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

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

Healthcare Provider Update: Healthcare Provider for Ovintiv Ovintiv utilizes several healthcare providers for its employees' health coverage, with a primary focus on large national insurers. Notable among these are UnitedHealthcare and Anthem, which are typically selected to offer comprehensive healthcare plans that cover a wide array of services including preventive care, emergency services, and specialty medications. Healthcare Cost Increases in 2026 In 2026, Ovintiv employees may face substantial increases in healthcare costs, primarily due to anticipated hikes in Affordable Care Act (ACA) market premiums, which are expected to rise by as much as 66% in some states. The projected expiration of enhanced federal premium subsidies, coupled with a medical cost inflation rate that surpasses general inflation, is likely to significantly increase out-of-pocket expenses. As a result, employees should proactively review their health benefits and consider strategic adjustments to mitigate the impact of these rising costs. Click here to learn more

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

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

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

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

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

Does Ovintiv provide a company match for the 401(k) contributions?

Yes, Ovintiv provides a company match for employee contributions to the 401(k) plan, subject to specific terms and conditions.

What is the maximum contribution limit for Ovintiv employees participating in the 401(k) plan?

The maximum contribution limit for Ovintiv employees is in line with IRS guidelines, which may change annually. Employees should check the latest IRS limits for accuracy.

Can Ovintiv employees change their contribution percentage at any time?

Yes, Ovintiv employees can change their contribution percentage at any time, typically through the HR portal or by contacting HR.

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

Ovintiv’s 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

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

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

How can Ovintiv employees access their 401(k) account information?

Ovintiv employees can access their 401(k) account information online through the plan’s designated website or by contacting the plan administrator.

Does Ovintiv allow for loans against the 401(k) account?

Yes, Ovintiv may allow employees to take loans against their 401(k) account, subject to the plan’s specific terms and conditions.

What happens to an Ovintiv employee's 401(k) account if they leave the company?

If an Ovintiv employee leaves the company, they have several options for their 401(k) account, including rolling it over to another retirement account or leaving it with Ovintiv.