2022 Year-End Tax Tips Avantor

Healthcare Provider Update: Healthcare Provider for Avantor Avantor, Inc. is a leading global provider of mission-critical products and services primarily serving the biopharma and healthcare sectors, among others. While Avantor operates extensively within these fields, specific details regarding partnership with a healthcare provider are typically not publicly disclosed in standard documents. However, Avantor's contributions to healthcare are primarily through the supply of high-purity materials, advanced technologies, and crucial solutions for bioprocessing and scientific research, indicating that they do engage closely with healthcare providers as part of their operations. Expected Healthcare Cost Increases in 2026 As we look toward 2026, healthcare costs are anticipated to rise dramatically, with projections indicating an average increase of 75% in out-of-pocket premiums for Affordable Care Act (ACA) marketplace enrollees. This surge is due to a convergence of factors, including the expiration of enhanced federal premium subsidies and significant rate hikes from major insurers, with some states seeing requested increases over 60%. The Kaiser Family Foundation has warned that more than 22 million individuals could be affected, facing steep premiums amidst a backdrop of escalating medical costs, requiring consumers to prepare strategically now to mitigate the financial impact in the coming year. Click here to learn more

'For Avantor 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 Avantor 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 Avantor 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 Avantor 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 Avantor 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 Avantor, doing so may allow you to defer income tax payment until the following year.

2. Accelerate deductions

Employees and retirees of Avantor 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 Avantor 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