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Healthcare Provider Update: Healthcare Provider for Diamondback Energy Diamondback Energy partners with UnitedHealthcare as its healthcare provider. This relationship is significant as UnitedHealthcare is one of the largest health insurers in the United States, offering a comprehensive range of plans that cater to the diverse needs of Diamondback's workforce. Healthcare Cost Increases in 2026 In 2026, the healthcare landscape is anticipated to face considerable challenges, particularly for Diamondback Energy and its employees. With health insurance premiums for ACA marketplace plans projected to rise sharply-potentially by over 75% for many enrollees-the impact of expiring federal premium subsidies will be profoundly felt. This scenario is compounded by rising medical costs, with forecasts suggesting that many states may experience increases as steep as 66%, significantly affecting overall healthcare affordability for Diamondback's workforce. As these changes unfold, it is crucial for companies like Diamondback Energy to strategize on managing healthcare-related expenses effectively to support their employees amidst a fluctuating market. Click here to learn more
'For Diamondback Energy 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 Diamondback Energy 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:
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1. Tax strategies for employees and retirees of Diamondback Energy companies, including deferring income and accelerating deductions.
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2. Charitable contributions and their impact on tax returns for individuals who itemize deductions.
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3. The importance of required minimum distributions (RMDs) and year-end investment decisions.
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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 Diamondback Energy 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 Diamondback Energy companies to consider as they evaluate potential tax moves between now and the end of the year.
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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 Diamondback Energy, doing so may allow you to defer income tax payment until the following year.
2. Accelerate deductions
Employees and retirees of Diamondback Energy 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 Diamondback Energy 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 Diamondback Energy, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Diamondback Energy 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 Diamondback Energy 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 Diamondback Energy company. If you are an employee of Diamondback Energy and have not already contributed the maximum amount, you should consider doing so. For 2022, Diamondback Energy 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 Diamondback Energy-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 Diamondback Energy, you are generally required to take required minimum distributions (RMDs) from traditional IRAs and Diamondback Energy-sponsored retirement plans (exceptions apply if you are still employed and participating in Diamondback Energy'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 Diamondback Energy, it is imperative that you make these distributions on time to avoid the late payment penalty.
7. Weigh year-end investment moves
Diamondback Energy 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 Diamondback Energy 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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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 type of retirement plan does Diamondback Energy offer?
Diamondback Energy offers a 401(k) retirement savings plan to help employees save for their future.
Is there a company match for contributions to the 401(k) plan at Diamondback Energy?
Yes, Diamondback Energy provides a company match for employee contributions to the 401(k) plan, enhancing your retirement savings.
How can I enroll in the 401(k) plan at Diamondback Energy?
Employees can enroll in the Diamondback Energy 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What is the eligibility requirement to participate in Diamondback Energy's 401(k) plan?
Most employees at Diamondback Energy are eligible to participate in the 401(k) plan after completing a specified period of service.
What investment options are available in Diamondback Energy's 401(k) plan?
Diamondback Energy's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Can I change my contribution percentage to the 401(k) plan at Diamondback Energy?
Yes, employees can change their contribution percentage to the Diamondback Energy 401(k) plan at any time, subject to certain guidelines.
Does Diamondback Energy offer loans against the 401(k) plan?
Yes, Diamondback Energy allows employees to take loans against their 401(k) plan balance, subject to the plan's terms and conditions.
How often can I change my investment allocations in the Diamondback Energy 401(k) plan?
Employees can change their investment allocations in the Diamondback Energy 401(k) plan as frequently as they wish, typically through the plan’s online portal.
What happens to my 401(k) if I leave Diamondback Energy?
If you leave Diamondback Energy, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the Diamondback plan if eligible.
Are there any fees associated with the Diamondback Energy 401(k) plan?
Yes, there may be administrative fees and investment-related fees associated with the Diamondback Energy 401(k) plan, which are disclosed in the plan documents.
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