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

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'Xilinx 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.'

'Xilinx 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. Xilinx 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 Xilinx 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. Xilinx 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 401(k) plan offered by Xilinx?

The 401(k) plan offered by Xilinx is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

Does Xilinx match contributions to the 401(k) plan?

Yes, Xilinx offers a matching contribution to the 401(k) plan, which helps employees boost their retirement savings.

What is the maximum contribution limit for Xilinx's 401(k) plan?

The maximum contribution limit for Xilinx's 401(k) plan is subject to IRS regulations, which can change annually. Employees should check the latest guidelines for the specific limit.

Can employees at Xilinx choose how their 401(k) funds are invested?

Yes, employees at Xilinx can choose from a variety of investment options within the 401(k) plan to align with their financial goals.

When can Xilinx employees start contributing to the 401(k) plan?

Xilinx employees can typically start contributing to the 401(k) plan after completing a specified period of employment, often within the first few months.

What types of contributions can Xilinx employees make to their 401(k) plan?

Employees at Xilinx can make pre-tax contributions, Roth (after-tax) contributions, and potentially catch-up contributions if they are age 50 or older.

Is there a vesting schedule for the employer match in Xilinx's 401(k) plan?

Yes, Xilinx has a vesting schedule for the employer match, which means employees must work for a certain period before they fully own the matched funds.

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

Xilinx employees can access their 401(k) account information through the plan's online portal or by contacting the plan administrator.

What happens to my 401(k) account if I leave Xilinx?

If you leave Xilinx, you have several options for your 401(k) account, including rolling it over to another retirement account, cashing it out, or leaving it in the Xilinx plan if eligible.

Are there any fees associated with Xilinx's 401(k) plan?

Yes, there may be administrative fees associated with Xilinx's 401(k) plan, which are disclosed in the plan documents provided to employees.