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

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

Healthcare Provider Update: Healthcare Provider for Builders FirstSource The healthcare provider for Builders FirstSource is not explicitly named in the available resources; however, large employers generally partner with major insurance companies such as UnitedHealthcare, Anthem, Cigna, or Aetna to offer health plans to their employees. Potential Healthcare Cost Increases in 2026 In 2026, employees of Builders FirstSource may face significant healthcare cost increases as a result of anticipated hikes in health insurance premiums-some states may see raises of over 60%. Factors contributing to these increases include the potential expiration of enhanced federal premium subsidies under the Affordable Care Act (ACA) and rising medical care costs driven by inflation and specific expensive treatments. As a result, many employees could experience greater out-of-pocket expenses, compelling them to evaluate their healthcare plans and reassess their financial options carefully. Preparedness in understanding and managing these changes will be crucial for maintaining affordability in the coming year. Click here to learn more

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

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

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

How does Builders FirstSource match employee contributions to the 401(k) plan?

Builders FirstSource offers a matching contribution to the 401(k) plan, which typically matches a percentage of the employee's contributions, helping to boost retirement savings.

When can employees of Builders FirstSource enroll in the 401(k) plan?

Employees of Builders FirstSource can enroll in the 401(k) plan during their initial onboarding period or during the annual open enrollment period.

What are the eligibility requirements for the 401(k) plan at Builders FirstSource?

To be eligible for the 401(k) plan at Builders FirstSource, employees generally need to be at least 21 years old and have completed a specified period of service.

Can employees of Builders FirstSource take loans against their 401(k) savings?

Yes, Builders FirstSource allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

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

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

How can employees of Builders FirstSource access their 401(k) account information?

Employees can access their 401(k) account information through the Builders FirstSource benefits portal or by contacting the plan administrator.

What happens to the 401(k) plan if an employee leaves Builders FirstSource?

If an employee leaves Builders FirstSource, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Builders FirstSource plan if eligible.

Does Builders FirstSource offer financial education resources for its 401(k) plan?

Yes, Builders FirstSource provides financial education resources and workshops to help employees make informed decisions about their 401(k) savings.

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

Yes, there may be administrative fees and investment-related fees associated with the Builders FirstSource 401(k) plan, which are disclosed in the plan documents.

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

Builders FirstSource announced a restructuring plan to streamline operations and reduce costs, which includes potential layoffs.

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For more information you can reach the plan administrator for Builders FirstSource at 2001 Bryan Street, Suite 1600 Dallas, TX 75201; or by calling them at +1 214-880-3500.