5 Tax Moves L3Harris Employees Should Make Before Year-End

Healthcare Provider Update: Healthcare Provider for L3Harris L3Harris Technologies typically provides its employees with healthcare benefits through employer-sponsored insurance plans. The exact healthcare provider may vary based on location and specific employee circumstances, but major insurers commonly used include UnitedHealthcare, Anthem, and Cigna. Potential Healthcare Cost Increases in 2026 In 2026, L3Harris and similar employers are facing significant healthcare cost increases. Reports indicate a projected rise of approximately 8.5% in employer-sponsored insurance costs due to multiple inflationary pressures, including rising medical expenses and increased claims. Additionally, if the federal premium subsidies under the Affordable Care Act expire without renewal, employees may see a drastic rise in their out-of-pocket expenses, compounding the financial impact on both the company and its workforce. Employers are likely to respond by shifting more healthcare costs to employees, necessitating a proactive approach to managing these anticipated changes. Click here to learn more

L3Harris employees can maximize year-end planning by using credit card usage for deductible expenses and charitable donations that provide immediate tax benefits and long-term financial security, 'said Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group.

Adjusting withholdings, using IRA strategies and Qualified Charitable Distributions can help L3Harris employees avoid penalties and achieve a comfortable retirement, said Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article we will discuss:

1. Strategies to optimize L3Harris financial planning before the year ends.

2. Tax-saving ideas: strategic credit card use & charitable donations.

3. Techniques for long-term financial security - IRA borrowing and Social Security planning.

When it comes to L3Harris financial planning, implement strategies to optimize your fiscal health as the year winds down. This article details novel strategies to consider before December 31st to improve financial position with L3Harris.

Use of Strategic L3Harris Credit Cards.

Contrary to the conventional advice to cut back on credit card use, a prudent strategy involves using them to pay for deductible expenses. The tax benefit occurs on the date of charge, not on payment. That's especially useful for tax-deductible expenditures like real estate taxes and philanthropic contributions, provided they remain below USD 10,000. By following a monthly balance payment schedule, this approach maximizes tax deductions and takes advantage of credit card points without paying interest.

Charitable Contributions Through Decluttering

Often overlooked is getting L3Harris tax deductions for donating old personal items. And it's a tax benefit too. It involves recording the donated items, getting a receipt and ensuring the total worth is not more than USD 5,000, to avoid an appraisal. The deduction is equal to the current value of the item or its original price, whichever is less.

Adjusting Withholdings

L3Harris employees with supplemental income sources like side work must adjust their tax withholdings to avoid penalties. In increasing penalties for underpayment to 8%, the Internal Revenue Service stresses the need to pay at least 90% of an annual tax obligation by year's end. Withholdings are considered to have been uniformly applied throughout the year so one could potentially avoid such penalties by strategically enhancing withholdings near the end of the year.

Property Tax Payment Strategy

A USD 10,000 cap on state and local tax deductions and current interest rates over 5% on savings accounts have reduced the financial appeal of prepaying property taxes. Keep consistent payment schedules to maximize interest earned on savings accounts.

Use IRA for Short Term Liquidity.

When pressed for cash, borrowing from an IRA may be the smart move. That means repaying the borrowed funds within sixty days and only once every twelve months. Conforming to these regulations carries no penalty or tax.

Integrating Traditional End-of-Year Financial Moves.

These suggestions offer new perspectives, but should be used in addition to conventional end-of-year financial procedures rather than in place of them. The above strategies include grouping itemized deductions, optimizing contributions to L3Harris retirement accounts, maximizing medical savings accounts, evaluating Roth conversions, establishing donor-advised funds and capital loss harvesting.

Remember these recommendations should be considered supplements to your full L3Harris financial plan. You should consult a Certified Public Accountant (CPA) to tailor these recommendations for your specific financial situation. With the end of the year approaching, proactive financial planning measures may provide significant long-and short-term benefits.

Persons approaching or retiring from L3Harris - especially those around age 60 - need to understand Social Security benefits in terms of tax planning. Knowing when to start getting Social Security benefits is critical. Beneficiaries with large retirement accounts or other sources of income could see a big boost in their monthly benefit by delaying SS start age 70. This can maximize tax efficiency and long term financial stability. Postponing benefits until full retirement age of 70 produces an estimated 8% increase in benefits annually, according to a report from the Social Security Administration in 2021.

Year-end tax planning is like preparing a garden for winter. In the same way an arboriculturist trims excess vegetation, prunes undesirable plants and urban gardens late-season harvest crops, retirees should also carefully prune taxable income, trim unnecessary expenditures and sow the seeds of future financial development. By applying the credit cards toward deductible expenses, one prunes the tree for better growth the following year. Donating unused items is like pulling vegetation; It takes away unnecessary things and adds to the charitable soil. Strategic cash flow management through IRA adjustments, deferring property tax prepayments and manipulating withholdings is like sowing winter crops; They require some anticipation of seasonal changes, but provide for a good harvest of savings and financial security in retirement.

Added Fact:

In addition to the strategies above, L3Harris employees can take advantage of a qualified Charitable distribution (QCD) option in their IRA - For those age 70 1/2 or older - that allows direct transfers of up to USD 100,000 per year to a qualified charity without the Distribution being taxable income. That move meets the year's Required Minimum Distribution (RMD) and may lower the retiree's income tax bracket, but also supports charitable causes without affecting the taxpayer's adjusted gross income. This strategy, which can be useful to retirees looking for tax-efficient ways to give to charity, was highlighted in IRS guidelines for 2021, highlighting its value in retirement and tax planning.

Added Analogy:

An experienced captain navigating year-end tax planning for L3Harris employees is like navigating the maze of retirement. So just as a captain uses charts, compasses and the stars to navigate, employees must use strategic tax moves to steer their financial ship toward retirement success. Use credit card strategies for deductible expenses like sailing with a good wind that blows the ship forward. Donating unused items suggests shedding unnecessary pounds for speed and agility.

It's like tuning the course of a vessel by changing withholdings and managing property taxes. Borrowing from an IRA for liquidity is like having a reserve tank of fuel for those moments of need. As a captain might use such tools alongside more conventional navigation methods, so too can using such tax strategies alongside more traditional financial planning deliver a smooth ride toward financial security and a comfortable retirement. With each move comes a little adjustment to the sails so retirees and those approaching retirement can move into the next chapter confidently and safely.

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Sources:

1. J.P. Morgan Private Bank. '5 Tax Planning Actions to Take Before Year-End.'  J.P. Morgan Private Bank , October 2024, pp. 1-3.

2. SmartAsset. 'Retirement Tax Strategies to Consider.'  SmartAsset , December 2024, pp. 2-4.

3. Ed Slott and Company, LLC. 'Using Your IRA for a Short-Term Loan.'  Ed Slott and Company , May 2024, pp. 1-2.

4. Fortune. 'Tax Tips for HENRYs: 5 End-of-Year Moves if You Are High Earner Not Yet Rich.'  Fortune , November 2024, pp. 1-2.

5. Yahoo Finance. '4 Ways to Save on Taxes in Retirement.'  Yahoo Finance , February 2025, pp. 1-3.