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

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

Healthcare Provider Update: Healthcare Provider for Unum Group Unum Group primarily offers employee benefits programs, including group and individual health insurance plans. Their services focus on disability income protection, life insurance, and supplemental health insurance products, thus working with various healthcare providers and networks to support their employees and clients. Potential Healthcare Cost Increases in 2026 As health insurance premiums for Affordable Care Act (ACA) marketplace plans are projected to rise significantly in 2026, Unum Group employees are likely to feel the financial strain of increased healthcare costs. With some states expected to see premium hikes exceeding 60%, the loss of enhanced federal premium subsidies could affect over 22 million enrollees, pushing their out-of-pocket expenses up by more than 75%. This surge in costs arises from a convergence of rising medical expenses, insurer rate hikes, and potential regulatory changes, making it imperative for policyholders to reassess their healthcare options and prepare for the financial implications ahead. Click here to learn more

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

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

The 401(k) plan offered by Unum Group is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

How can I enroll in the Unum Group 401(k) plan?

Employees can enroll in the Unum Group 401(k) plan by completing the enrollment process through the companys benefits portal or by contacting the HR department for assistance.

What is the employer match for the Unum Group 401(k) plan?

Unum Group offers a competitive employer match for contributions made to the 401(k) plan, which helps employees maximize their retirement savings.

When can I start contributing to the Unum Group 401(k) plan?

Employees at Unum Group can start contributing to the 401(k) plan as soon as they are eligible, typically after completing a certain period of employment.

What types of investment options are available in the Unum Group 401(k) plan?

The Unum Group 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 Unum Group 401(k) employer match?

Yes, Unum Group has a vesting schedule for the employer match, which means employees must work for a certain number of years before they fully own the matched contributions.

Can I take a loan from my Unum Group 401(k) plan?

Yes, Unum Group allows employees to take loans from their 401(k) plan, subject to certain terms and conditions outlined in the plan documents.

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

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

How often can I change my contributions to the Unum Group 401(k) plan?

Employees can change their contributions to the Unum Group 401(k) plan at any time, subject to the plans specific guidelines and deadlines.

Does Unum Group provide financial education regarding the 401(k) plan?

Yes, Unum Group offers resources and financial education programs to help employees understand their 401(k) options and make informed investment decisions.