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Healthcare Provider Update: Intel's Healthcare Provider and Upcoming Costs Intel primarily utilizes benefits through various healthcare providers, with many employees accessing plans from major insurers like UnitedHealthcare, Anthem Blue Cross Blue Shield, and others depending on geographical region and specific plan offerings. As we look ahead to 2026, healthcare costs are anticipated to rise significantly, potentially impacting Intel employees and their families. With ACA premium hikes exceeding 60% in some states and the expiration of enhanced federal subsidies looming, many individuals could see their premiums increase by over 75%. Additionally, a rising trend in medical expenses, driven by inflation and supply chain challenges, coupled with escalating pharmaceutical costs, threatens to further strain household budgets. Consequently, these developments necessitate strategic planning by Intel employees to alleviate the financial burden associated with healthcare coverage in the coming year. Click here to learn more
'Intel 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.'
'Intel 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:
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How federal tax brackets work and why they matter.
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How taxable income is calculated for retirement planning.
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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. Intel 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 Intel 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:
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- Single
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- Married filing jointly
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- Married filing separately
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- 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:
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- 10% on the first $23,850 → $2,385
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- 12% on $23,851 to $96,950 → $8,772
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- 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:
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- Contributing to traditional IRAs or employer retirement plans
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- Adding funds to an HSA if enrolled in a qualifying high-deductible health plan
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- Using tax-loss harvesting in taxable brokerage accounts
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- 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. Intel 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 Intel Pension Plan define the eligibility criteria for employees looking to retire, and what specific steps must they take to determine their benefit under the Intel Pension Plan?
Eligibility Criteria for Retirement: To be eligible for the Intel Pension Plan, employees must meet specific criteria, such as age and years of service. Benefits are calculated based on final average pay and years of service, and employees can determine their benefits by logging into their Fidelity NetBenefits account, where they can view their projected monthly benefit and explore different retirement dates(Intel_Pension_Plan_Dece…).
What are the implications of choosing between a lump-sum distribution and a monthly income from the Intel Pension Plan, and how can employees assess which option is best suited for their individual financial circumstances?
Lump-Sum vs. Monthly Income: Choosing between a lump-sum distribution and monthly income under the Intel Pension Plan depends on personal financial goals. A lump-sum provides flexibility but exposes retirees to market risk, while monthly payments offer consistent income. Employees should consider factors like their financial needs, life expectancy, and risk tolerance when deciding which option fits their situation(Intel_Pension_Plan_Dece…).
In what ways can changes in interest rates affect the lump-sum benefit calculation under the Intel Pension Plan, and why is it essential for employees to be proactive about their retirement planning concerning these fluctuations?
Interest Rates and Lump-Sum Calculations: Interest rates directly affect the lump-sum calculation, as higher rates reduce the present value of future payments, leading to a smaller lump-sum benefit. Therefore, it's crucial for employees to monitor interest rate trends when planning their retirement to avoid potential reductions in their lump-sum payout(Intel_Pension_Plan_Dece…).
How do factors like final average pay and years of service impact the pension benefits calculated under the Intel Pension Plan, and what resources are available for employees to estimate their potential benefits?
Impact of Final Average Pay and Years of Service: Pension benefits under the Intel Pension Plan are calculated using final average pay (highest-earning years) and years of service. Employees can use available tools, such as the Fidelity NetBenefits calculator, to estimate their potential pension based on these factors, giving them a clearer picture of their retirement income(Intel_Pension_Plan_Dece…).
How should employees approach their financial planning in light of their Intel Pension Plan benefits, and what role does risk tolerance play in deciding between a lump-sum payment and monthly income?
Financial Planning and Risk Tolerance: Employees should incorporate their pension plan benefits into broader financial planning. Those with a lower risk tolerance might prefer the steady income of monthly payments, while individuals willing to take investment risks might opt for the lump-sum payout. Balancing these decisions with other income sources is vital(Intel_Pension_Plan_Dece…).
What considerations should Intel employees evaluate regarding healthcare and insurance needs when transitioning into retirement, based on the guidelines established by the Intel Pension Plan?
Healthcare and Insurance Needs: Intel employees approaching retirement should carefully evaluate their healthcare options, including Medicare eligibility, private insurance, and the use of their SERMA accounts. Considering how healthcare costs fit into their retirement budget is crucial, as these costs will likely increase over time(Intel_Pension_Plan_Dece…).
How can employees maximize their benefits from the Intel Pension Plan by understanding the minimum pension benefit provision, and what steps can they take if their Retirement Contribution account falls short?
Maximizing Benefits with the Minimum Pension Provision: Employees can maximize their pension benefits by understanding the minimum pension benefit provision, which ensures that retirees receive a certain income even if their Retirement Contribution (RC) account balance is insufficient. Those whose RC accounts fall short will receive a benefit from the Minimum Pension Plan (MPP)(Intel_Pension_Plan_Dece…).
What resources does Intel offer to support employees in their retirement transition, including assessment tools and financial planning services tailored to those benefiting from the Intel Pension Plan?
Resources for Retirement Transition: Intel provides several resources to support employees' transition into retirement, including financial planning tools and access to Fidelity's retirement calculators. Employees can use these tools to run scenarios and determine the most beneficial pension options based on their financial goals(Intel_Pension_Plan_Dece…).
What strategies can retirees implement to manage taxes effectively when receiving payments from the Intel Pension Plan, and how do these strategies vary between lump-sum distributions and monthly income options?
Tax Strategies for Pension Payments: Managing taxes on pension payments requires strategic planning. Lump-sum distributions are often subject to immediate taxation, while monthly income is taxed as regular income. Retirees can explore tax-deferred accounts and other strategies to minimize their tax burden(Intel_Pension_Plan_Dece…).
How can employees of Intel contact Human Resources to get personalized assistance with their pension questions or concerns regarding the Intel Pension Plan, and what specific information should they be prepared to provide during this communication?
Contacting HR for Pension Assistance: Intel employees seeking assistance with their pension plan can contact HR for personalized support. It is recommended that they have their employee ID, retirement dates, and specific pension-related questions ready to expedite the process. HR can guide them through benefit calculations and options(Intel_Pension_Plan_Dece…).
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