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

Beyond the 401k Cap: Advanced Retirement Tactics for Harsco Employees

Healthcare Provider Update: Healthcare Provider for Harsco Harsco Corporation, a global supplier of industrial services and engineered products, typically partners with prominent healthcare providers for employee health plans. Among the notable providers, Aetna often serves as a primary healthcare partner, offering comprehensive health insurance solutions, including medical, dental, and wellness programs tailored to the needs of Harsco employees. Potential Healthcare Cost Increases in 2026 As we look to 2026, healthcare costs are anticipated to surge significantly, driven by a confluence of factors. With many states facing imposed premium hikes of over 60%, particularly for Affordable Care Act (ACA) marketplace plans, employees of Harsco may experience drastic changes in their out-of-pocket healthcare expenses. The potential expiration of enhanced federal premium subsidies will amplify these increases, with more than 22 million enrollees projected to see monthly costs rise by an average of 75%. Coupled with escalating medical costs and aggressive rate adjustments from top insurers, navigating the healthcare landscape will require strategic planning to mitigate financial impacts. Click here to learn more

'By leveraging health savings accounts, Roth conversion pathways, annuities, and intentional asset location, Harsco employees can reduce their lifetime tax burden and establish a diversified suite of retirement income sources.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

'By thoughtfully combining health savings accounts, Roth conversion strategies, and strategic asset placement, Harsco employees can optimize tax efficiency and bolster their retirement income flexibility.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Leveraging Health Savings Accounts and tax-advantaged rollovers to extend retirement savings.
Advanced Roth strategies (backdoor and mega backdoor) for high-income earners.
Using annuities and tax-efficient brokerage techniques to diversify and preserve assets.

High-Income Earners’ Advanced Retirement Savings Strategies

Retirement planning presents unique opportunities and challenges for Harsco employees who have reached the IRS limit on 401k contributions or whose income prevents direct Roth IRA funding. To build on strong saving habits and substantial assets, it help to understand alternative techniques that extend tax-advantaged growth beyond traditional workplace plans.

1. Health Savings Accounts (HSAs) as a Long-Term Investment Vehicle

Health Savings Accounts offer a remarkable “triple tax advantage”: contributions reduce taxable income, investment growth is tax-free, and qualified medical withdrawals remain untaxed, making HSAs one of the most efficient savings tools available. Harsco employees enrolled in a high-deductible health plan can contribute up to the 2025 IRS caps—$4,300 for self-only coverage and $8,550 for family coverage, plus a $1,000 catch-up for those 55 and older. ¹ Non-medical withdrawals after age 65 incur ordinary income tax (but no penalty), enhancing flexibility, while premature non-qualified distributions face a 20% penalty, underscoring the need for disciplined planning.

2. The Backdoor Roth IRA: Unlocking Tax-Free Growth

Although direct Roth IRA contributions phase out at higher incomes, Harsco employees can still tap a backdoor Roth IRA by making a non-deductible contribution to a traditional IRA and immediately converting to a Roth. ² The IRS’s pro-rata aggregation rules require careful calculation when you hold other traditional IRAs, as conversions consider the aggregate pre- and after-tax balances, potentially triggering tax liabilities. Given the IRA contribution limit of $7,000 ($8,000 for those age 50 and above), working with a financial advisor can help facilitate smooth execution and manage potential tax on conversions.

3. The Mega Backdoor Roth: Supercharging Roth Savings

For those with eligible employer plans, the “mega backdoor Roth” ³ can significantly boost Roth balances by contributing after-tax dollars above standard 401k limits and then rolling them into a Roth IRA or Roth 401k via in-service distributions. With 2025 combined employee/employer contribution caps of $70,000 (or $77,500 including catch-ups), ⁴ this strategy can create substantial additional tax-free retirement income. Because only about 20% of plans offer the necessary features, confirm with HR whether your Harsco plan supports after-tax contributions and in-service rollovers, and coordinate with advisors to optimize timing and tax efficiency.

4. Tax-Deferred Annuities to Extend Tax-Advantaged Savings

When you’ve exhausted IRAs and employer plans, tax-deferred annuities provide another avenue to shelter earnings from current taxation. Fixed annuities offer a stable interest rate, while variable annuities invest in market-linked subaccounts—allowing reallocation without immediate tax events. ⁵ Although earnings and withdrawals are taxed as ordinary income and early withdrawals before age 59½ may incur a 10% penalty, annuities can include income commitments or death benefits. Before adding an annuity, Harsco employees should evaluate fees, investment options, and the insurer’s strength to confirm alignment with overall retirement goals.

5. Tax-Efficient Techniques in Brokerage Accounts

In addition to having no contribution limits, taxable accounts offer considerable flexibility and asset choice. Harsco employees can enhance after-tax returns by favoring low-turnover ETFs for tax efficiency, selecting tax-managed mutual funds, and using separately managed accounts (SMAs) for bespoke strategies like tax-loss harvesting. Strategic asset location—placing tax-inefficient bonds in IRAs/401ks and tax-efficient equities or municipal bonds in brokerage—can further reduce annual tax drag. ⁶ According to Vanguard, disciplined asset placement can boost after-tax wealth by up to 0.30% per year, ⁷ demonstrating the value of meticulous tax management.

Conclusion

After reaching the contribution limit on your Harsco 401k, advanced tactics such as HSAs, backdoor and mega backdoor Roth IRAs, tax-deferred annuities, and tax-efficient brokerage strategies allow high-income earners to diversify retirement income sources and mitigate lifetime taxes. Staying informed on IRS rules—like the SECURE 2.0 Act’s changes—and using tools such as Qualified Charitable Distributions can further help manage required distributions and Medicare implications. Proactive planning and professional guidance help make every dollar saved work harder for your retirement goals.

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Sources:

1. Internal Revenue Service. ' Revenue Proclamation 2024-25 .' Accessed 31 July 2025.

2. Fidelity Investments. “ Backdoor Roth IRA: Is It Right for You? ” Fidelity Viewpoints, 19 Dec. 2024. Accessed 13 July 2025.

3. MarketWatch. “ This Roth Strategy Lets Elite Savers Stash $70,000 in Their 401(k) in 2025 ,” by Vanessa Wong, 20 Nov. 2024. Accessed 13 July 2025.

4. IRS. ' 401(k) limit increases to $#23,500 for 2025, IRA limit remains $7,000 ,' 1 Nov. 2024. Accessed 31 July 2025.

5. Investopedia. “ Annuities Taxation Explained: What You Need to Know Before Investing ,” by The Investopedia Team, 15 June 2024. Accessed 13 July 2025.

6. Charles Schwab. “ How Asset Location Can Help Save on Taxes ,” by Hayden Adams, 11 Oct. 2024. Accessed 13 July 2025.

7. Vaguard. ' Asset location can lead to lower taxes. Here's how to get more value, ' 16 Aug. 2024. Accessed 31 July 2025.

How does the Harsco Pension Scheme ensure that investment strategies align with the financial goals of its members, and what measures are in place to assess the adequacy of these strategies over time? Given the complexities involved in managing a pension scheme, understanding the decision-making processes and the criteria for evaluating fund performance is crucial for members to make informed retirement choices.

Investment Strategy Alignment: The Harsco Pension Scheme ensures that its investment strategies align with members' financial goals by regularly reviewing its Statement of Investment Principles (SIP) and adjusting strategies based on quarterly performance monitoring. The Trustees use tools such as LCP Visualise to track investment returns and funding levels, ensuring the Scheme is on track for full funding by 2025. This review process helps guarantee that the investment strategies are adequately meeting long-term goals and adapting to market conditions(Harsco Pension Scheme_3…).

In what ways does the Harsco Pension Scheme engage with its investment managers to ensure transparency and stewardship in voting on significant shareholder resolutions? Exploring how Harsco collaborates with these managers can shed light on the efficacy of decision-making and the importance of governance in the scheme's investment practices.

Engagement with Investment Managers: The Harsco Pension Scheme engages closely with its investment managers, delegating stewardship activities like voting on shareholder resolutions. These managers, such as BlackRock, follow rigorous voting and engagement policies, which are reviewed regularly. The Trustees ensure transparency by monitoring managers’ ESG integration and voting behaviors and by addressing significant issues, such as modern slavery or climate risks(Harsco Pension Scheme_3…).

What are the specific retirement benefits available to employees under the Harsco Pension Scheme, and how can members customize their retirement strategies to fit their individual needs? This question addresses the diversity of retirement options and the potential for tailoring plans to meet unique financial situations.

Retirement Benefits Customization: The Harsco Pension Scheme offers a range of retirement options, including default and self-select investment options that reflect member demographics and retirement preferences. Members can customize their retirement strategies through diversified funds, ensuring their investments are aligned with individual needs. The default strategy has been reviewed to ensure appropriateness for the majority, with options for drawdown, lump-sum withdrawals, or annuity purchases(Harsco Pension Scheme_3…).

How does the Harsco Pension Scheme handle the changing demographics of its membership, especially in terms of investment risk and available retirement options? Understanding how the scheme adapts to demographic trends can help employees anticipate changes that may affect their retirement savings and strategies.

Adapting to Demographic Changes: The Trustees monitor demographic trends and adapt the Scheme’s investment strategies accordingly. For example, as the Scheme matures, the investment allocation moves towards lower-risk assets to reflect the changing membership profile. Regular reviews ensure the Scheme adapts to the evolving needs of its members, helping to reduce risk while maintaining adequate returns(Harsco Pension Scheme_3…).

What is the process for Harsco employees to access their pension statements, and how frequently are these updates provided to ensure that members stay informed about their retirement savings progress? Regular communication about contributions and growth can significantly impact an employee's comfort level when planning for retirement.

Pension Statement Access: Harsco employees can access their pension statements through regular updates provided by the Trustees, typically on a quarterly basis. These statements, including detailed reports of contributions, investment growth, and progress toward retirement goals, help members stay informed and make adjustments as necessary(Harsco Pension Scheme_3…).

How does Harsco incorporate Environmental, Social, and Governance (ESG) considerations into its investment philosophy, and what impact do these principles have on the pension schemeâ€™s performance? A deeper examination into these aspects may enhance employee understanding of socially responsible investing trends within their pension fund.

ESG Considerations: The Harsco Pension Scheme integrates Environmental, Social, and Governance (ESG) principles into its investment strategy, regularly assessing its managers’ ESG practices. These assessments include human rights, climate change, and CEO pay ratios, ensuring that investments are socially responsible and aligned with long-term sustainability goals(Harsco Pension Scheme_3…).

What are the implications of the current IRS limits on contributions to retirement plans for employees participating in the Harsco Pension Scheme in 2024? Recognizing how these financial regulations impact personal contributions and matching funds can empower employees to maximize their retirement funding strategies.

IRS Limits Impact: The current IRS limits on contributions to retirement plans, such as those applicable in 2024, directly impact Harsco employees by capping how much they can contribute tax-free. Understanding these limits helps employees plan their contributions to maximize employer matching and ensure they take full advantage of their retirement benefits(Harsco Pension Scheme_3…).

With regards to the ongoing performance evaluations, what benchmarks does the Harsco Pension Scheme utilize to measure the success of its investments, and how are these benchmarks selected? This insight can help employees understand the performance metrics that drive the long-term viability of their pension scheme.

Benchmarking Investments: The Harsco Pension Scheme uses various benchmarks to assess the performance of its investments. These benchmarks are selected based on expected risk and return profiles and are reviewed quarterly. Monitoring against these benchmarks ensures that the Scheme’s strategies remain aligned with long-term funding goals and adapt to changing market conditions(Harsco Pension Scheme_3…).

How can Harsco employees obtain more information on the specific investment options available within the pension scheme, including the associated risks and potential returns? Access to comprehensive investment literature is essential for employees to make well-informed decisions regarding their pension scheme participation.

Investment Options and Information: Harsco employees can obtain detailed information about their pension’s investment options, including the associated risks and potential returns, through regular reports from the Trustees and investment consultants. This transparency allows employees to make informed decisions about their pension participation(Harsco Pension Scheme_3…).

What is the preferred method for employees to contact Harsco to gain further clarification on their questions about the pension scheme, and what resources are available for them during the retirement process? Clear communication channels and support mechanisms are vital as employees navigate their retirement preparations. These questions are designed to provoke thought and discussion around the operations, benefits, and governance of the Harsco Pension Scheme while providing employees with a foundation for understanding their retirement options.

Communication Channels: Employees can contact the Trustees of the Harsco Pension Scheme for clarification on pension-related questions through established communication channels. Resources, including personalized financial advice and regular meetings with investment managers, are available to assist employees during the retirement planning process(Harsco Pension Scheme_3…).

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

Name of Pension Plan: Identify the name of the pension plan. Years of Service and Age Qualification: Determine the requirements for employees to qualify for the pension plan. Pension Formula: Understand how the pension is calculated. Company 401(k) Plan: Name of 401(k) Plan: Identify the name of the 401(k) plan. Qualification for 401(k) Plan: Determine who qualifies for participation in the 401(k) plan.

Harsco announced a significant restructuring plan in early 2023 aimed at streamlining its operations and reducing costs. This included a series of layoffs across various divisions. The company projected that these measures would improve operational efficiency and align with its strategic goals.

Harsco offers stock options and RSUs to its employees as part of its compensation package. The company's stock options are designated as SOs, while RSUs are referred to as RSUs. For the years 2022, 2023, and 2024, Harsco has made stock options and RSUs available to key employees, including executives and high-performance staff.

Harsco’s official website, the benefits section details various health benefits, including medical, dental, and vision coverage. They offer a range of plans including PPO and HDHP (High Deductible Health Plans) with HSA (Health Savings Accounts) options. They also provide wellness programs, mental health resources, and employee assistance programs. Company Reviews and Job Boards: Sites like Glassdoor and Indeed reveal employee reviews about Harsco’s health benefits. Many reviews mention the company’s competitive benefits package, including health insurance, dental, and vision plans. However, some employees noted that the benefits could be improved, particularly in terms of coverage and cost. Industry Reports: Industry reports and compensation studies indicate that Harsco’s health benefits are generally in line with industry standards. The company provides a range of healthcare options with a focus on comprehensive coverage and preventive care.