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

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

Healthcare Provider Update: Healthcare Provider for Regal Rexnord: Regal Rexnord Corporation typically engages with a variety of healthcare providers for its employee health benefits. While specific healthcare providers can vary based on employee location and health plan selections, Regal Rexnord often collaborates with networks that include major insurers such as UnitedHealthcare, Anthem, and Cigna to offer comprehensive healthcare coverage for its employees. Healthcare Cost Increases in 2026: As 2026 approaches, Regal Rexnord, like many companies, may face significant increases in healthcare costs, primarily driven by anticipated hikes in ACA marketplace premiums. Reports indicate that some states are bracing for premium increases that could surpass 60%, largely due to factors such as rising medical costs, the expected end of enhanced federal premium subsidies, and aggressive rate adjustments by major insurers. This perfect storm of escalating costs could translate to a staggering increase in out-of-pocket healthcare expenses for consumers, impacting both employees and the overall budget for employers like Regal Rexnord. As a proactive measure, the company should consider strategies to mitigate these financial impacts for its workforce. Click here to learn more

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

2. Accelerate deductions
Regal Rexnord 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 Regal Rexnord 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.)

Featured Video

Articles you may find interesting:

4. Bump up withholding to cover a tax shortfall
As a Regal Rexnord 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 Regal Rexnord employees to request a Form W-4 change and for their employers from Regal Rexnord 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 Regal Rexnord 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 Regal Rexnord-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, Regal Rexnord 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 Regal Rexnord-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 Regal Rexnord employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Regal Rexnord-sponsored retirement plans (special rules apply if you're still working and participating in Regal Rexnord'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
Regal Rexnord 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 Regal Rexnord 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 Regal Rexnord?

The 401(k) plan at Regal Rexnord is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can I enroll in the Regal Rexnord 401(k) plan?

Employees can enroll in the Regal Rexnord 401(k) plan through the company's benefits portal or by contacting the HR department for assistance.

Does Regal Rexnord offer a matching contribution for the 401(k) plan?

Yes, Regal Rexnord offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the vesting schedule for Regal Rexnord's 401(k) matching contributions?

The vesting schedule for Regal Rexnord's 401(k) matching contributions typically follows a graded vesting schedule, which means employees earn ownership of the match over a set period.

Can I change my contribution percentage to the Regal Rexnord 401(k) plan?

Yes, employees can change their contribution percentage to the Regal Rexnord 401(k) plan at any time, subject to the plan's guidelines.

What investment options are available in the Regal Rexnord 401(k) plan?

The Regal Rexnord 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Is there a loan option available through the Regal Rexnord 401(k) plan?

Yes, Regal Rexnord allows employees to take loans against their 401(k) balance, subject to certain terms and conditions.

What happens to my Regal Rexnord 401(k) if I leave the company?

If you leave Regal Rexnord, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the Regal Rexnord plan if eligible.

Are there any fees associated with the Regal Rexnord 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with the Regal Rexnord 401(k) plan, which are disclosed in the plan documents.

How often can I make changes to my investments in the Regal Rexnord 401(k) plan?

Employees can typically make changes to their investment allocations in the Regal Rexnord 401(k) plan on a regular basis, often daily or quarterly, depending on the plan's rules.