Healthcare Provider Update: Healthcare Provider for Emerson Electric: Emerson Electric primarily partners with UnitedHealthcare for its employee healthcare needs. This partnership offers a range of health plans that provide comprehensive coverage for its workforce, supporting both individual and family health requirements. Healthcare Cost Increases in 2026: As we approach 2026, healthcare costs for employees at Emerson Electric are poised to rise significantly due to a confluence of factors. With anticipated premium hikes in the Affordable Care Act (ACA) marketplace exceeding 60% in some states, many employees could face sharp increases in their out-of-pocket costs. The expiration of enhanced federal premium subsidies is expected to exacerbate the situation, potentially resulting in over 75% increases for a majority of marketplace enrollees. Consequently, it will be essential for Emerson Electric to strategize on healthcare benefits to mitigate the impact on their employees as they navigate these escalating costs. Click here to learn more
Here are some things for Emerson Electric 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
Emerson Electric 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 Emerson Electric employee, doing so may enable you to postpone payment of tax on the income until next year.
2. Accelerate deductions
Emerson Electric 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 Emerson Electric 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 Emerson Electric 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 Emerson Electric employees to request a Form W-4 change and for their employers from Emerson Electric 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 Emerson Electric 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 Emerson Electric-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, Emerson Electric 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 Emerson Electric-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 Emerson Electric employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Emerson Electric-sponsored retirement plans (special rules apply if you're still working and participating in Emerson Electric'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
Emerson Electric 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 Emerson Electric 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 Emerson Electric?
The 401(k) plan at Emerson Electric 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 Emerson Electric 401(k) plan?
Employees can enroll in the Emerson Electric 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.
Does Emerson Electric offer a company match for the 401(k) contributions?
Yes, Emerson Electric offers a company match on employee contributions to the 401(k) plan, helping employees to maximize their retirement savings.
What are the eligibility requirements for the Emerson Electric 401(k) plan?
Generally, employees at Emerson Electric are eligible to participate in the 401(k) plan after completing a specified period of service, as outlined in the employee handbook.
What investment options are available in the Emerson Electric 401(k) plan?
The Emerson Electric 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and other investment vehicles, allowing employees to choose based on their risk tolerance.
Can I change my contribution percentage to the Emerson Electric 401(k) plan?
Yes, employees can change their contribution percentage to the Emerson Electric 401(k) plan at any time, typically through the HR portal.
When can I start withdrawing from my Emerson Electric 401(k) plan?
Employees can begin withdrawing from their Emerson Electric 401(k) plan without penalties after reaching the age of 59½, subject to the plan's specific rules.
Are there any fees associated with the Emerson Electric 401(k) plan?
Yes, like most 401(k) plans, the Emerson Electric 401(k) plan may have administrative fees and investment-related expenses, which are disclosed in the plan documents.
What happens to my Emerson Electric 401(k) if I leave the company?
If you leave Emerson Electric, you have several options for your 401(k), including leaving it in the plan, rolling it over to a new employer’s plan, or cashing it out (though cashing out may incur taxes and penalties).
Is there a loan option available through the Emerson Electric 401(k) plan?
Yes, the Emerson Electric 401(k) plan may offer a loan option, allowing employees to borrow against their retirement savings under certain conditions.
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