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

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

Healthcare Provider Update: Healthcare Provider for TPG: TPG is supported by diverse healthcare providers, with many of its employees likely utilizing marketplace plans through the Affordable Care Act (ACA). Specific partnerships or collaborations with insurance carriers may not be publicly detailed, but large employers like TPG typically offer a range of options including major national insurers. Healthcare Cost Increases in 2026: As 2026 approaches, TPG employees should prepare for notable healthcare cost increases, driven primarily by projected ACA premium hikes. With many states facing substantial increases-some as high as 66%-the loss of enhanced federal premium subsidies is expected to further inflate out-of-pocket expenses for millions. A combination of intensified medical inflation and aggressive rate adjustments from leading insurers suggests that TPG employees may bear a heightened financial burden for their healthcare coverage. In this shifting landscape, strategic financial planning and early review of available benefits will be crucial for navigating these changes effectively. Click here to learn more

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

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

The primary purpose of TPG's 401(k) plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.

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

TPG employees can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does TPG offer any matching contributions to the 401(k) plan?

Yes, TPG offers a matching contribution to the 401(k) plan, which helps employees enhance their retirement savings.

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

TPG's vesting schedule for matching contributions typically follows a graded vesting schedule, which means employees earn ownership of the contributions over a period of time.

Can TPG employees change their contribution amount to the 401(k) plan?

Yes, TPG employees can change their contribution amount at any time, subject to the plan's guidelines.

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

TPG's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Is there a loan option available through TPG's 401(k) plan?

Yes, TPG allows employees to take loans against their 401(k) balance, subject to certain terms and conditions.

What happens to TPG employees' 401(k) accounts if they leave the company?

If TPG employees leave the company, they can choose to roll over their 401(k) balance to another retirement account, withdraw the funds, or leave the balance in the TPG plan if eligible.

How often can TPG employees make changes to their investment allocations in the 401(k) plan?

TPG employees can typically make changes to their investment allocations on a quarterly basis or as specified in the plan document.

Are there any fees associated with TPG's 401(k) plan?

Yes, TPG's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.