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

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

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

United Airlines Holdings offers a 401(k) retirement savings plan to its employees.

How can employees of United Airlines Holdings enroll in the 401(k) plan?

Employees of United Airlines Holdings can enroll in the 401(k) plan through the company's benefits portal during the enrollment period.

Does United Airlines Holdings provide a matching contribution for its 401(k) plan?

Yes, United Airlines Holdings offers a matching contribution to employees who participate in the 401(k) plan, subject to certain conditions.

What is the maximum contribution limit for the 401(k) plan at United Airlines Holdings?

The maximum contribution limit for the 401(k) plan at United Airlines Holdings is in accordance with IRS guidelines, which can change annually.

Can employees of United Airlines Holdings take loans against their 401(k) savings?

Yes, employees of United Airlines Holdings may have the option to take loans against their 401(k) savings, subject to the plan's terms and conditions.

Are there any penalties for early withdrawal from the United Airlines Holdings 401(k) plan?

Yes, early withdrawals from the United Airlines Holdings 401(k) plan may incur penalties and taxes, as per IRS regulations.

How often can employees of United Airlines Holdings change their contribution amounts to the 401(k) plan?

Employees of United Airlines Holdings can typically change their contribution amounts at any time, subject to the plan's rules.

What investment options are available in the United Airlines Holdings 401(k) plan?

The United Airlines Holdings 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds.

Is there a vesting schedule for the employer match in the United Airlines Holdings 401(k) plan?

Yes, there is a vesting schedule for the employer match in the United Airlines Holdings 401(k) plan, which determines when employees fully own the matching contributions.

Can employees of United Airlines Holdings roll over their 401(k) savings from a previous employer?

Yes, employees of United Airlines Holdings can roll over their 401(k) savings from a previous employer into the United Airlines Holdings 401(k) plan.