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

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

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

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

How can I enroll in the 401(k) plan at Cornerstone Building Brands?

Employees can enroll in the Cornerstone Building Brands 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does Cornerstone Building Brands match employee contributions to the 401(k) plan?

Yes, Cornerstone Building Brands offers a matching contribution to the 401(k) plan, which helps employees boost their retirement savings.

What is the maximum contribution limit for the 401(k) plan at Cornerstone Building Brands?

The maximum contribution limit for the Cornerstone Building Brands 401(k) plan is set according to IRS regulations, which may change annually.

Can I change my contribution percentage for the 401(k) plan at Cornerstone Building Brands?

Yes, employees can change their contribution percentage for the Cornerstone Building Brands 401(k) plan at any time through the HR portal.

What investment options are available in the Cornerstone Building Brands 401(k) plan?

The Cornerstone Building Brands 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, to suit different risk tolerances.

When can I start withdrawing from my 401(k) plan at Cornerstone Building Brands?

Employees can typically start withdrawing from their Cornerstone Building Brands 401(k) plan at age 59½, but there are specific conditions and options available.

Is there a loan option available through the 401(k) plan at Cornerstone Building Brands?

Yes, Cornerstone Building Brands allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.

What happens to my 401(k) plan if I leave Cornerstone Building Brands?

If you leave Cornerstone Building Brands, you have several options for your 401(k) plan, including rolling it over to an IRA, leaving it with the plan, or cashing it out.

How often can I change my investment allocations in the Cornerstone Building Brands 401(k) plan?

Employees can change their investment allocations in the Cornerstone Building Brands 401(k) plan as often as they like, typically through the HR portal.

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For more information you can reach the plan administrator for Cornerstone Building Brands at 5020 Weston Pkwy. Cary, NC 27513; or by calling them at 919-677-3900.