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

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

Healthcare Provider Update: Waters provides health insurance coverage to its U.S.-based employees through a selection of medical plans that include options for dental, vision, and life insurance. Employees can access Health Savings Accounts (HSAs) with employer contributions, along with wellness programs, disability coverage, and retirement savings plans. The company emphasizes preventive care and offers resources to support physical and mental well-being. Waters Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

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

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

The primary purpose of Waters' 401(k) Savings Plan is to help employees save for retirement through tax-advantaged contributions.

Who is eligible to participate in Waters' 401(k) Savings Plan?

All full-time employees of Waters are eligible to participate in the 401(k) Savings Plan after completing a specified period of service.

Does Waters offer a company match for contributions to the 401(k) Savings Plan?

Yes, Waters offers a company match for employee contributions to the 401(k) Savings Plan, subject to certain limits.

How can employees enroll in Waters' 401(k) Savings Plan?

Employees can enroll in Waters' 401(k) Savings Plan through the company’s benefits portal or by contacting the HR department for assistance.

What types of contributions can employees make to Waters' 401(k) Savings 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.

Are there any fees associated with Waters' 401(k) Savings Plan?

Yes, Waters' 401(k) Savings Plan may have administrative fees, investment fees, and other costs that are disclosed in the plan documents.

How often can employees change their contribution rates to Waters' 401(k) Savings Plan?

Employees can change their contribution rates to Waters' 401(k) Savings Plan during designated enrollment periods or as permitted by the plan guidelines.

What investment options are available in Waters' 401(k) Savings Plan?

Waters' 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can employees take loans against their 401(k) accounts at Waters?

Yes, Waters allows employees to take loans against their 401(k) accounts, subject to specific terms and conditions outlined in the plan.

What happens to my 401(k) savings if I leave Waters?

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