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

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

Healthcare Provider Update: Medical: PPO plans with preventive care, prescription drug coverage. Dental & Vision: Offered with competitive premiums. Savings Accounts: HSA/FSA available. ACA Planning: Employees nearing retirement are encouraged to compare employer coverage with ACA marketplace options due to rising 2026 premiums Click here to learn more

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

2. Accelerate deductions
Valvoline 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 Valvoline 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.)

Featured Video

Articles you may find interesting:

4. Bump up withholding to cover a tax shortfall
As a Valvoline 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 Valvoline employees to request a Form W-4 change and for their employers from Valvoline 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 Valvoline 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 Valvoline-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, Valvoline 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 Valvoline-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 Valvoline employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Valvoline-sponsored retirement plans (special rules apply if you're still working and participating in Valvoline'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
Valvoline 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 Valvoline 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 Valvoline?

Valvoline offers a 401(k) plan that allows employees to save for retirement with pre-tax contributions, helping them build a nest egg for their future.

How can employees enroll in Valvoline's 401(k) plan?

Employees can enroll in Valvoline's 401(k) plan by accessing the enrollment portal through the company's HR website or contacting the HR department for assistance.

What types of contributions can employees make to Valvoline's 401(k) plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and may also have the option for catch-up contributions if they are age 50 or older.

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

Yes, Valvoline offers a company match for employee contributions to the 401(k) plan, which helps employees maximize their retirement savings.

What is the vesting schedule for Valvoline's 401(k) company match?

The vesting schedule for Valvoline's 401(k) company match typically follows a graded schedule, meaning employees become vested in the company match over a period of time.

Can employees change their contribution amounts to Valvoline's 401(k) plan?

Yes, employees can change their contribution amounts to Valvoline's 401(k) plan at any time, subject to the plan's rules and guidelines.

What investment options are available in Valvoline's 401(k) plan?

Valvoline's 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 loan option available in Valvoline's 401(k) plan?

Yes, Valvoline's 401(k) plan may allow employees to take loans against their account balance, subject to specific terms and conditions outlined in the plan.

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

If an employee leaves Valvoline, 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).

How often can employees access their 401(k) statements from Valvoline?

Employees can access their 401(k) statements from Valvoline on a quarterly basis, and they can also view their account online at any time.