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

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

Healthcare Provider Update: Healthcare Provider for ArcBest ArcBest provides health insurance through a partnership with multiple insurance carriers, primarily using the services of UnitedHealthcare (UHC) along with several other insurers depending on the specific plan options available to their employees. Potential Healthcare Cost Increases in 2026 In 2026, ArcBest employees and retirees may face significant healthcare cost increases as marketplace premiums are projected to surge, with some states experiencing hikes of more than 60%. The anticipated expiration of enhanced federal premium subsidies poses a crucial risk, potentially leading to a staggering 75% rise in out-of-pocket premiums for many enrollees. As employers, including ArcBest, reconsider their benefit structures amidst rising medical costs and shrinking wage growth, employees should prepare for possible changes in deductibles and out-of-pocket maximums. This evolving landscape underscores the importance of early planning and informed decision-making in navigating the forthcoming financial challenges related to healthcare coverage. Click here to learn more

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

2. Accelerate deductions
ArcBest 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 ArcBest 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 ArcBest 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 ArcBest employees to request a Form W-4 change and for their employers from ArcBest 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 ArcBest 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 ArcBest-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, ArcBest 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 ArcBest-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 ArcBest employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and ArcBest-sponsored retirement plans (special rules apply if you're still working and participating in ArcBest'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
ArcBest 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 ArcBest 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 ArcBest 401(k) plan?

The ArcBest 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck on a tax-deferred basis to help secure their financial future.

How can employees enroll in the ArcBest 401(k) plan?

Employees can enroll in the ArcBest 401(k) plan through the company’s benefits portal during open enrollment or within 30 days of their hire date.

Does ArcBest match employee contributions to the 401(k) plan?

Yes, ArcBest offers a company match for employee contributions to the 401(k) plan, which helps employees grow their retirement savings.

What is the maximum contribution limit for the ArcBest 401(k) plan?

The maximum contribution limit for the ArcBest 401(k) plan follows the IRS guidelines, which may change annually. Employees should check the latest IRS limits for the current year.

When can employees start contributing to the ArcBest 401(k) plan?

Employees at ArcBest can start contributing to the 401(k) plan after they have completed their eligibility period, typically within their first month of employment.

What investment options are available in the ArcBest 401(k) plan?

The ArcBest 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees take loans against their ArcBest 401(k) plan?

Yes, employees may have the option to take loans against their ArcBest 401(k) plan, subject to specific terms and conditions outlined in the plan document.

What happens to my ArcBest 401(k) if I leave the company?

If you leave ArcBest, you can choose to roll over your 401(k) balance to another retirement account, leave it in the ArcBest plan (if eligible), or cash it out, though cashing out may incur taxes and penalties.

How does ArcBest ensure the security of my 401(k) savings?

ArcBest takes the security of your 401(k) savings seriously by partnering with reputable financial institutions and implementing strong data protection measures.

Are there any fees associated with the ArcBest 401(k) plan?

Yes, there may be administrative fees associated with the ArcBest 401(k) plan, which are disclosed in the plan documents provided to employees.

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

ArcBest announced a strategic restructuring plan aimed at streamlining operations and improving efficiency. This plan includes workforce reductions across various departments. The company also plans to make adjustments to its employee benefits package to align with the new operational model.