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

Healthcare Provider Update: Offers medical, dental, vision, life, and disability insurance, along with a 401(k) retirement plan and paid time off 1. Employees also have access to FSAs and wellness programs. As ACA premiums are projected to rise sharply in 2026with some states seeing increases over 60%Schnitzer Steel is expected to adjust its benefit structures. This may include higher deductibles, coinsurance, or out-of-pocket maximums, making it essential for employees to review their options and optimize HSA/FSA contributions to offset rising costs Click here to learn more

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

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

Schnitzer Steel Industries offers a 401(k) retirement savings plan to its employees.

How can employees of Schnitzer Steel Industries enroll in the 401(k) plan?

Employees of Schnitzer Steel Industries can enroll in the 401(k) plan by completing the online enrollment process through the company’s benefits portal.

Does Schnitzer Steel Industries match employee contributions to the 401(k) plan?

Yes, Schnitzer Steel Industries offers a matching contribution to the 401(k) plan, which helps employees boost their retirement savings.

What is the maximum employee contribution percentage allowed in the Schnitzer Steel Industries 401(k) plan?

The maximum employee contribution percentage for the Schnitzer Steel Industries 401(k) plan is in line with IRS regulations, which can change annually.

When can employees of Schnitzer Steel Industries start contributing to the 401(k) plan?

Employees of Schnitzer Steel Industries can start contributing to the 401(k) plan after completing their eligibility period as defined in the plan documents.

Are there loan options available for Schnitzer Steel Industries employees through the 401(k) plan?

Yes, Schnitzer Steel Industries allows employees to take loans against their 401(k) savings, subject to certain conditions and limits.

How often can employees of Schnitzer Steel Industries change their contribution amounts to the 401(k) plan?

Employees of Schnitzer Steel Industries can change their contribution amounts to the 401(k) plan during designated enrollment periods or as permitted by the plan.

What investment options are available in the Schnitzer Steel Industries 401(k) plan?

The Schnitzer Steel Industries 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 employer match in the Schnitzer Steel Industries 401(k) plan?

Yes, Schnitzer Steel Industries has a vesting schedule for employer matching contributions, which means employees must work for a certain period to fully own those contributions.

Can Schnitzer Steel Industries employees roll over funds from other retirement accounts into their 401(k) plan?

Yes, Schnitzer Steel Industries employees can roll over funds from other qualified retirement accounts into their Schnitzer Steel Industries 401(k) plan.