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

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

Healthcare Provider Update: Tetra Tech's Healthcare Provider Insight Tetra Tech currently partners with various health insurance providers to deliver healthcare benefits to its employees, including prominent insurers in the marketplace. As employees prepare for upcoming benefits changes, it is critical to understand the intricacies of their coverage and options. In 2026, Tetra Tech employees are likely to experience significant increases in healthcare costs, driven by broader industry trends. With anticipated premium hikes in the Affordable Care Act (ACA) marketplace reaching over 60% in some states, many employees could see their out-of-pocket expenses soar. Factors contributing to this include the potential expiration of enhanced federal subsidies and broader medical cost inflation, which are expected to add substantial financial pressure on individuals. Consequently, Tetra Tech employees should proactively review their healthcare options and budget for potentially higher expenditures in the coming year, ensuring they are equipped to handle these economic challenges. Click here to learn more

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

2. Accelerate deductions
Tetra Tech 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 Tetra Tech 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 Tetra Tech 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 Tetra Tech employees to request a Form W-4 change and for their employers from Tetra Tech 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 Tetra Tech 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 Tetra Tech-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, Tetra Tech 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 Tetra Tech-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 Tetra Tech employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Tetra Tech-sponsored retirement plans (special rules apply if you're still working and participating in Tetra Tech'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
Tetra Tech 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 Tetra Tech 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 is Tetra Tech's 401k plan?

Tetra Tech's 401k plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or after-tax (Roth) basis.

How does Tetra Tech match employee contributions to the 401k plan?

Tetra Tech offers a matching contribution to employee 401k accounts, which helps employees maximize their retirement savings.

When can I enroll in Tetra Tech's 401k plan?

Employees at Tetra Tech can enroll in the 401k plan during the initial onboarding process or during the annual open enrollment period.

What are the contribution limits for Tetra Tech's 401k plan?

Tetra Tech follows IRS guidelines for contribution limits, which may change annually. Employees should check the latest limits to ensure they are maximizing their contributions.

Can I change my contribution amount to Tetra Tech's 401k plan at any time?

Yes, Tetra Tech allows employees to change their contribution amounts at any time, subject to certain restrictions based on the plan's rules.

What investment options are available in Tetra Tech's 401k plan?

Tetra Tech's 401k plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

Is there a vesting schedule for Tetra Tech's 401k matching contributions?

Yes, Tetra Tech has a vesting schedule for matching contributions, meaning employees must work for a certain period before they fully own the matched funds.

How can I access my Tetra Tech 401k account?

Employees can access their Tetra Tech 401k account online through the plan's designated website or by contacting the plan administrator for assistance.

What happens to my Tetra Tech 401k if I leave the company?

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

Does Tetra Tech offer financial education resources for employees regarding the 401k plan?

Yes, Tetra Tech provides financial education resources, including workshops and access to financial advisors, to help employees make informed decisions about their 401k savings.