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

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

Healthcare Provider Update: Healthcare Provider for Brunswick: Brunswick Corporation, a well-known manufacturer in the marine and recreational products industry, provides healthcare benefits through its corporate plan in partnership with major insurance providers, including UnitedHealthcare and Blue Cross Blue Shield. Employees typically have access to a variety of coverage options tailored to meet their individual needs. Potential Healthcare Cost Increases in 2026: As Brunswick employees prepare for 2026, they should brace for significant healthcare cost increases resulting from anticipated surges in ACA marketplace premiums. With reports indicating some states may experience hikes exceeding 60%, the landscape of health insurance is shifting dramatically. The potential expiration of enhanced federal premium subsidies is poised to exacerbate the situation, with studies showing that up to 92% of marketplace enrollees could face out-of-pocket premium hikes of over 75%. This combination of factors indicates that Brunswick employees may need to reevaluate their healthcare strategies to manage and mitigate these impending financial impacts effectively. Click here to learn more

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

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

The primary purpose of Brunswick's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to contribute a portion of their salary.

Does Brunswick match employee contributions to the 401(k) Savings Plan?

Yes, Brunswick offers a matching contribution to the 401(k) Savings Plan, which helps employees maximize their retirement savings.

How can employees enroll in Brunswick's 401(k) Savings Plan?

Employees can enroll in Brunswick's 401(k) Savings Plan by completing the enrollment process through the company’s benefits portal or by contacting the HR department for assistance.

What are the eligibility requirements for Brunswick's 401(k) Savings Plan?

Employees are generally eligible to participate in Brunswick's 401(k) Savings Plan after completing a specified period of service, as outlined in the plan documents.

What types of investment options are available in Brunswick's 401(k) Savings Plan?

Brunswick's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees change their contribution percentage to Brunswick's 401(k) Savings Plan?

Yes, employees can change their contribution percentage to Brunswick's 401(k) Savings Plan at any time, subject to the plan's guidelines.

What is the vesting schedule for employer contributions in Brunswick's 401(k) Savings Plan?

The vesting schedule for employer contributions in Brunswick's 401(k) Savings Plan varies based on the length of service, as detailed in the plan documents.

How often can employees access their account statements for Brunswick's 401(k) Savings Plan?

Employees can access their account statements for Brunswick's 401(k) Savings Plan online, typically on a quarterly basis, or they can request them at any time.

Are loans available through Brunswick's 401(k) Savings Plan?

Yes, Brunswick's 401(k) Savings Plan may allow employees to take loans against their vested account balance, subject to certain conditions and limits.

What happens to an employee's 401(k) Savings Plan account if they leave Brunswick?

If an employee leaves Brunswick, they can choose to roll over their 401(k) Savings Plan account to another retirement account, cash out, or leave the funds in the plan, depending on 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.

Brunswick has announced a significant restructuring plan, including a reduction in workforce by 10% to streamline operations and reduce costs. The company is also making changes to its pension plan, shifting from a defined benefit plan to a defined contribution plan.

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For more information you can reach the plan administrator for Brunswick at 26125 North Riverwoods Boulevard Mettawa, IL 60045; or by calling them at +1 847-735-4700.