2022 High Net Worth Tax Planning For Raytheon Employees

With tax season right around the corner, it's important that our Raytheon clients begin tax planning. There are a number of ways our Raytheon clients can plan and make sure they're prepared financially. For our Raytheon clients who are ready to start the tax-planning process, here's what we suggest:

2022 High Net Worth Tax Planning

Our first suggestion is for these Raytheon clients to consider Loss Harvesting – The maximum deductible net capital loss remains $3,000 per year after offsetting capital gains.
It's also important that our Raytheon clients be wary of Wash Sales – When repurchasing the same stock within 30 days of sale across all of their holding’s losses are limited.
Recognize Capital Gains – we recommend our Raytheon clients look at unrealized gains before the end of 2022 to capture the appreciation in a potentially lower tax year.
Qualified Small Business Stock Exclusion – Currently, if certain parameters are met, capital gains can be excluded from income under §1202.
Raytheon employees should also be aware of the Preferred Long Term Capital Gain Tax Rates of 0%, 15% and 20% – You can pay lower, preferred tax rates at certain income levels.
Net Investment Income Tax (NIIT) Remains – At this time, the 3.8% NIIT is here to stay for taxpayers above the AGI threshold.
Opportunity Zone Investments – While the basis adjustment is no longer available for new investments, Qualified Opportunity Fund investments can still provide current tax deferral of gains and exclusion of future appreciation if holding periods are met.

For Executives, Wage, Or Self-Employed Earners

Defer (Until 2023) or Accept (in 2022) Bonuses - Accelerate or reduce taxable income to maximize tax efficiency.
Maximize Retirement Contributions –

Review your limitations before the end of 2022.
Establish and anticipate how to fund self-employed retirement plans.

Maximize Flexible and Dependent Care Spending Accounts for 2023
Maximize Health Savings Accounts Contributions – For our Raytheon clients who have a qualified high-deductible health plan.
Remember to Catch-up Contributions – For our Raytheon clients who are over 50 (retirement) or 55 (FSA/HSA).
Revisit Withholding Elections Before Year-End – Ensure you are sufficiently withheld at the federal and state tax level including other pre-tax elections for 401(k) plans and parking/transportation expenses.
Monitor Your Self-Employed Income and Plan for Big Ticket Purchases – With 100% bonus depreciation and bigger expense limitations for M&E and capital expenditures, look at your year-end income for 2022 and factor in QBI deductions as you review future income prospects. Bonus depreciation will start to phase out in 2023 with an 80% deduction in 2023 and less in later years.

For Retirees and Retirement Planning

Contribute and Maximize Your Deductible and Nondeductible IRAs – Don’t forget about the $1,000 catch-up for those eligible.
Contribution and Maximize Non-IRA Plans - Don't forget the 2022 catch-up contributions for 401(k), 403(b), and 457 retirements plans allow a taxpayer an additional contribution amount of up to $6,500 (limited to $3,000 for SIMPLE plans) to be made on top of the annual elective salary deferral limit.
Take Your RMD – The mandatory requirements are back in 2022 for those over 72 years of age unless already started.
Consider Qualified Charitable Distributions – With RMDs back and large standard deductions, you can reduce your AGI up to $100K.
Revisit Inherited IRA Distribution Requirements – While the IRS has provided relief that no excise tax/penalty will be assessed in the 2021 or 2022 taxable year if required minimum distributions were not made for IRA’s inherited (from someone other than surviving spouses or minor children) from a decedent who was already receiving RMD’s, annual RMD’s will be required to be taken in 2023 with a full distribution being required by the end of the 10th calendar year following the decedent’s death.