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

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

Healthcare Provider Update: Healthcare Provider for Signature Bank Employees of Signature Bank typically have access to various healthcare providers depending on the health insurance options offered through their employment. Signature Bank's health plan networks may include major national insurers, such as UnitedHealthcare, Cigna, and Anthem, alongside local providers, ensuring a range of healthcare options for their employees. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs for employees at Signature Bank are expected to rise significantly due to projected record increases in ACA marketplace premiums. Some states are facing hikes exceeding 60%, particularly as enhanced federal premium subsidies are set to expire. This could lead to out-of-pocket premium costs increasing by an average of over 75% for many enrollees. Contributing factors include escalating medical expenses, aggressive rate increases from insurers, and continued inflationary pressures in healthcare provision, which pose serious financial implications for members relying on ACA coverage. Click here to learn more

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

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

Signature Bank offers a 401(k) retirement savings plan to its employees.

How can employees of Signature Bank enroll in the 401(k) plan?

Employees of Signature Bank can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does Signature Bank provide matching contributions to the 401(k) plan?

Yes, Signature Bank offers matching contributions to the 401(k) plan, subject to certain conditions.

What is the vesting schedule for Signature Bank's 401(k) matching contributions?

The vesting schedule for Signature Bank's 401(k) matching contributions typically follows a graded vesting schedule, which employees can review in the plan documents.

Can employees of Signature Bank take loans against their 401(k) savings?

Yes, Signature Bank allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

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

Signature Bank's 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and other investment vehicles.

Is there a minimum contribution requirement for employees participating in Signature Bank's 401(k) plan?

Yes, Signature Bank may have a minimum contribution requirement for employees participating in the 401(k) plan, which can be confirmed through the plan documents.

How often can employees of Signature Bank change their 401(k) contribution amounts?

Employees of Signature Bank can typically change their 401(k) contribution amounts during open enrollment periods or as specified in the plan guidelines.

What happens to my 401(k) savings if I leave Signature Bank?

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

Does Signature Bank offer financial education resources for employees regarding their 401(k) plan?

Yes, Signature Bank provides financial education resources and workshops to help employees understand their 401(k) plan and make informed investment decisions.