Here are some things for CBRE 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
CBRE 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 CBRE Group employee, doing so may enable you to postpone payment of tax on the income until next year.
2. Accelerate deductions
CBRE 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 CBRE 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 CBRE 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 CBRE Group employees to request a Form W-4 change and for their employers from CBRE 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 CBRE 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 CBRE 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, CBRE 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 CBRE 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 CBRE Group employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and CBRE Group-sponsored retirement plans (special rules apply if you're still working and participating in CBRE 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
CBRE 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 CBRE 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 CBRE Group?
The 401(k) plan at CBRE Group is a retirement savings plan that allows employees to save a portion of their salary before taxes are taken out.
How can employees of CBRE Group enroll in the 401(k) plan?
Employees of CBRE Group can enroll in the 401(k) plan through the company’s benefits portal or by contacting the HR department for assistance.
Does CBRE Group offer a matching contribution for the 401(k) plan?
Yes, CBRE Group offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
What is the vesting schedule for CBRE Group's 401(k) matching contributions?
The vesting schedule for CBRE Group's matching contributions typically follows a standard schedule, which can be reviewed in the employee handbook or benefits portal.
Can employees of CBRE Group take loans against their 401(k) savings?
Yes, CBRE Group allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan documents.
What investment options are available in CBRE Group's 401(k) plan?
CBRE Group offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.
Is there a minimum contribution requirement for the 401(k) plan at CBRE Group?
Yes, CBRE Group may have a minimum contribution requirement for employees wishing to participate in the 401(k) plan, which can be found in the plan documents.
How often can employees change their contribution amounts in CBRE Group's 401(k) plan?
Employees of CBRE Group can typically change their contribution amounts at any time, subject to the plan’s guidelines.
What happens to my 401(k) savings if I leave CBRE Group?
If you leave CBRE Group, you have several options for your 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the CBRE Group plan if allowed.
Are there any fees associated with CBRE Group's 401(k) plan?
Yes, there may be administrative or investment fees associated with CBRE Group's 401(k) plan, which are disclosed in the plan documents.
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