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

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

Healthcare Provider Update: Healthcare Provider for Markel Corporation Markel Corporation primarily relies on multiple healthcare providers to offer benefits to its employees. As a major insurance company, it collaborates with various health insurers to curate competitive health plans suited for its workforce. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare costs are projected to escalate significantly, particularly for those relying on Affordable Care Act (ACA) marketplace plans. Major insurers are expected to implement steep premium hikes, with some states forecasting increases exceeding 60%. A pivotal factor contributing to these alarming projections is the impending expiration of enhanced federal premium subsidies, which, if not renewed, could result in a staggering 75% increase in out-of-pocket costs for the majority of policyholders. This combined strain of rising medical costs and policy changes presents a challenging landscape for healthcare consumers, making careful planning and proactive management essential for navigating these financial hurdles. Click here to learn more

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

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

Markel offers a 401(k) retirement savings plan to its employees.

Does Markel provide any matching contributions to the 401(k) plan?

Yes, Markel provides matching contributions to the 401(k) plan, helping employees boost their retirement savings.

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

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

What is the eligibility criteria for Markel's 401(k) plan?

Employees at Markel are typically eligible to participate in the 401(k) plan after completing a specified period of employment, usually outlined in the employee handbook.

Can employees at Markel take loans against their 401(k) savings?

Yes, Markel allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

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

Markel's 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

How often can employees at Markel change their 401(k) contribution amounts?

Employees at Markel can change their 401(k) contribution amounts during designated enrollment periods or as permitted by the plan rules.

Does Markel offer financial education resources for employees regarding their 401(k)?

Yes, Markel provides financial education resources and workshops to help employees make informed decisions about their 401(k) savings.

What happens to my 401(k) savings if I leave Markel?

If you leave Markel, you have several options for your 401(k) savings, including rolling it over to a new employer's plan, an IRA, or cashing it out, subject to tax implications.

Is there a vesting schedule for Markel's 401(k) matching contributions?

Yes, Markel has a vesting schedule for its matching contributions, which means employees must work for a certain period before they fully own those contributions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Markel’s Pension Plan Information: Look for information on the name of the pension plan, eligibility requirements (years of service and age qualifications), and the pension formula. Identify the terminology used by Markel in their pension plan documents. Markel’s 401(k) Plan Information: Look for details on the 401(k) plan name, who qualifies, and the relevant terminology used by Markel.

Restructuring and Layoffs: In early 2023, Markel Corporation announced a significant restructuring initiative aimed at streamlining its operations and reducing overhead costs. The company reported that this move would lead to a reduction in workforce by approximately 5%, impacting various departments, including underwriting and claims processing. This decision was driven by the need to adapt to a shifting insurance market and improve operational efficiency. Given the current economic climate and investment challenges, it's crucial for stakeholders to stay informed about such restructuring efforts, as they can affect job security and company performance.

Markel Corporation offers stock options and RSUs to its executives and senior employees. The company’s stock options usually vest over a period of several years, and the RSUs are typically awarded based on performance metrics and tenure.

2022 Benefits Overview: Markel offers a range of health benefits including medical, dental, and vision insurance. They provide various plan options, often with a focus on flexibility and employee choice. For medical coverage, Markel typically offers both PPO and HSA-compatible plans. 2023 Benefits Changes: In 2023, Markel introduced new wellness incentives and expanded telehealth services. They emphasized mental health support and added more resources for employee well-being. 2024 Benefits Update: Markel continued to expand its health benefits, focusing on comprehensive mental health services, enhanced telehealth capabilities, and preventive care programs.