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

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

Healthcare Provider Update: Viatris Healthcare Provider Information Viatris, as a global healthcare company, partners with a variety of healthcare providers to ensure that high-quality medicines are accessible to patients. While specific healthcare partnerships vary by region and the type of products offered, Viatris focuses on collaborating with providers involved in specialty pharmaceuticals and chronic disease management. This includes partnerships with hospitals, clinics, and pharmacies to enhance patient health outcomes through innovative solutions and patient access programs. Brief Overview of Potential Healthcare Cost Increases in 2026 As healthcare costs continue to rise, Viatris employees may face significant increases in their out-of-pocket expenses starting in 2026. Projections indicate that premiums for Affordable Care Act (ACA) marketplace plans could surge, with some states experiencing hikes of over 60%. This surge stems from a confluence of factors, including the expected expiration of enhanced federal premium subsidies and ongoing medical inflation, which is projected to exacerbate the burden on consumers. Companies are also revising their employee health plans, potentially leading to higher deductibles and more substantial cost-sharing, placing greater financial pressure on employees seeking affordable healthcare coverage. Click here to learn more

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

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

The Viatris 401(k) plan is a retirement savings plan that allows eligible employees to save for retirement through pre-tax and/or Roth contributions.

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

You can enroll in the Viatris 401(k) plan by accessing the employee benefits portal and following the enrollment instructions provided there.

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

Viatris offers a matching contribution to the 401(k) plan, which may vary based on your contributions and the company's policy. You should refer to the plan documents for specific details.

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

Eligible employees can start contributing to the Viatris 401(k) plan after completing the required waiting period, typically within the first few months of employment.

What types of contributions can I make to the Viatris 401(k) plan?

Employees can make pre-tax contributions, Roth contributions, and potentially after-tax contributions to the Viatris 401(k) plan, depending on the specific plan provisions.

Are there any fees associated with the Viatris 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with the Viatris 401(k) plan. You can find detailed information in the plan's fee disclosure document.

How does the Viatris 401(k) plan help me save for retirement?

The Viatris 401(k) plan allows you to save for retirement on a tax-advantaged basis, helping you grow your savings over time through contributions and potential employer matching.

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

Yes, the Viatris 401(k) plan may allow loans, subject to certain conditions and limits. You should review the plan documents or consult the HR department for specific details.

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

If you leave Viatris, you will have several options for your 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it with Viatris, depending on the plan's rules.

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

You can typically change your contribution amount to the Viatris 401(k) plan at least once per year or during designated enrollment periods.