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

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

Healthcare Provider Update: Healthcare Provider for Rocket Companies For employees of Rocket Companies, the primary provider of health insurance is the UnitedHealthcare (UHC) network. This collaboration allows Rocket employees access to a comprehensive range of health plan options that align with federal healthcare regulations and enhance overall employee wellness. Potential Healthcare Cost Increases in 2026 Looking ahead to 2026, healthcare costs are poised for significant increases, primarily driven by the anticipated expiration of expanded subsidies for Affordable Care Act (ACA) premiums, along with overarching medical inflation. It is projected that ACA premiums could rise dramatically, with some regions facing hikes of over 60%. As a result, more than 22 million enrollees could see their monthly premiums skyrocket by 75% or more, effectively pricing out many middle-income Americans from affordable coverage options. The combination of these factors creates a challenging landscape for consumers, necessitating proactive financial planning to mitigate the impact of these steep increases. Click here to learn more

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

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

Rocket Companies offers a 401(k) retirement savings plan to its employees.

Does Rocket Companies match employee contributions to the 401(k) plan?

Yes, Rocket Companies provides a matching contribution to employee 401(k) contributions, helping employees save more for retirement.

What is the eligibility requirement to participate in the Rocket Companies 401(k) plan?

Employees of Rocket Companies are eligible to participate in the 401(k) plan after completing a specified period of service, typically within the first year of employment.

Can employees of Rocket Companies choose how to invest their 401(k) contributions?

Yes, employees at Rocket Companies can choose from a variety of investment options within the 401(k) plan to align with their retirement goals.

What is the maximum contribution limit for the Rocket Companies 401(k) plan?

The maximum contribution limit for the Rocket Companies 401(k) plan is in accordance with IRS guidelines, which are updated annually.

Does Rocket Companies allow for catch-up contributions in its 401(k) plan?

Yes, Rocket Companies allows employees aged 50 and older to make catch-up contributions to their 401(k) plans.

How often can employees at Rocket Companies change their 401(k) contribution amounts?

Employees at Rocket Companies can change their 401(k) contribution amounts at designated times throughout the year, typically during open enrollment or as specified by the plan.

What happens to my 401(k) if I leave Rocket Companies?

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

Are there any fees associated with the Rocket Companies 401(k) plan?

Yes, like most 401(k) plans, the Rocket Companies 401(k) plan may have administrative fees and investment-related expenses, which are disclosed in the plan documents.

Can employees take loans against their 401(k) at Rocket Companies?

Yes, Rocket Companies allows employees to take loans against their 401(k) balance, subject to the terms and conditions of the plan.