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

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

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

Texas Roadhouse offers a 401(k) retirement savings plan to its employees.

How can Texas Roadhouse employees enroll in the 401(k) plan?

Texas Roadhouse employees can enroll in the 401(k) plan by completing the enrollment process through the company's HR portal or by contacting HR for assistance.

Does Texas Roadhouse match employee contributions to the 401(k) plan?

Yes, Texas Roadhouse provides a matching contribution to employee 401(k) contributions, subject to certain limits.

What is the eligibility requirement for Texas Roadhouse employees to participate in the 401(k) plan?

Texas Roadhouse employees are generally eligible to participate in the 401(k) plan after completing a specified period of service, typically 60 days.

What types of investment options are available in the Texas Roadhouse 401(k) plan?

The Texas Roadhouse 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can Texas Roadhouse employees take loans against their 401(k) savings?

Yes, Texas Roadhouse employees may be able to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What is the vesting schedule for Texas Roadhouse's 401(k) matching contributions?

The vesting schedule for Texas Roadhouse's 401(k) matching contributions typically follows a graded vesting schedule, which means employees earn rights to the match over time.

How can Texas Roadhouse employees change their contribution percentage to the 401(k) plan?

Texas Roadhouse employees can change their contribution percentage by accessing their account online or by submitting a request through HR.

Are there any fees associated with the Texas Roadhouse 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with the Texas Roadhouse 401(k) plan, which are disclosed in the plan documents.

Can Texas Roadhouse employees roll over their 401(k) savings from a previous employer?

Yes, Texas Roadhouse employees can roll over their 401(k) savings from a previous employer into the Texas Roadhouse 401(k) plan, following the plan's rollover procedures.