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

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

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

The 401(k) plan at ManTech International is a retirement savings plan that allows employees to save a portion of their salary before taxes are deducted.

Does ManTech International match employee contributions to the 401(k) plan?

Yes, ManTech International offers a matching contribution to employee 401(k) accounts, which helps employees grow their retirement savings.

How can employees enroll in the 401(k) plan at ManTech International?

Employees can enroll in the 401(k) plan at ManTech International by completing the enrollment process through the company’s benefits portal or contacting HR for assistance.

What are the eligibility requirements for participating in ManTech International's 401(k) plan?

Generally, all full-time employees of ManTech International are eligible to participate in the 401(k) plan after completing a specified waiting period.

Can employees of ManTech International change their contribution rate to the 401(k) plan?

Yes, employees at ManTech International can change their contribution rate at any time, subject to the plan's guidelines.

What investment options are available in ManTech International's 401(k) plan?

ManTech International offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

Is there a vesting schedule for the employer match in ManTech International's 401(k) plan?

Yes, ManTech International has a vesting schedule for employer matching contributions, which means employees must work for a certain period to fully own those contributions.

When can employees of ManTech International access their 401(k) funds?

Employees of ManTech International can access their 401(k) funds upon reaching retirement age, or in certain circumstances such as hardship withdrawals or loans.

How does ManTech International communicate changes to the 401(k) plan?

ManTech International communicates changes to the 401(k) plan through employee newsletters, the company intranet, and direct emails to employees.

Are there any fees associated with ManTech International's 401(k) plan?

Yes, like most 401(k) plans, ManTech International's plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.