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

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

Healthcare Provider Update: Nu Skin Enterprises offers healthcare benefits to its employees through various providers, primarily collaborating with large national insurers. For 2026, Nu Skin Enterprises employees should prepare for potential healthcare costs to rise significantly. Record premium increases are anticipated, particularly within the Affordable Care Act marketplace; some states may see hikes exceeding 60%. Contributing factors include escalating medical costs, the potential expiration of enhanced federal premium subsidies, and aggressive rate increases from major insurers. As many companies consider shifting a greater share of healthcare expenses onto employees, Nu Skin's workers might face larger out-of-pocket costs, making it crucial for them to stay informed about benefit adjustments and optimize their healthcare plan selections. Click here to learn more

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

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

Nu Skin Enterprises offers a 401(k) retirement savings plan to help employees save for their future.

Is participation in the 401(k) plan at Nu Skin Enterprises mandatory?

No, participation in the 401(k) plan at Nu Skin Enterprises is voluntary, allowing employees to choose whether or not to enroll.

What is the employer match policy for the 401(k) plan at Nu Skin Enterprises?

Nu Skin Enterprises provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

How can employees at Nu Skin Enterprises enroll in the 401(k) plan?

Employees at Nu Skin Enterprises can enroll in the 401(k) plan through the company’s HR portal during designated enrollment periods.

What are the contribution limits for the 401(k) plan at Nu Skin Enterprises?

The contribution limits for the 401(k) plan at Nu Skin Enterprises are set in accordance with IRS guidelines, which can change annually.

Can employees at Nu Skin Enterprises take loans against their 401(k) savings?

Yes, employees at Nu Skin Enterprises may have the option to take loans against their 401(k) savings, subject to specific plan rules.

What investment options are available in the Nu Skin Enterprises 401(k) plan?

The 401(k) plan at Nu Skin Enterprises offers a variety of investment options, including mutual funds and target-date funds, to suit different risk tolerances.

How often can employees at Nu Skin Enterprises change their 401(k) contribution amounts?

Employees at Nu Skin Enterprises can change their 401(k) contribution amounts at any time, subject to the plan’s guidelines.

What happens to the 401(k) savings if an employee leaves Nu Skin Enterprises?

If an employee leaves Nu Skin Enterprises, they have several options for their 401(k) savings, including rolling it over to another retirement account or cashing it out.

Does Nu Skin Enterprises provide educational resources for employees regarding their 401(k) plan?

Yes, Nu Skin Enterprises offers educational resources and workshops to help employees understand their 401(k) plan and make informed investment decisions.