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

Essential Year-End Tax Strategies for O'Reilly Automotive Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for O'Reilly Automotive O'Reilly Automotive, primarily reliant on its internal health benefits system, partners with various healthcare providers and insurers to offer health plans to its employees. While specific provider names can vary by location and plan type, O'Reilly typically collaborates with major insurance firms that participate in the Affordable Care Act (ACA) marketplace. Potential Healthcare Cost Increases for O'Reilly Automotive in 2026 As the healthcare landscape shifts, O'Reilly Automotive employees and retirees should prepare for potentially significant increases in their healthcare costs in 2026. Factors such as the expected expiration of enhanced federal ACA premium subsidies may lead to out-of-pocket premiums surging by over 75% for many policyholders. Coupled with aggressive rate hikes from insurers-some states reporting increases of 60% or more-employees may encounter substantial financial strain when seeking medical coverage. This perfect storm of escalating premiums and reduced federal support underlines the importance of proactive budgeting and planning for healthcare expenses in the coming year. Click here to learn more

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

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

The O'Reilly Automotive 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

Does O'Reilly Automotive offer a company match for the 401(k) contributions?

Yes, O'Reilly Automotive offers a company match for employee contributions to the 401(k) plan, helping employees to grow their retirement savings.

How can employees at O'Reilly Automotive enroll in the 401(k) plan?

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

What is the eligibility requirement for O'Reilly Automotive's 401(k) plan?

Employees must be at least 21 years old and have completed a specified period of service to be eligible for O'Reilly Automotive's 401(k) plan.

Can employees at O'Reilly Automotive take loans against their 401(k) savings?

Yes, O'Reilly Automotive allows employees to take loans against their 401(k) savings, subject to certain conditions and limits.

What investment options are available in the O'Reilly Automotive 401(k) plan?

The O'Reilly Automotive 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

How often can employees change their contribution amounts for the O'Reilly Automotive 401(k) plan?

Employees at O'Reilly Automotive can change their contribution amounts at any time, subject to the plan's guidelines.

Is there a vesting schedule for the company match in O'Reilly Automotive's 401(k) plan?

Yes, O'Reilly Automotive has a vesting schedule for the company match, which determines how much of the match employees will retain if they leave the company.

What happens to the 401(k) savings if an employee leaves O'Reilly Automotive?

If an employee leaves O'Reilly Automotive, they can roll over their 401(k) savings into another retirement account, cash out, or leave the funds in the O'Reilly Automotive plan if allowed.

Can employees at O'Reilly Automotive contribute to their 401(k) on a pre-tax and Roth basis?

Yes, O'Reilly Automotive allows employees to choose between pre-tax contributions and Roth contributions for their 401(k) savings.