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

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

Healthcare Provider Update: Healthcare Provider for Rithm Capital Rithm Capital primarily operates as a real estate investment trust (REIT) focused on affordable housing and mortgage finance, rather than directly providing healthcare services. However, it can be involved indirectly in the healthcare sector through investments or partnerships that align with its business model. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, significant increases in healthcare costs are anticipated, largely driven by record-setting premium hikes in the Affordable Care Act (ACA) marketplace. Many states will see premium increases surpassing 60%, with factors such as rising medical costs, the potential expiration of enhanced federal premium subsidies, and aggressive pricing strategies from top insurers contributing to these shifts. Without congressional action on subsidies, it's estimated that over 22 million enrollees could face a staggering average rise of more than 75% in out-of-pocket premiums, a scenario that could drastically affect access to affordable healthcare for millions of Americans. Click here to learn more

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

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

Rithm Capital offers a 401(k) retirement savings plan to its employees.

Does Rithm Capital match employee contributions to the 401(k) plan?

Yes, Rithm Capital provides a matching contribution to employee contributions, subject to certain limits.

What is the maximum employee contribution percentage allowed in Rithm Capital's 401(k) plan?

Employees at Rithm Capital can contribute up to the IRS limit, which is typically a percentage of their salary, currently up to 100% of their eligible compensation, not exceeding the annual limit set by the IRS.

When can employees at Rithm Capital enroll in the 401(k) plan?

Employees at Rithm Capital can enroll in the 401(k) plan during the initial onboarding process or during the annual open enrollment period.

Are there any fees associated with Rithm Capital's 401(k) plan?

Yes, Rithm Capital's 401(k) plan may have administrative fees, investment fees, and other costs, which are disclosed in the plan documents.

Can employees at Rithm Capital take loans against their 401(k) savings?

Yes, Rithm Capital allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

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

Rithm Capital offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Is there a vesting schedule for Rithm Capital's 401(k) matching contributions?

Yes, Rithm Capital has a vesting schedule for matching contributions, which means employees must work for a certain period before they fully own the matched funds.

How can employees at Rithm Capital access their 401(k) account information?

Employees can access their 401(k) account information through the online portal provided by Rithm Capital's 401(k) plan administrator.

What happens to the 401(k) savings if an employee leaves Rithm Capital?

If an employee leaves Rithm Capital, they can either roll over their 401(k) savings into another retirement account, cash out, or leave the funds in the Rithm Capital plan if permitted.