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

Essential Year-End Tax Strategies for Align Technology Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Align Technology: Align Technology, the company known for its innovative dental products and services, primarily collaborates with various healthcare providers, including dental professionals and orthodontists, who utilize its Clear Aligner technology and the 3D imaging systems. Potential Healthcare Cost Increases in 2026: As healthcare costs across the United States are projected to climb significantly in 2026, employees at Align Technology should prepare for these changes. The expiration of enhanced premium subsidies under the Affordable Care Act, combined with rising medical costs and aggressive rate hikes from major insurers, could lead to premium increases exceeding 60% in some states. It's crucial for those covered under these plans to reassess their healthcare budgets and consider strategies to mitigate the impact of potentially steep out-of-pocket expenses as they navigate the evolving landscape of healthcare finance. Click here to learn more

Here are some things for Align Technology 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
Align Technology 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 Align Technology employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
Align Technology 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 Align Technology 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.)

Featured Video

Articles you may find interesting:

4. Bump up withholding to cover a tax shortfall
As a Align Technology 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 Align Technology employees to request a Form W-4 change and for their employers from Align Technology 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 Align Technology 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 Align Technology-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, Align Technology 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 Align Technology-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 Align Technology employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Align Technology-sponsored retirement plans (special rules apply if you're still working and participating in Align Technology'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
Align Technology 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 Align Technology 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 401(k) plan offered by Align Technology?

Align Technology offers a 401(k) plan that allows employees to save for retirement through pre-tax and Roth contributions.

How can employees enroll in Align Technology's 401(k) plan?

Employees can enroll in Align Technology's 401(k) plan through the company’s benefits portal during the enrollment period or after they become eligible.

What is the employer match for Align Technology's 401(k) plan?

Align Technology provides a matching contribution to the 401(k) plan, which is typically a percentage of the employee's contributions, up to a certain limit.

When can employees start contributing to Align Technology's 401(k) plan?

Employees can start contributing to Align Technology's 401(k) plan after they have completed their eligibility period, which is outlined in the employee handbook.

Are there any fees associated with Align Technology's 401(k) plan?

Yes, Align Technology's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

What types of investment options are available in Align Technology's 401(k) plan?

Align Technology’s 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can employees take loans against their 401(k) balance at Align Technology?

Yes, Align Technology allows employees to take loans against their 401(k) balance, subject to the terms and conditions of the plan.

What happens to my 401(k) account if I leave Align Technology?

If you leave Align Technology, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the plan if permitted.

Does Align Technology offer any financial education resources for employees regarding their 401(k)?

Yes, Align Technology provides financial education resources and workshops to help employees understand their 401(k) options and investment strategies.

How often can employees change their contribution rate to Align Technology's 401(k) plan?

Employees can change their contribution rate to Align Technology's 401(k) plan at any time, subject to the plan’s guidelines.

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

News: Align Technology announced a restructuring initiative aimed at streamlining operations and reducing costs in response to recent economic pressures. The company is focusing on enhancing efficiency by integrating new technologies and adjusting its workforce to better align with market demands. Importance: This restructuring is crucial given the current economic uncertainty and investment volatility, which could impact the company's financial stability and investor confidence. Addressing these changes is essential to understand the broader implications for corporate strategies and employee benefits amidst fluctuating economic and tax environments.

Additional Articles

Check Out Articles for Align Technology employees

For more information you can reach the plan administrator for Align Technology at 2820 Orchard Parkway San Jose, CA 95134; or by calling them at (408) 470-1000.