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

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

Healthcare Provider Update: Healthcare Provider for Boston Properties Boston Properties, a prominent real estate investment trust, typically offers its employees a range of health insurance options through various providers. Among the main insurers likely to serve its workforce are UnitedHealthcare, Anthem, and Aetna, which already operate substantial networks in the regions where Boston Properties is active. Potential Healthcare Cost Increases in 2026 In 2026, Boston Properties employees can expect significant increases in healthcare costs, primarily driven by anticipated hikes in Affordable Care Act (ACA) marketplace premiums. With some states reporting increases of over 60%, the loss of enhanced federal premium subsidies is expected to adversely affect the majority of marketplace enrollees. This may result in out-of-pocket premium costs rising by as much as 75% for many individuals. Employees of Boston Properties should proactively assess their health insurance options and prepare for these potentially steep costs as they plan for their upcoming healthcare needs. Click here to learn more

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

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

Boston Properties offers a 401(k) retirement savings plan to its employees.

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

Yes, Boston Properties provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

What is the eligibility requirement for Boston Properties employees to participate in the 401(k) plan?

Employees of Boston Properties are generally eligible to participate in the 401(k) plan after completing a specified period of service.

Can Boston Properties employees choose how their 401(k) contributions are invested?

Yes, employees at Boston Properties can choose from a variety of investment options for their 401(k) contributions.

Is there a vesting schedule for the employer match in the Boston Properties 401(k) plan?

Yes, Boston Properties has a vesting schedule for employer matching contributions, which outlines how long employees must work to fully own those contributions.

What are the contribution limits for the Boston Properties 401(k) plan?

The contribution limits for the Boston Properties 401(k) plan align with the IRS limits, which may change annually.

Can Boston Properties employees take loans against their 401(k) savings?

Yes, Boston Properties allows employees to take loans against their 401(k) savings, subject to the plan’s terms and conditions.

How can Boston Properties employees access their 401(k) account information?

Employees can access their 401(k) account information through the designated online portal provided by Boston Properties’ plan administrator.

Does Boston Properties offer a Roth 401(k) option?

Yes, Boston Properties offers a Roth 401(k) option, allowing employees to make after-tax contributions.

What happens to a Boston Properties employee's 401(k) account if they leave the company?

If a Boston Properties employee leaves the company, they can choose to roll over their 401(k) account to another retirement account or leave it with Boston Properties, subject to the plan's rules.

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

Layoffs and Restructuring: Boston Properties announced a significant restructuring plan, resulting in the layoff of approximately 10% of its workforce. The company is focusing on reducing operational costs and improving efficiency in response to current market conditions.

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For more information you can reach the plan administrator for Boston Properties at 800 Boylston St Boston, MA 2199; or by calling them at +1 617-236-3300.