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

Healthcare Provider Update: Healthcare Provider for Avis Budget Group Avis Budget Group employees primarily receive their health insurance through Elevance Health, Inc., which offers various plans designed to meet the needs of the workforce. Anticipated Healthcare Cost Increases in 2026 As we approach 2026, Avis Budget Group employees should prepare for potentially significant healthcare cost increases. With healthcare costs projected to rise sharply-driven by increased medical expenses and the possible expiration of enhanced ACA premium subsidies-workers may face greater out-of-pocket expenses. Reports suggest that over half of large employers plan to shift more healthcare costs onto employees, indicating that those at Avis Budget Group could see changes in benefit structures and increased deductibles. Proactive planning and understanding benefit changes will be crucial for workers seeking to mitigate the financial impact. Click here to learn more

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

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

The 401(k) plan at Avis Budget Group is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can employees at Avis Budget Group enroll in the 401(k) plan?

Employees can enroll in the Avis Budget Group 401(k) plan by accessing the benefits portal or contacting the HR department for guidance.

Does Avis Budget Group offer a company match for the 401(k) contributions?

Yes, Avis Budget Group offers a company match on employee contributions to the 401(k) plan, which helps employees save for retirement more effectively.

What is the maximum contribution limit for the Avis Budget Group 401(k) plan?

The maximum contribution limit for the Avis Budget Group 401(k) plan is determined by the IRS guidelines, which may change annually.

Can employees at Avis Budget Group change their contribution percentage?

Yes, employees can change their contribution percentage to the Avis Budget Group 401(k) plan at any time, subject to the plan’s rules.

Are there any fees associated with the Avis Budget Group 401(k) plan?

Yes, there may be fees associated with the management of the Avis Budget Group 401(k) plan, which are disclosed in the plan documents.

What investment options are available in the Avis Budget Group 401(k) plan?

The Avis Budget Group 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

When can employees at Avis Budget Group begin withdrawing from their 401(k) plan?

Employees can typically begin withdrawing from their Avis Budget Group 401(k) plan at age 59½, but specific conditions may apply.

What happens to the 401(k) plan if an employee leaves Avis Budget Group?

If an employee leaves Avis Budget Group, they can roll over their 401(k) balance to another retirement account or withdraw the funds, subject to taxes and penalties.

Does Avis Budget Group provide financial education regarding the 401(k) plan?

Yes, Avis Budget Group offers resources and financial education to help employees understand their 401(k) options and make informed decisions.

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

Avis Budget Group announced a restructuring plan aimed at reducing operational costs and streamlining its operations. The plan includes potential layoffs as part of the effort to improve efficiency.

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For more information you can reach the plan administrator for Avis Budget Group at 6 Sylvan Way Parsippany, NJ 7054; or by calling them at +1 973-496-4700.