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

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

Healthcare Provider Update: Healthcare Provider for Waste Management Waste Management, Inc., a leading provider of waste collection, disposal, and recycling services in North America, partners with Cigna Healthcare to provide healthcare benefits to its employees. Cigna offers a range of health insurance plans, including medical, dental, and vision coverage, tailored to meet the needs of Waste Management's diverse workforce. Healthcare Cost Increases in 2026 As we approach 2026, Waste Management and its employees may face significant healthcare cost increases due to substantial projected hikes in health insurance premiums. The Affordable Care Act (ACA) marketplace is anticipating an average increase of over 20%, with certain states seeing hikes surpassing 60% as a result of rising medical costs and the potential expiration of enhanced federal premium subsidies. This combination of factors could lead to out-of-pocket premium costs soaring by more than 75% for many employees, placing additional financial strain on both the company and its workforce during the upcoming year. Click here to learn more

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

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

The 401(k) plan at Waste Management is a retirement savings plan that allows employees to save a portion of their earnings on a tax-deferred basis.

How can I enroll in Waste Management's 401(k) plan?

Employees can enroll in Waste Management's 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does Waste Management provide a company match for the 401(k) contributions?

Yes, Waste Management offers a company match for employee contributions to the 401(k) plan, which helps employees save more for retirement.

What is the maximum contribution limit for Waste Management's 401(k) plan?

The maximum contribution limit for Waste Management's 401(k) plan is in line with IRS regulations, which may change annually. Employees should refer to the latest IRS guidelines for current limits.

Can I change my contribution percentage to Waste Management's 401(k) plan?

Yes, employees can change their contribution percentage to Waste Management's 401(k) plan at any time by accessing their account through the HR portal.

When can I start withdrawing funds from my Waste Management 401(k) plan?

Employees can typically start withdrawing funds from their Waste Management 401(k) plan at age 59½, but specific conditions may apply.

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

Waste Management'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 vesting schedule for Waste Management's 401(k) company match?

Yes, Waste Management has a vesting schedule for the company match, which means employees must work for a certain period before they fully own the matched contributions.

How can I access my Waste Management 401(k) account?

Employees can access their Waste Management 401(k) account online through the designated retirement plan website or mobile app.

What happens to my Waste Management 401(k) if I leave the company?

If you leave Waste Management, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the Waste Management plan if permitted.