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

Essential Year-End Tax Strategies for Advanced Micro Devices Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Advanced Micro Devices: Advanced Micro Devices (AMD) utilizes a variety of healthcare providers, primarily partnering with major insurers for its employee health benefits. While specific arrangements may vary, AMD's health plans typically include coverage options from networks including UnitedHealthcare, Anthem, and others. Potential Healthcare Cost Increases in 2026: As we approach 2026, employees of Advanced Micro Devices should brace for significant increases in healthcare costs. With projected record hikes in ACA marketplace premiums-some states seeing increases over 60%-employees may find a larger portion of their healthcare expenses shifted to them. Factors like the expiration of enhanced federal subsidies and continual medical cost inflation are driving these changes, potentially leading to out-of-pocket costs soaring by as much as 75%. In this challenging landscape, it's essential for employees to review benefit changes and make informed selections to mitigate the financial impact. Click here to learn more

Here are some things for Advanced Micro Devices employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
Advanced Micro Devices employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a Advanced Micro Devices employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
Advanced Micro Devices employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a Advanced Micro Devices employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a Advanced Micro Devices employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Advanced Micro Devices employees to request a Form W-4 change and for their employers from Advanced Micro Devices to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by Advanced Micro Devices employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a Advanced Micro Devices-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, Advanced Micro Devices employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a Advanced Micro Devices-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

6. Take the required minimum distributions
If you are a Advanced Micro Devices employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Advanced Micro Devices-sponsored retirement plans (special rules apply if you're still working and participating in Advanced Micro Devices's retirement plan). You have to make the withdrawals by the date required — the end of the year for most individuals. The penalty for failing to do so is substantial: 50% of the amount that wasn't distributed on time. As a fortune 500 employee, making these distributions in a timely manner is essential as to avoid the late penalty.

7. Weigh year-end investment moves
Advanced Micro Devices employees and retirees shouldn't let tax considerations drive investment decisions. However, it's worth considering the tax implications of any year-end investment moves that you make. For example, if you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some or all of those gains by selling losing positions. As a Advanced Micro Devices employee, any losses over and above the number of your gains can be used to offset up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your taxes in future years.

Tags: Financial Planning , Tax , Retirement , 2022

What is the 401k plan offered by Advanced Micro Devices?

The 401k plan offered by Advanced Micro Devices is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

How can employees of Advanced Micro Devices enroll in the 401k plan?

Employees of Advanced Micro Devices can enroll in the 401k plan through the company’s HR portal or by contacting the HR department for assistance.

Does Advanced Micro Devices match employee contributions to the 401k plan?

Yes, Advanced Micro Devices offers a matching contribution to the 401k plan, which helps employees grow their retirement savings.

What is the maximum contribution limit for the 401k plan at Advanced Micro Devices?

The maximum contribution limit for the 401k plan at Advanced Micro Devices is in accordance with IRS guidelines, which may change annually.

Can employees of Advanced Micro Devices take loans against their 401k savings?

Yes, employees of Advanced Micro Devices may have the option to take loans against their 401k savings, subject to the plan's specific terms and conditions.

What investment options are available in the Advanced Micro Devices 401k plan?

The Advanced Micro Devices 401k plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to tailor their portfolios.

How often can employees change their contribution amounts to the Advanced Micro Devices 401k plan?

Employees can typically change their contribution amounts to the Advanced Micro Devices 401k plan at any time, subject to the plan’s rules.

What happens to the 401k savings if an employee leaves Advanced Micro Devices?

If an employee leaves Advanced Micro Devices, they can roll over their 401k savings to another retirement account, cash out, or leave the funds in the current plan if permitted.

Are there any fees associated with the Advanced Micro Devices 401k plan?

Yes, the Advanced Micro Devices 401k plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

How can employees access their 401k account information at Advanced Micro Devices?

Employees can access their 401k account information through the online portal provided by the plan administrator or by contacting customer service.

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

AMD has announced a restructuring plan that includes layoffs across various departments to streamline operations and reduce costs. Additionally, the company is making adjustments to its employee benefits, including changes to its pension plan and 401(k) contributions.

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For more information you can reach the plan administrator for Advanced Micro Devices at 2485 Augustine Drive Santa Clara, CA 95054; or by calling them at (408) 749-4000.