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Huntington Ingalls Industries Blueprint for Tax-Efficient IRA Withdrawals

“Huntington Ingalls Industries employees who work with a legal or tax advisor to create a structured drawdown strategy—aligning withdrawal sequencing with projected income needs and anticipated tax law changes—can help mitigate their lifetime tax burden.”— Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

“By working with a legal or tax advisor to thoughtfully sequence withdrawals from taxable, tax-deferred, and tax-free accounts—and incorporate Roth conversions in low-income years—Huntington Ingalls Industries employees can help mitigate their retirement tax burden.”— Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Tax-efficient drawdown strategies for retirement savings
Managing required minimum distributions to help control taxes
Optimal asset location techniques for after-tax returns

Although taxes can erode a sizable portion of retirement assets, Huntington Ingalls Industries employees can benefit from a systematic strategy known as tax-efficient drawdowns to help preserve more of their savings.

There are distinct tax treatments for different retirement savings vehicles—tax-deferred accounts (such as traditional IRAs and 401ks), tax-free accounts (like Roth IRAs), and taxable brokerage accounts. Taking funds from the wrong bucket at the wrong time may trigger unnecessary taxes, push income into higher brackets, or even increase Medicare Part B and D premiums. Crafting a withdrawal sequence that aligns account types with income needs and anticipated tax liabilities can help to optimize post-career income.

Important Takeaways

- A planned withdrawal order can help extend the longevity of your retirement portfolio.

- Withdrawal timing and tax impact differ across tax-deferred, tax-free, and taxable accounts.

- Capital gains management and required minimum distribution (RMD) planning play a pivotal role in overall tax obligations.

- Personalized strategies—based on income profiles, asset allocations, and health considerations—help align outcomes to individual needs.

What a Withdrawal Sequence Means

A retirement drawdown involves withdrawing money from your investment and retirement accounts—such as taxable brokerage accounts, 401ks, Roth IRAs, and traditional IRAs—to fund living expenses after work ends. Research indicates that a systematic hierarchy of withdrawals from these accounts, based on their tax treatment, can extend retirement savings by three years or more. ¹

Tyson Mavar, a financial advisor with Wealth Enhancement, explains the thinking behind this strategy. When retirees withdraw funds from taxable accounts, taxes apply only to capital gains, which are generally taxed at favorable rates (0%, 15%, or 20%, depending on total income). Withdrawing these funds while still in your earning years could help mitigate your overall tax burden. For their part, funds drawn from tax-deferred accounts (such as 401ks and traditional IRAs), are typically taxed at ordinary income tax rates—so these withdrawals may make more sense during lower earning years. Finally, Roth IRAs allow for tax-free withdrawals. Delaying withdrawals from these tax-favored accounts gives them more time to grow tax-free.

To determine the best withdrawal sequencing for your needs, it's important for Huntington Ingalls Industries employees to consider their individual circumstances. For example, partial Roth IRA distributions after the five-year holding period may be advantageous in early retirement years if your taxable income is particularly low and could help to manage future RMD requirements.

Managing the Necessary Minimum Distributions

Current IRS rules require account owners to begin RMDs from employer-sponsored plans and traditional IRAs by April 1 of the year after they turn 73 if they were born between 1951 and 1959. For those born in 1960 or later, RMDs start at 75. If not managed carefully, these mandatory distributions—treated as ordinary income—can raise annual tax bills for Huntington Ingalls Industries employees.

In the decade leading up to RMD age, Mavar often advises clients to consider Roth conversions. Because Roth IRAs do not mandate RMDs, shifting assets from a traditional IRA to a Roth IRA allows your money to grow tax-free. That said, the conversion itself incurs income tax at current rates. Strategic timing of conversions in low-income years may help control taxable income and may lower total lifetime taxes.

Optimizing Asset Placement

Asset positioning—placing investments in the most tax-advantageous accounts—is key to efficient drawdowns. Interest-generating investments (like bonds, actively managed mutual funds, and real estate investment trusts) often produce income taxed at ordinary rates, making them ideal candidates for Roth or tax-deferred accounts. Conversely, tax-efficient holdings (such as municipal bond funds and broad market index funds) can be held in taxable accounts, where favorable dividend and long-term capital gains rates apply.

Customization and Comprehensive Planning

No single drawdown plan fits every retiree. A thorough strategy considers factors like current and future income needs, Social Security claiming tactics, medical expenses, legacy goals, and potential tax law changes. Incorporating these elements into a cohesive plan can position Huntington Ingalls Industries employees to preserve assets for lifelong income and intergenerational wealth transfer.

At Wealth Enhancement, Tyson Mavar and his team specialize in designing customized withdrawal plans. Leveraging their deep knowledge of tax law, investment management, and retirement income planning, they guide clients through complex choices—such as adjusting withdrawals to mitigate Medicare surcharges and evaluating Roth conversions against market conditions.

In Conclusion

After a career of diligent saving, you deserve a retirement plan that helps you keep more after-tax income. When thoughtfully designed and personalized, tax-efficient drawdowns can help make funds last longer. Working with an experienced advisor to navigate capital gains tax management, RMD rules, account hierarchies, and evolving tax laws can yield real savings and greater financial flexibility.

Learn how to navigate RMD implications, manage taxable income, and preserve lifetime savings through strategies like qualified charitable distributions, Roth conversions, and optimized drawdown sequencing. It’s akin to conducting a symphony: you start with the soft strings of taxable brokerage gains, introduce the warmer woodwinds of tax-deferred accounts, let your Roth “brass” soar tax-free, and weave in timely “Roth conversion” solos before the RMD percussion begins—making sure every instrument complements the ensemble without overpowering it.

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Sources:

1. Financial Analysts Journal. ' Tax-Efficient Withdrawal Strategies ,' by Kirsten A. Cook, William Meyer & William Reichenstein. 28 Dec. 2018.

Other Resources:

1. Sumutka, Alan R., Andrew M. Sumutka, and Lewis W. Coopersmith. “Tax-Efficient Retirement Withdrawal Planning Using a Comprehensive Tax Model.” Journal of Financial Planning , vol. 25, no. 4, Apr. 2012, pp. 41–52.

2. Neufeld, Dorothy. “How Required Minimum Distributions Impact Your Traditional IRA Balance.” Investopedia , 14 Apr. 2025, https://www.investopedia.com/required-minimum-distributions-impact-traditional-ira-balance-11711080 .

3. Vanguard Group. “Asset Location Can Lead to Lower Taxes.” Vanguard , Aug. 2024, https://investor.vanguard.com/investment-stewardship/asset-location .

4. Morningstar Editors. “How to Spend From Your Portfolio Tax-Efficiently in Retirement.” Morningstar , Nov. 2024, https://www.morningstar.com/articles/2024/11/how-to-spend-tax-efficiently .

5. Kitces, Michael. “Navigating Income Harvesting Strategies: Harvesting (0 %) Capital Gains Vs. Partial Roth Conversions.” Kitces.com , 22 July 2020, https://www.kitces.com/blog/navigating-income-harvesting-strategies-harvesting-vs-roth-conversions .

How does the Huntington Ingalls Industries (HII) pension plan integrate with Social Security benefits for maximizing an employee's retirement income, and what specific strategies can HII employees use to understand this integration better?

HII pension plan integration with Social Security: The HII pension plan works alongside Social Security benefits, with no reduction in pension payments due to Social Security benefits at age 65 or later. However, if an employee receives workers' compensation benefits, the pension may be reduced. To better understand this integration, employees should review their Social Security benefits statement and consult with the HIBC (Huntington Ingalls Benefits Center) for detailed guidance(Huntington Ingalls Indu…).

In relation to the Huntington Ingalls Industries (HII) pension plan, what are the eligibility requirements for normal and early retirement, and how do these requirements affect long-term financial planning for HII employees approaching retirement age?

Eligibility for normal and early retirement: Employees are eligible for normal retirement at age 65 or after five years of service, whichever comes first. Early retirement is available from age 55 with at least 10 years of service. Early retirement benefits are reduced to reflect the longer payout period, which can impact financial planning. Employees should consider whether to defer retirement to receive full benefits or take a reduced early retirement benefit(Huntington Ingalls Indu…).

How do changes in employment status, such as promotion or changing between hourly and salaried positions, affect pension benefits for Huntington Ingalls Industries (HII) employees, and what should employees consider when anticipating these changes?

Effect of employment status changes: Changes in employment status, such as a promotion or transitioning between hourly and salaried positions, can affect pension eligibility and accrual. For instance, transferring from an hourly to a salaried role might mean cessation of accrual under one plan and ineligibility to return to the previous plan unless specific conditions are met. Employees should check the plan rules and consult with HIBC before making such changes(Huntington Ingalls Indu…).

For employees of Huntington Ingalls Industries (HII), what steps must be taken to ensure that pension benefits are properly claimed and administered upon retirement, and what role does documentation play in this process?

Claiming pension benefits: Employees should notify the HIBC at least two months before their intended retirement date to begin the process of claiming pension benefits. Proper documentation, including a birth certificate, Social Security information, and marriage certificates (if applicable), is essential. Delays in providing this information can result in delays or even forfeiture of benefits(Huntington Ingalls Indu…).

How do the rules surrounding spousal consent impact retirement benefit elections for employees at Huntington Ingalls Industries (HII), and what specific options are available for employees considering different forms of retirement income?

Spousal consent and retirement elections: HII requires spousal consent for retirement elections other than the standard 50%, 75%, or 100% joint and survivor annuity options. This ensures that spouses are aware of and agree to any reduction in survivor benefits. Employees should discuss these options with their spouse and obtain written, notarized consent when necessary(Huntington Ingalls Indu…).

What are the implications of the pension plan provisions related to disability retirement for Huntington Ingalls Industries (HII) employees, including the eligibility criteria and the impact on social security benefits that employees should be aware of?

Disability retirement provisions: Disability retirement is available to employees with at least 15 years of service who qualify for Social Security disability benefits. Disability retirement benefits are not reduced for early commencement, making it a beneficial option for qualifying employees. It’s crucial for employees to apply to both HII and the Social Security Administration to claim these benefits(Huntington Ingalls Indu…).

In what ways does the pension plan of Huntington Ingalls Industries (HII) accommodate employees who have service credits from other employers or previously merged plans, and what actions should employees take to clarify their benefits?

Service credits from other employers: The HII pension plan may accommodate employees who have service credits from previously merged plans. If an employee has transferred assets from another employer’s plan, they should contact the HIBC to clarify how these credits affect their pension calculation(Huntington Ingalls Indu…).

How do the changes in IRS limits for retirement accounts in 2024 impact the retirement planning for employees of Huntington Ingalls Industries (HII), and what resources does HII provide to assist employees in navigating these changes?

IRS limit changes for 2024: Changes in IRS contribution limits affect retirement planning by capping how much can be saved in tax-advantaged accounts. HII provides access to tools and financial advisors through the HIBC, allowing employees to review how these changes impact their pension and 401(k) contributions(Huntington Ingalls Indu…).

What are the consequences for employees at Huntington Ingalls Industries (HII) if they fail to notify the benefits center of their address changes or retirement intentions, particularly concerning the accrual and distribution of their pension benefits?

Consequences of failing to notify benefits center: If an employee fails to update their address or retirement intentions with the HIBC, it may result in delayed pension payments or the loss of benefits. It is crucial to maintain up-to-date contact information to ensure smooth benefit distribution(Huntington Ingalls Indu…)(Huntington Ingalls Indu…).

If an Huntington Ingalls Industries (HII) employee wants to learn more about their specific pension benefits or has questions regarding the pension plan, what methods can they use to contact HII for assistance, and what information should they have ready during this communication?

Contacting HII for pension information: Employees can contact the HIBC via phone or the online portal (http://hiibenefits.com) to inquire about their pension benefits. They should have personal identification details such as Social Security numbers, marital status, and anticipated retirement dates ready for efficient assistance(Huntington Ingalls Indu…).