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

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

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

TriNet Group offers a 401(k) retirement savings plan to its employees.

Does TriNet Group match employee contributions to the 401(k) plan?

Yes, TriNet Group provides a matching contribution to employee 401(k) contributions, subject to specific limits.

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

Employees of TriNet Group are eligible to participate in the 401(k) plan after completing a specified period of service, typically within the first year of employment.

Can TriNet Group employees choose how their 401(k) contributions are invested?

Yes, TriNet Group employees can choose from a variety of investment options for their 401(k) contributions.

What is the maximum contribution limit for TriNet Group’s 401(k) plan?

The maximum contribution limit for TriNet Group’s 401(k) plan is aligned with the IRS annual limits, which may change each year.

Are there any fees associated with TriNet Group’s 401(k) plan?

Yes, there may be administrative fees associated with TriNet Group’s 401(k) plan, which are disclosed in the plan documents.

How often can TriNet Group employees change their 401(k) contribution amounts?

TriNet Group employees can change their 401(k) contribution amounts on a regular basis, typically during designated enrollment periods or at any time as allowed by the plan.

What happens to my 401(k) balance if I leave TriNet Group?

If you leave TriNet Group, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the TriNet Group plan if allowed.

Does TriNet Group offer loans against the 401(k) plan?

Yes, TriNet Group may offer the option for employees to take loans against their 401(k) balance, subject to specific terms and conditions.

How can TriNet Group employees access their 401(k) account information?

TriNet Group employees can access their 401(k) account information through the company’s designated retirement plan website or by contacting the plan administrator.