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

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

Healthcare Provider Update: Healthcare Provider for CDW: CDW Corporation is a provider of technology solutions and services, including those tailored for the healthcare industry. They partner with a variety of healthcare providers and insurance companies to deliver specialized technological support and healthcare IT solutions, such as cloud services, data management, and cybersecurity. Potential Healthcare Cost Increases in 2026: As we approach 2026, healthcare costs are projected to rise significantly, with employers facing an 8.5% increase in expenses. This surge is primarily attributed to the expiration of enhanced Affordable Care Act (ACA) premium subsidies and escalating medical costs due to inflation and higher claim rates. Without federal subsidies, many consumers could see their out-of-pocket premium expenses soar by over 75%, making healthcare less accessible. Employers are expected to respond by shifting more costs onto employees, potentially leading to higher deductibles and reduced coverage as they navigate these financial pressures. Click here to learn more

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

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

CDW offers a 401(k) retirement savings plan to help employees save for their future.

Does CDW provide a company match for contributions to the 401(k) plan?

Yes, CDW provides a company match for employee contributions to the 401(k) plan, which helps enhance retirement savings.

What is the eligibility requirement to participate in CDW's 401(k) plan?

Employees are eligible to participate in CDW's 401(k) plan after completing a specific period of employment, typically outlined in the plan documents.

Can employees at CDW choose how their 401(k) contributions are invested?

Yes, employees at CDW can choose from a variety of investment options for their 401(k) contributions based on their risk tolerance and retirement goals.

What is the maximum contribution limit for the CDW 401(k) plan?

The maximum contribution limit for the CDW 401(k) plan is subject to IRS regulations, which are updated annually.

Does CDW allow employees to take loans against their 401(k) savings?

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

When can employees at CDW start withdrawing from their 401(k) plan?

Employees at CDW can start withdrawing from their 401(k) plan at age 59½, following the plan's rules regarding distributions.

Is there a vesting schedule for the company match in CDW's 401(k) plan?

Yes, CDW has a vesting schedule for the company match, which determines how much of the match employees are entitled to based on their years of service.

How often can employees at CDW change their 401(k) contribution amount?

Employees at CDW can change their 401(k) contribution amount during designated enrollment periods or as specified in the plan guidelines.

Does CDW offer educational resources for employees to learn about their 401(k) options?

Yes, CDW provides educational resources and tools 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.

CDW has announced a strategic restructuring plan to streamline operations and improve profitability. This includes a significant reduction in workforce across various departments.

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For more information you can reach the plan administrator for CDW at 200 N. Milwaukee Ave. Vernon Hills, IL 60061; or by calling them at +1 847-465-6000.