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

2022 Year-End Tax Tips Acuity Brands

Healthcare Provider Update: Healthcare Provider for Acuity Brands Acuity Brands, a leading provider of lighting and building management solutions, primarily offers its healthcare benefits through large national insurers such as UnitedHealthcare. Employees may access these plans to cover a variety of medical needs, reflecting the competitive landscape for employer-sponsored health insurance. Potential Healthcare Cost Increases in 2026 Looking ahead to 2026, Acuity Brands employees should brace for significant healthcare cost increases. Record premium hikes are anticipated in the Affordable Care Act (ACA) marketplace, with some states experiencing increases as steep as 66%. Coupled with the expiration of enhanced federal premium subsidies, many employees may see their out-of-pocket costs soar by over 75%. Companies across the U.S. are responding to rising healthcare expenses by adjusting benefit structures, which may further impact the affordability of coverage for employees. Click here to learn more

'For Acuity Brands employees, proactive tax planning strategies, like deferring income and accelerating deductions, can significantly enhance retirement readiness, and working with an advisor like Kevin Landis from The Retirement Group, a division of Wealth Enhancement Group, can help you make the most of these opportunities.'

'As the tax landscape evolves, it's crucial for Acuity Brands employees to carefully weigh year-end moves such as contributing to retirement accounts or adjusting withholding, and an advisor like Brent Wolf from The Retirement Group, a division of Wealth Enhancement Group, can guide you in optimizing your tax strategy for long-term financial success.'

In this article we will discuss:

1. Tax strategies for employees and retirees of Acuity Brands companies, including deferring income and accelerating deductions.
2. Charitable contributions and their impact on tax returns for individuals who itemize deductions.
3. The importance of required minimum distributions (RMDs) and year-end investment decisions.
According to a recent study by the Insured Retirement Institute (IRI), a leading financial research firm, 60% of Baby Boomers plan to continue working in some capacity during retirement. This means that for many employees and retirees of Acuity Brands companies, tax planning strategies will continue to be relevant well beyond retirement age. It is important for this demographic to consider the impact of their retirement income on their tax liabilities, as well as the tax implications of continuing to work in retirement. With that taken into account, Here are some factors for employees and retirees of Acuity Brands companies to consider as they evaluate potential tax moves between now and the end of the year.
1. Defer income to next year

Consider opportunities to defer income until 2023, especially if you believe you will be in a reduced tax bracket in 2023. For instance, you may be able to defer an end-of-year bonus or delay the collection of business debts, rent, and service payments. As an employee of Acuity Brands, doing so may allow you to defer income tax payment until the following year.

2. Accelerate deductions

Employees and retirees of Acuity Brands should also seek opportunities to accelerate deductions into the current tax year. If you itemize deductions, paying medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could affect your 2022 tax return.

3. Make deductible charitable contributions

Generally, if you are an employee of Acuity Brands and itemize deductions on your federal income tax return, you can deduct charitable contributions up 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 donate and the type of organization to which you donate. (Exceeding quantities may be carried forward for a maximum of five years.)

4. Bump up withholding to cover a tax shortfall

If it appears that you will incur federal income tax for the year as an employee of Acuity Brands, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Acuity Brands employees to request a Form W-4 modification and for their employers to implement the change by 2022. The greatest benefit is that withholding is considered to have been paid equitably throughout the year, as opposed to when the dollars are actually deducted from your paycheck. This strategy can be utilized by employees of Acuity Brands to make up for missed or insufficient quarterly estimated tax payments.

5. Save more for retirement

You can reduce your 2022 taxable income through contributions to a traditional IRA and a 401(k) sponsored by a Acuity Brands company. If you are an employee of Acuity Brands and have not already contributed the maximum amount, you should consider doing so. For 2022, Acuity Brands employees can contribute up to $20,500 to a 401(k) plan ($27,000 if over 50) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if over 50).* The window for 2022 contributions to a Acuity Brands-sponsored plan typically concludes at the end of the year, whereas the deadline for 2022 IRA contributions is April 18, 2023.

Contributions to a Roth account are not tax-deductible, but qualified Roth distributions are not taxable.

6. Take the required minimum distributions

If you are 72 or older and work for Acuity Brands, you are generally required to take required minimum distributions (RMDs) from traditional IRAs and Acuity Brands-sponsored retirement plans (exceptions apply if you are still employed and participating in Acuity Brands's retirement plan). The deadline for withdrawals is typically the end of the year for most individuals. The penalty for noncompliance is severe: fifty percent of the quantity that was not distributed on time. As an employee of Acuity Brands, it is imperative that you make these distributions on time to avoid the late payment penalty.

7. Weigh year-end investment moves

Acuity Brands employees and retirees shouldn't let tax considerations dictate investment decisions. Nonetheless, you should consider the tax implications of any year-end investment decisions. If you have realized net capital gains from the sale of securities at a profit, you may be able to avoid taxation on some or all of these gains by selling negative positions. Any losses in excess of your gains as an employee of Acuity Brands can be used to mitigate up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your tax liability in future years.

Conclusion

Preparing your taxes is like taking care of your health. Just as you need to stay on top of your physical well-being to prevent future health issues, you also need to plan ahead and take the necessary steps to ensure that you're not hit with unexpected tax liabilities in the future. By deferring income, accelerating deductions, making charitable contributions, and contributing to your retirement accounts, you can ensure that your financial health is in good shape for the years ahead. Just as you wouldn't skip your annual check-up, you shouldn't overlook the importance of taking care of your taxes.

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Sources :

1. Weltman, Barbara. '5 Tax Planning Strategies for Your Retirement Income.' Investopedia , 3 Oct. 2022, https://www.investopedia.com/retirement/tax-strategies-your-retirement-income/?utm_source=chatgpt.com .

2. Morgan Stanley. 'Tax-Smart Strategies for Your Retirement.' Morgan Stanley , 2023, https://www.morganstanley.com/articles/tax-strategies-for-retirement?utm_source=chatgpt.com .

3. Vanguard. 'Tax-Efficient Retirement Strategy.' Vanguard , 2023, https://investor.vanguard.com/advice/tax-efficient-retirement-strategy?utm_source=chatgpt.com .

4. Thrivent. '6 Retirement Tax Planning Strategies You Should Know.' Thrivent , 2023, https://www.thrivent.com/insights/taxes/6-retirement-tax-planning-strategies-you-should-know?utm_source=chatgpt.com .

5. New York Life Insurance. 'Tax Planning Strategies for Retirement.' New York Life Insurance , 2023, https://www.newyorklife.com/articles/tax-considerations-in-retirement?utm_source=chatgpt.com .

What is the 401k/Savings Plan offered by Acuity Brands?

The 401k/Savings Plan at Acuity Brands is a retirement savings plan that allows employees to save a portion of their paycheck on a pre-tax or after-tax basis for their future retirement.

How can I enroll in the Acuity Brands 401k/Savings Plan?

Employees can enroll in the Acuity Brands 401k/Savings Plan by completing the online enrollment process through the company's benefits portal or by contacting HR for assistance.

Does Acuity Brands offer a company match for the 401k/Savings Plan?

Yes, Acuity Brands offers a company match for contributions made to the 401k/Savings Plan, which helps employees boost their retirement savings.

What is the vesting schedule for the Acuity Brands 401k/Savings Plan?

The vesting schedule for the Acuity Brands 401k/Savings Plan typically outlines the period an employee must work at the company to fully own the employer's contributions, which can vary based on tenure.

Can I take a loan against my Acuity Brands 401k/Savings Plan?

Yes, Acuity Brands allows employees to take a loan against their 401k/Savings Plan, subject to specific terms and conditions outlined in the plan documents.

What investment options are available in the Acuity Brands 401k/Savings Plan?

The Acuity Brands 401k/Savings Plan offers a variety of investment options, including mutual funds, target date funds, and other asset classes to help employees diversify their portfolios.

How often can I change my contribution amount to the Acuity Brands 401k/Savings Plan?

Employees can change their contribution amount to the Acuity Brands 401k/Savings Plan at any time, typically through the benefits portal or by contacting HR.

What happens to my Acuity Brands 401k/Savings Plan if I leave the company?

If you leave Acuity Brands, you have several options for your 401k/Savings Plan, including rolling it over to another retirement account, cashing it out (subject to taxes and penalties), or leaving it in the plan if eligible.

Is there a minimum contribution requirement for the Acuity Brands 401k/Savings Plan?

Yes, Acuity Brands may have a minimum contribution requirement for the 401k/Savings Plan, which is typically outlined in the plan documents.

Can I contribute to the Acuity Brands 401k/Savings Plan if I am part-time?

Yes, part-time employees at Acuity Brands may be eligible to contribute to the 401k/Savings Plan, depending on the specific eligibility criteria set by the company.

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

Acuity Brands announced a significant restructuring plan aimed at optimizing its operational efficiency. This involves layoffs of approximately 10% of its workforce, primarily in the manufacturing and administrative sectors. Additionally, the company is revising its pension plan to reduce future liabilities and enhancing its 401(k) match to retain key employees.

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For more information you can reach the plan administrator for Acuity Brands at 1170 Peachtree Street NE, Suite 2300 Atlanta, GA 30309; or by calling them at (404) 853-1400.