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

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

Healthcare Provider Update: Healthcare Provider for Walgreens Boots Alliance Walgreens Boots Alliance primarily operates through its retail pharmacy network, including Walgreens and Boots pharmacies, along with a range of healthcare services. The company partners with various insurance and healthcare providers to offer accessible pharmacy services, health and wellness products, and integrated healthcare solutions aimed at enhancing patient care. Potential Healthcare Cost Increases in 2026 In 2026, employees of Walgreens Boots Alliance are likely to face significant increases in healthcare costs as insurance premiums for ACA marketplace plans are projected to rise sharply, in some instances exceeding 60%. With the potential expiration of enhanced federal subsidies, many enrollees may see their out-of-pocket costs escalate by over 75%. Coupled with rising medical costs driven by inflation and increased demand for expensive treatments, employees need to be proactive in understanding their health benefits and planning accordingly to manage these anticipated financial burdens. Click here to learn more

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

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

Walgreens Boots Alliance offers a 401(k) retirement savings plan to its employees.

How can employees of Walgreens Boots Alliance enroll in the 401(k) plan?

Employees of Walgreens Boots Alliance can enroll in the 401(k) plan through the company’s HR portal or by contacting the benefits department for assistance.

Does Walgreens Boots Alliance match employee contributions to the 401(k) plan?

Yes, Walgreens Boots Alliance provides a matching contribution to the 401(k) plan, subject to certain limits.

What is the maximum employee contribution percentage allowed in the Walgreens Boots Alliance 401(k) plan?

The maximum employee contribution percentage allowed in the Walgreens Boots Alliance 401(k) plan is in line with IRS limits, which can change annually.

Are there any waiting periods for new employees to join the Walgreens Boots Alliance 401(k) plan?

Walgreens Boots Alliance typically allows new employees to join the 401(k) plan after completing a specified waiting period, usually within the first few months of employment.

Can employees of Walgreens Boots Alliance take loans against their 401(k) savings?

Yes, employees of Walgreens Boots Alliance may have the option to take loans against their 401(k) savings, subject to the plan's terms.

What investment options are available within the Walgreens Boots Alliance 401(k) plan?

The Walgreens Boots Alliance 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees change their contribution amounts to the Walgreens Boots Alliance 401(k) plan?

Employees of Walgreens Boots Alliance can typically change their contribution amounts at any time, subject to the plan’s guidelines.

What happens to the 401(k) savings if an employee leaves Walgreens Boots Alliance?

If an employee leaves Walgreens Boots Alliance, they can choose to roll over their 401(k) savings to another retirement account, cash out, or leave the savings in the plan, depending on the balance and plan rules.

Does Walgreens Boots Alliance provide educational resources to help employees understand their 401(k) options?

Yes, Walgreens Boots Alliance offers educational resources and workshops to help employees understand their 401(k) options and make informed decisions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Walgreens Boots Alliance is a global leader in retail pharmacy, known for its extensive network of drugstores and health and wellness services.

Walgreens Boots Alliance provides RSUs to certain employees. These RSUs vest over time, encouraging employee retention.