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

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

Healthcare Provider Update: Healthcare Provider for TravelCenters of America TravelCenters of America employees have access to Aetna as their healthcare provider. This partnership typically offers a range of health insurance plans that include medical, dental, and vision coverage, tailored to the needs of their workforce. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, employees of TravelCenters of America should brace for significant healthcare cost increases. Premiums for Affordable Care Act (ACA) marketplace plans are anticipated to surge, with some states experiencing hikes exceeding 60%. This spike is driven by factors such as the potential end of enhanced federal premium subsidies and rising medical costs, including high-priced treatments and hospitalization expenses. Many large employers, including TravelCenters of America, may respond by shifting more costs onto employees, making it crucial for workers to evaluate their healthcare options and manage expenses proactively as these challenges loom. Click here to learn more

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

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

TravelCenters of America offers a 401(k) retirement savings plan to its employees.

How can employees of TravelCenters of America enroll in the 401(k) plan?

Employees can enroll in the TravelCenters of America 401(k) plan by completing the enrollment form provided during orientation or through the company's benefits portal.

Does TravelCenters of America match employee contributions to the 401(k) plan?

Yes, TravelCenters of America offers a matching contribution to employees who participate in the 401(k) plan, subject to specific terms and conditions.

What is the eligibility requirement for TravelCenters of America employees to participate in the 401(k) plan?

Generally, employees of TravelCenters of America are eligible to participate in the 401(k) plan after completing a specified period of service, typically 30 days.

Can employees of TravelCenters of America take loans against their 401(k) savings?

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

What investment options are available in the TravelCenters of America 401(k) plan?

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

How often can employees of TravelCenters of America change their 401(k) contribution amount?

Employees can change their 401(k) contribution amount at any time, subject to the plan's guidelines.

What is the vesting schedule for TravelCenters of America’s 401(k) matching contributions?

The vesting schedule for TravelCenters of America’s 401(k) matching contributions typically follows a graded vesting schedule, which means employees earn ownership of the match over a period of time.

Are there any fees associated with the TravelCenters of America 401(k) plan?

Yes, there may be administrative fees associated with the TravelCenters of America 401(k) plan, which are disclosed in the plan's summary documents.

How can employees of TravelCenters of America access their 401(k) account information?

Employees can access their 401(k) account information through the online benefits portal provided by TravelCenters of America.