogg 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. Kellogg 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 Kellogg 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. Kellogg 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.

What is the primary purpose of the 401(k) plan offered by Kellogg?

The primary purpose of the 401(k) plan offered by Kellogg is to help employees save for retirement by providing a tax-advantaged way to invest their earnings.

How does Kellogg match employee contributions to the 401(k) plan?

Kellogg matches employee contributions to the 401(k) plan up to a certain percentage of their salary, encouraging employees to save more for retirement.

When can employees of Kellogg start participating in the 401(k) plan?

Employees of Kellogg can typically start participating in the 401(k) plan after completing a specified period of employment, usually within the first year.

What types of investment options are available in Kellogg's 401(k) plan?

Kellogg's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their portfolios.

Can employees of Kellogg take loans against their 401(k) savings?

Yes, employees of Kellogg may have the option to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

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

Kellogg employees can typically change their contribution amounts to the 401(k) plan during designated enrollment periods or at any time as allowed by the plan rules.

What happens to Kellogg employees' 401(k) savings if they leave the company?

If Kellogg employees leave the company, they have several options for their 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the Kellogg plan if eligible.

Does Kellogg provide educational resources for employees regarding their 401(k) plan?

Yes, Kellogg provides educational resources and tools to help employees understand their 401(k) plan options and make informed investment decisions.

Is there a vesting schedule for Kellogg's 401(k) matching contributions?

Yes, Kellogg has a vesting schedule for its matching contributions, meaning employees must work for the company for a certain period before they fully own the matched funds.

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

Kellogg employees can access their 401(k) account information online through the plan's designated website or mobile app.

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

Kellogg Pension Plan: Eligibility: Varies by years of service and age. Specific requirements are detailed in each document. Pension Formula: Described in the respective annual reports and benefits guides. Name of Pension Plan: Mentioned in the provided pages. Kellogg 401(k) Plan: Eligibility: Details on who qualifies are included in each document. Name of 401(k) Plan: Found in the respective pages of the reports and guides.

In 2023, Kellogg announced a significant restructuring plan as part of its efforts to streamline operations and improve efficiency. The company planned to cut about 5% of its global workforce, which equates to approximately 2,000 jobs. This decision is attributed to Kellogg's need to adapt to changing consumer preferences and the competitive landscape of the food industry. This move is part of a broader trend among companies to realign their workforce to better meet market demands and operational efficiency. Given the current economic climate, such layoffs can impact job security and financial stability for many workers. Understanding these changes is crucial as they can influence investment decisions and economic forecasts.

Stock Options (SO): Allow employees to purchase company shares at a set price. They are typically granted as part of compensation packages and can be exercised after a vesting period. Restricted Stock Units (RSUs): Represent company shares given to employees as part of their compensation, which vest over time or based on performance metrics

Healthcare Benefits Overview: Kellogg offers a comprehensive health benefits package that includes medical, dental, and vision coverage. They provide options for Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA). Their health benefits include preventive care, telemedicine services, and wellness programs. Key Acronyms: HSA (Health Savings Account), FSA (Flexible Spending Account), EAP (Employee Assistance Program).