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

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

Healthcare Provider Update: Healthcare Provider for UGI UGI Corporation primarily partners with Cigna HealthCare for its employee health insurance benefits. Cigna provides a range of health services, including medical, dental, and behavioral health coverage to UGI employees and their dependents. Potential Healthcare Cost Increases in 2026 As we head into 2026, UGI and similar employers could face significant healthcare cost pressures. Reports indicate that the overall healthcare expenses for businesses are expected to spike by around 8.5%, with many companies shifting a greater share of these costs to employees. Specifically, the expiration of enhanced federal premium subsidies under the Affordable Care Act may trigger premium hikes exceeding 60% in some states, leading to potential increases in out-of-pocket expenses for policyholders. This landscape suggests that proactive planning and cost management will be essential for UGI and other companies looking to mitigate the impact of rising healthcare costs on employees. Click here to learn more

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

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

The UGI 401(k) plan is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

How can I enroll in UGI's 401(k) plan?

You can enroll in UGI's 401(k) plan by completing the enrollment form available through the HR portal or by contacting the HR department for assistance.

What is the employer match for UGI's 401(k) plan?

UGI offers a competitive employer match for contributions made to the 401(k) plan, which is typically a percentage of the employee's contributions, up to a certain limit.

When can I start contributing to UGI's 401(k) plan?

Employees at UGI can start contributing to the 401(k) plan after completing their eligibility period, which is outlined in the plan documentation.

What types of investment options are available in UGI's 401(k) plan?

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

Can I change my contribution percentage in UGI's 401(k) plan?

Yes, employees can change their contribution percentage at any time by submitting a request through the HR portal or by contacting HR directly.

What happens to my UGI 401(k) plan if I leave the company?

If you leave UGI, you have several options for your 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it with UGI until you reach retirement age.

Is there a loan option available in UGI's 401(k) plan?

Yes, UGI's 401(k) plan may allow participants to take loans against their account balance under certain conditions. Please refer to the plan documents for specific details.

How often can I change my investment choices in UGI's 401(k) plan?

Employees can typically change their investment choices in UGI's 401(k) plan at any time, subject to the plan's trading policies.

What is the vesting schedule for UGI's 401(k) plan?

The vesting schedule for UGI's 401(k) plan determines how much of the employer match you own after a certain period of employment. Specific details can be found in the plan documentation.