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

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

Healthcare Provider Update: Healthcare Provider Information for Macy's: Macy's, as a large retailer, typically provides employee health insurance through various national carriers. Among the prominent providers, UnitedHealthcare has been the primary healthcare partner for Macy's, offering a range of health plans that include medical, dental, and vision coverage for employees. Healthcare Cost Increases in 2026: As Macy's faces healthcare cost pressures in 2026, significant increases in insurance premiums are anticipated due to the expiration of enhanced federal subsidies under the Affordable Care Act (ACA). Some states could see hikes exceeding 60%, with as many as 22 million marketplace enrollees potentially experiencing more than a 75% rise in out-of-pocket costs. Contributing factors include rising medical costs driven by inflation, labor shortages, and high pharmaceutical prices, further straining budgets for employers like Macy's. This perfect storm of escalating costs and diminished subsidies places additional financial pressure on both the company and its employees, necessitating strategic planning moving forward. Click here to learn more

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

2. Accelerate deductions
Macy's 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 Macy's 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.)

Featured Video

Articles you may find interesting:

4. Bump up withholding to cover a tax shortfall
As a Macy's 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 Macy's employees to request a Form W-4 change and for their employers from Macy's 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 Macy's 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 Macy's-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, Macy's 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 Macy's-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 Macy's employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Macy's-sponsored retirement plans (special rules apply if you're still working and participating in Macy's'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
Macy's 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 Macy's 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 Macy's 401(k) plan?

The Macy's 401(k) plan is a retirement savings plan that allows eligible employees to save for their future by contributing a portion of their paycheck on a pre-tax or after-tax basis.

How does Macy's match contributions to the 401(k) plan?

Macy's offers a matching contribution to the 401(k) plan, which means that for every dollar you contribute, Macy's will match a certain percentage, up to a specified limit.

Who is eligible to participate in Macy's 401(k) plan?

Generally, all full-time and part-time employees of Macy's who meet specific age and service requirements are eligible to participate in the 401(k) plan.

Can I change my contribution amount to the Macy's 401(k) plan?

Yes, employees can change their contribution amounts to the Macy's 401(k) plan at any time, subject to plan rules.

What investment options are available in the Macy's 401(k) plan?

The Macy's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their retirement savings.

How do I enroll in the Macy's 401(k) plan?

Employees can enroll in the Macy's 401(k) plan through the company's benefits portal or by contacting the HR department for assistance.

Is there a vesting schedule for Macy's matching contributions?

Yes, Macy's has a vesting schedule for matching contributions, which means that employees must work for a certain period before they fully own the matched funds.

Can I take a loan from my Macy's 401(k) plan?

Yes, employees may have the option to take a loan from their Macy's 401(k) plan, subject to specific terms and conditions outlined in the plan.

What happens to my Macy's 401(k) if I leave the company?

If you leave Macy's, you can choose to roll over your 401(k) balance into another retirement account, cash it out (subject to taxes and penalties), or leave it in the Macy's plan if allowed.

How can I check my Macy's 401(k) balance?

Employees can check their Macy's 401(k) balance by logging into the benefits portal or by contacting the plan administrator.