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

Essential Year-End Tax Strategies for Spectrum Brands Holdings Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Spectrum Brands Holdings Spectrum Brands Holdings collaborates with various insurance providers to offer employee health benefits; however, the specific healthcare provider details can vary based on the employee's location and selected health plans. The most comprehensive way to obtain this information is by referring directly to Spectrum Brands' human resources department or employee benefits documentation. Projected Healthcare Cost Increases in 2026 As we approach 2026, employees of Spectrum Brands Holdings may face significant healthcare cost increases, exacerbated by surging premiums in the Affordable Care Act (ACA) marketplace. Anticipated rate hikes may soar over 60% in some states, driven by escalating medical costs and the potential expiration of enhanced federal premium subsidies. A concerning 92% of marketplace enrollees risk facing out-of-pocket premium increases of over 75% without congressional intervention. Given this landscape, it's crucial for employees to proactively assess their health benefits and prepare for heightened financial burdens. Click here to learn more

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

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

Spectrum Brands Holdings offers a 401(k) retirement savings plan to help employees save for their future.

Does Spectrum Brands Holdings provide any matching contributions to the 401(k) plan?

Yes, Spectrum Brands Holdings provides a matching contribution to the 401(k) plan, which helps employees increase their retirement savings.

What is the eligibility requirement to participate in the 401(k) plan at Spectrum Brands Holdings?

Employees of Spectrum Brands Holdings are typically eligible to participate in the 401(k) plan after completing a specified period of service.

Can employees of Spectrum Brands Holdings choose how much to contribute to their 401(k) accounts?

Yes, employees of Spectrum Brands Holdings can choose to contribute a percentage of their salary to their 401(k) accounts, within the limits set by the IRS.

What investment options are available in the Spectrum Brands Holdings 401(k) plan?

The 401(k) plan at Spectrum Brands Holdings offers a variety of investment options, including mutual funds and target-date funds.

Is there a vesting schedule for the matching contributions at Spectrum Brands Holdings?

Yes, Spectrum Brands Holdings has a vesting schedule for matching contributions, which means employees must work for a certain period before they fully own the employer's contributions.

How can employees of Spectrum Brands Holdings access their 401(k) account information?

Employees can access their 401(k) account information through the online portal provided by the plan administrator of Spectrum Brands Holdings.

What happens to the 401(k) plan if an employee leaves Spectrum Brands Holdings?

If an employee leaves Spectrum Brands Holdings, they can choose to roll over their 401(k) balance to another retirement account or leave it in the Spectrum Brands Holdings plan, subject to certain conditions.

Are there any fees associated with the 401(k) plan at Spectrum Brands Holdings?

Yes, there may be fees associated with the 401(k) plan at Spectrum Brands Holdings, which can include administrative fees and investment management fees.

Can employees take loans against their 401(k) balances at Spectrum Brands Holdings?

Yes, employees of Spectrum Brands Holdings may have the option to take loans against their 401(k) balances, subject to the plan's rules.