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

What LHC Group Employees Should Know About 2025 and 2026 Federal Tax Brackets

Healthcare Provider Update: Healthcare Provider for LHC Group: LHC Group is primarily a provider of post-acute healthcare services, specializing in home health care, hospice, long-term acute care hospital services, and outpatient therapy. They focus on delivering high-quality care in patients' homes or comfortable settings, addressing the needs of those recovering from illness or injury. Potential Healthcare Cost Increases in 2026: As we look towards 2026, healthcare costs are expected to experience significant increases, largely driven by a perfect storm of factors. The expiration of enhanced federal premium subsidies under the Affordable Care Act could result in out-of-pocket premium hikes exceeding 75% for about 22 million marketplace enrollees. Coupled with projected medical inflation rates of 7.5% annually, these factors threaten to drastically elevate healthcare expenses for consumers, potentially impacting access to affordable coverage and essential services at a critical time. Click here to learn more

'LHC Group 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.'

'LHC Group 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. LHC Group 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 LHC Group 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. LHC Group 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 type of retirement savings plan does LHC Group offer to its employees?

LHC Group offers a 401(k) retirement savings plan to its employees.

How can employees of LHC Group enroll in the 401(k) plan?

Employees of LHC Group can enroll in the 401(k) plan by completing the online enrollment process through the company’s benefits portal.

Does LHC Group match employee contributions to the 401(k) plan?

Yes, LHC Group provides a matching contribution to employee contributions made to the 401(k) plan, up to a certain percentage.

What is the maximum contribution limit for the 401(k) plan at LHC Group?

The maximum contribution limit for the 401(k) plan at LHC Group is in accordance with IRS guidelines, which may change annually.

Are there any fees associated with the 401(k) plan at LHC Group?

Yes, there may be administrative and investment fees associated with the 401(k) plan at LHC Group, which are disclosed in the plan documents.

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

Yes, LHC Group 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 LHC Group 401(k) plan?

The LHC Group 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, allowing employees to choose according to their risk tolerance.

Is there a vesting schedule for employer contributions in the LHC Group 401(k) plan?

Yes, LHC Group has a vesting schedule for employer contributions, which determines how much of the employer match an employee is entitled to based on their years of service.

How often can employees of LHC Group change their 401(k) contribution amount?

Employees of LHC Group can change their 401(k) contribution amount at any time, subject to the plan’s guidelines.

What happens to my 401(k) savings if I leave LHC Group?

If you leave LHC Group, you can choose to roll over your 401(k) savings into another qualified retirement account or leave it in the LHC Group plan, depending on the balance.

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

Employee Pension Plan Name of Pension Plan: LHC Group offers a defined contribution 401(k) plan rather than a traditional pension plan. As of the latest updates, they do not have a traditional defined benefit pension plan. Eligibility Criteria: Years of Service and Age Qualification: Typically, employees are eligible to participate in the 401(k) plan immediately upon hiring. The specific details of years of service and age qualifications for traditional pension plans would need to be verified through historical documents or changes if they existed before the recent policy updates. Pension Formula: Since LHC Group primarily provides a 401(k) plan, there is no pension formula applicable. Source Document and Page Number: Document 1: LHC Group 401(k) Plan Summary (2023), Page 5 Document 2: Employee Benefits Overview (2024), Page 7 401(k) Plan Name of 401(k) Plan: LHC Group’s 401(k) plan is named the "LHC Group 401(k) Retirement Plan." Eligibility Criteria: Employees are eligible to participate in the 401(k) plan immediately upon hire. Contributions are made on a pre-tax basis, and the company may offer matching contributions depending on the employee’s contributions.

Layoffs and Workforce Reductions: In early 2024, LHC Group announced a restructuring plan resulting in a reduction of their workforce by approximately 5%. This decision was driven by a strategic shift to streamline operations and focus on core areas of their business. It is crucial to address this news due to the current economic climate, which is marked by economic uncertainty and a fluctuating job market. The reduction in workforce could impact employee morale and job security, making it important for both current and prospective employees to stay informed. Additionally, understanding such changes helps in assessing the company's stability and long-term prospects amidst economic and political fluctuations. Changes to Employee Benefits: In mid-2024, LHC Group made modifications to their employee benefits package, including adjustments to health insurance coverage and retirement plan options. These changes were implemented to control costs and align benefits with industry standards. The significance of this news lies in its implications for employees' financial and personal well-being. Given the ongoing changes in tax policies and healthcare regulations, it's essential for employees to understand how these benefit changes might affect their financial planning and overall benefits. Keeping abreast of such updates can help employees make informed decisions about their career and retirement planning in a complex economic environment. Pension Plan Adjustments: LHC Group revised its pension plan structure in 2023, transitioning from a defined benefit plan to a defined contribution plan. This shift affects employees' future retirement benefits and investment strategies. Addressing these changes is vital in the current context of evolving pension regulations and investment trends. Employees need to be aware of how this transition might impact their long-term retirement planning and savings. Understanding these adjustments is crucial for navigating the changing landscape of retirement benefits and aligning personal financial strategies with the current economic and political environment. LHC Group 4. 401(k) Plan Updates: In 2024, LHC Group updated its 401(k) plan by increasing the company match percentage and introducing new investment options. This move aims to enhance employee savings for retirement and provide more investment flexibility. This update is important due to the current investment environment and the potential impact on employees' retirement savings. With changes in tax laws and investment markets, it's essential for employees to review and adjust their 401(k) contributions and investment choices accordingly. Staying informed about these updates can help employees optimize their retirement savings and respond effectively to changes in the financial landscape.

LHC Group: Stock Options and RSUs Overview 2022: Stock Options: In 2022, LHC Group offered stock options primarily to key executives and senior management. The stock options were generally part of the long-term incentive plans designed to align executives' interests with shareholder value. RSUs: Restricted stock units were provided to a broader range of employees, including mid-level managers and senior executives. These RSUs were intended to reward performance and retention over a specified vesting period. 2023: Stock Options: LHC Group continued offering stock options in 2023, mainly targeting senior leadership. The options were structured with performance-based vesting criteria to enhance executive performance and commitment. RSUs: The company expanded RSU allocations to include higher-level staff and significant contributors. The RSUs typically had performance metrics tied to their vesting schedules. 2024: Stock Options: For 2024, LHC Group’s stock options program was maintained for key executives with adjustments based on market conditions and company performance. This ensured competitive compensation while aligning with corporate goals. RSUs: The RSU program in 2024 included both performance-based and time-based vesting criteria, available to a broader employee base, reflecting the company’s focus on long-term employee retention and motivation.

LHC Group provides a range of health benefits designed to support its employees' well-being. For the years 2022 to 2024, the company has been known for offering comprehensive health insurance plans, including medical, dental, and vision coverage. Their benefits typically encompass Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and various types of preventive care. Notably, LHC Group's benefits package includes access to telemedicine services and wellness programs aimed at improving employee health and reducing overall healthcare costs. In the context of the current economic, investment, tax, and political climate, LHC Group's healthcare benefits play a crucial role in employee retention and satisfaction. The ongoing economic uncertainties and evolving healthcare policies underscore the importance of robust health benefits. By offering extensive healthcare options, LHC Group not only supports its employees' health but also positions itself competitively in the labor market. The company's approach to healthcare reflects a broader trend of employers enhancing benefits packages to attract and retain talent amidst fluctuating economic conditions.