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

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

Healthcare Provider Update: Healthcare Provider for United Natural Foods United Natural Foods, Inc. (UNFI) typically partners with major national health insurers for employee healthcare benefits. Although specific partnerships can vary over time and may depend on employee location and plan selection, large insurance providers such as UnitedHealthcare and Anthem Blue Cross Blue Shield are common choices among employers in the food distribution sector. Potential Healthcare Cost Increases in 2026 As we head into 2026, United Natural Foods employees should brace for significant increases in healthcare costs. With the anticipated expiration of enhanced federal subsidies under the Affordable Care Act, many could see out-of-pocket premiums rise dramatically-by as much as 75% for some. Additionally, systemic medical inflation and rising pharmaceutical prices, particularly for specialty drugs, further exacerbate these cost pressures. As employers navigate this challenging landscape, a major shift in healthcare benefits is expected, with many companies likely to pass a greater share of expenses onto employees in an effort to mitigate rising healthcare expenditures. Click here to learn more

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

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

The 401(k) plan at United Natural Foods is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can I enroll in the United Natural Foods 401(k) plan?

You can enroll in the United Natural Foods 401(k) plan by accessing the employee portal and completing the enrollment process during the designated enrollment period.

Does United Natural Foods offer a company match for the 401(k) contributions?

Yes, United Natural Foods offers a company match on employee contributions to the 401(k) plan, helping to boost your retirement savings.

What is the maximum contribution limit for the United Natural Foods 401(k) plan?

The maximum contribution limit for the United Natural Foods 401(k) plan is in accordance with IRS guidelines, which may change annually. For 2023, the limit is $22,500 for employees under age 50.

Can I change my contribution percentage to the United Natural Foods 401(k) plan?

Yes, employees can change their contribution percentage to the United Natural Foods 401(k) plan at any time through the employee portal.

What investment options are available in the United Natural Foods 401(k) plan?

The United Natural Foods 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, to help employees diversify their retirement savings.

When can I access my funds from the United Natural Foods 401(k) plan?

You can access your funds from the United Natural Foods 401(k) plan upon reaching retirement age, or in cases of hardship or termination of employment, subject to plan rules.

Does United Natural Foods allow loans against my 401(k) balance?

Yes, United Natural Foods allows employees to take loans against their 401(k) balance, subject to certain terms and conditions outlined in the plan.

What happens to my 401(k) plan if I leave United Natural Foods?

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

Is there a vesting schedule for the United Natural Foods 401(k) company match?

Yes, United Natural Foods has a vesting schedule for the company match, which means you must work for a certain period before you fully own the matched contributions.