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

Healthcare Provider Update: Healthcare Provider for Otis Worldwide Otis Worldwide Corporation offers healthcare benefits through a variety of plans tailored to their employees, which typically include options from major health insurance providers such as UnitedHealthcare, Anthem, or Aetna, depending on the location. Potential Healthcare Cost Increases in 2026 In 2026, healthcare consumers, including employees of Otis Worldwide, may face significant premium increases as the expiration of enhanced Affordable Care Act (ACA) subsidies looms. Insurers estimate that premiums could rise by as much as 75% for many individuals reliant on these financial assists, with some states seeing hikes over 60%. Coupled with rising medical costs driven by inflation and increased demand, such changes will likely place a heavy financial burden on consumers, highlighting the urgent need for proactive healthcare cost management strategies in the coming year. Click here to learn more

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

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

The 401(k) plan offered by Otis Worldwide is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

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

Employees can enroll in the Otis Worldwide 401(k) plan by accessing the employee benefits portal or contacting the HR department for assistance.

Does Otis Worldwide offer a company match for the 401(k) contributions?

Yes, Otis Worldwide offers a company match for employee contributions to the 401(k) plan, which helps employees save more for retirement.

What is the maximum contribution limit for the 401(k) plan at Otis Worldwide?

The maximum contribution limit for the 401(k) plan at Otis Worldwide is in accordance with IRS guidelines, which may change annually.

Can employees at Otis Worldwide change their contribution percentage to the 401(k) plan?

Yes, employees at Otis Worldwide can change their contribution percentage to the 401(k) plan at any time during the year.

What investment options are available in the Otis Worldwide 401(k) plan?

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

Is there a vesting schedule for the company match in the Otis Worldwide 401(k) plan?

Yes, Otis Worldwide has a vesting schedule for the company match, which means employees must work for a certain period before they fully own the matched funds.

How can employees access their 401(k) account information at Otis Worldwide?

Employees can access their 401(k) account information through the online benefits portal provided by Otis Worldwide.

What happens to the 401(k) plan if an employee leaves Otis Worldwide?

If an employee leaves Otis Worldwide, they have several options for their 401(k) plan, including rolling it over to another retirement account or cashing it out.

Are loans available against the 401(k) plan at Otis Worldwide?

Yes, Otis Worldwide allows employees to take loans against their 401(k) plan, subject to certain terms and conditions.