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

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

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

The primary purpose of the 401(k) plan at Univar Solutions is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.

How can employees at Univar Solutions enroll in the 401(k) plan?

Employees at Univar Solutions can enroll in the 401(k) plan by accessing the company’s benefits portal and following the enrollment instructions provided.

Does Univar Solutions offer a company match for the 401(k) contributions?

Yes, Univar Solutions offers a company match for 401(k) contributions, which helps employees increase their retirement savings.

What is the maximum contribution limit for the 401(k) plan at Univar Solutions?

The maximum contribution limit for the 401(k) plan at Univar Solutions is aligned with IRS guidelines, which can change annually. Employees should check the latest limits on the benefits portal.

Can employees at Univar Solutions change their contribution percentage to the 401(k) plan?

Yes, employees at Univar Solutions can change their contribution percentage at any time through the benefits portal.

What investment options are available within the Univar Solutions 401(k) plan?

The Univar Solutions 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Is there a vesting schedule for the company match in the Univar Solutions 401(k) plan?

Yes, there is a vesting schedule for the company match in the Univar Solutions 401(k) plan, which determines when employees fully own the matched contributions.

How often can employees at Univar Solutions review their 401(k) account statements?

Employees at Univar Solutions can review their 401(k) account statements quarterly, and they can also access their account information online at any time.

What happens to the 401(k) plan if an employee leaves Univar Solutions?

If an employee leaves Univar Solutions, they have several options for their 401(k) plan, including rolling it over to an IRA or a new employer's plan, or cashing it out, subject to taxes and penalties.

Can employees take loans against their 401(k) at Univar Solutions?

Yes, employees at Univar Solutions may have the option to take loans against their 401(k) balance, subject to the plan's specific rules and limits.