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

2022 Year-End Tax Tips Enovis

Healthcare Provider Update: Healthcare Provider for Enovis Enovis Corporation focuses primarily on innovative medical technologies and doesn't act as a traditional healthcare provider. Instead, their products are frequently utilized by healthcare providers, including hospitals and outpatient clinics, to enhance patient outcomes in areas such as orthopedic rehabilitation and musculoskeletal health. Potential Healthcare Cost Increases in 2026 As 2026 approaches, significant hikes in healthcare costs are anticipated, driven primarily by soaring drug prices, rising hospital admissions, and increasing behavioral health needs. A recent analysis indicates medical costs are forecasted to rise by approximately 8.5% for group plans and 7.5% for individual market plans. The impending expiration of enhanced federal subsidies is also likely to exacerbate these increases, potentially leading to a dramatic 75% rise in out-of-pocket premiums for policyholders, significantly impacting consumers' access to affordable coverage. As insurers navigate these challenges, cost control measures will be crucial in preserving the financial viability of healthcare for many Americans. Click here to learn more

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

2. Accelerate deductions

Employees and retirees of Enovis 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 Enovis 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 Enovis, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Enovis 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 Enovis 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 Enovis company. If you are an employee of Enovis and have not already contributed the maximum amount, you should consider doing so. For 2022, Enovis 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 Enovis-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 Enovis, you are generally required to take required minimum distributions (RMDs) from traditional IRAs and Enovis-sponsored retirement plans (exceptions apply if you are still employed and participating in Enovis'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 Enovis, it is imperative that you make these distributions on time to avoid the late payment penalty.

7. Weigh year-end investment moves

Enovis 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 Enovis 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 Enovis 401(k) plan?

The Enovis 401(k) plan is a retirement savings plan that allows employees to save a portion of their salary for retirement on a tax-deferred basis.

How can I enroll in the Enovis 401(k) plan?

Employees can enroll in the Enovis 401(k) plan by completing the enrollment process through the company's HR portal or by contacting the HR department for assistance.

Does Enovis offer a company match for the 401(k) contributions?

Yes, Enovis offers a company match for employee contributions to the 401(k) plan, which helps employees maximize their retirement savings.

What is the eligibility requirement to participate in the Enovis 401(k) plan?

To be eligible to participate in the Enovis 401(k) plan, employees must meet specific criteria, which typically include being a full-time employee and completing a certain period of service.

How much can I contribute to the Enovis 401(k) plan?

Employees can contribute up to the IRS limit set for 401(k) plans each year. Enovis may also allow for additional catch-up contributions for eligible employees.

Can I change my contribution percentage in the Enovis 401(k) plan?

Yes, employees can change their contribution percentage at any time by accessing their account through the Enovis HR portal or contacting HR.

What investment options are available in the Enovis 401(k) plan?

The Enovis 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

When can I access my Enovis 401(k) funds?

Employees can access their Enovis 401(k) funds upon reaching retirement age, or under certain circumstances such as financial hardship or termination of employment.

Are there any fees associated with the Enovis 401(k) plan?

Yes, the Enovis 401(k) plan may have administrative fees and investment-related expenses, which are disclosed in the plan documents provided to employees.

How does the Enovis 401(k) plan handle loans?

The Enovis 401(k) plan allows eligible employees to take loans against their vested balance, subject to specific terms and conditions outlined in the plan documents.

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

Enovis offers its employees a comprehensive 401(k) plan, which includes employer matching contributions of up to 4%. Employees are fully vested in the 401(k) plan from day one, providing immediate access to the matched funds (Enovis) (Enovis). The 401(k) plan at Enovis is designed to assist employees in preparing for retirement by allowing them to contribute a portion of their pre-tax earnings. Enovis' plan follows standard 401(k) terminology, offering both traditional and Roth options, providing flexibility depending on employees' tax preferences and retirement strategies. The Enovis pension plan details are less prominently outlined but involve specific eligibility criteria based on years of service and age qualifications, typical in defined benefit plans. Enovis also refers to the pension plan using common acronyms such as DB (Defined Benefit) and includes terminology like vesting periods, accrual rates, and final average pay calculations.

Restructuring and Layoffs: Enovis announced in March 2024 a significant restructuring plan aimed at streamlining operations and reducing costs. This move included a reduction in workforce by 10%, affecting various departments across the company. The company stated that the restructuring was necessary to improve efficiency and adapt to changing market conditions.

Enovis Corporation (NYSE: ENOV), a leading medical technology growth company, provides stock options and Restricted Stock Units (RSUs) to its employees as part of its compensation strategy. The stock options at Enovis are typically offered to senior executives and key personnel as incentives for performance and growth. RSUs are also granted, particularly to employees who contribute to long-term strategic projects. RSUs are awarded based on performance criteria and vest over time, aligning employees' interests with shareholders. In 2022, Enovis expanded its stock-based compensation, especially in its Reconstructive and Prevention segments. This growth resulted in a broader distribution of stock options and RSUs across various levels of management. The company reported significant innovation in its financial results, with stock options contributing to long-term employee retention

Visit Enovis's official website. Look for sections such as "Careers," "Employee Benefits," or "Corporate Responsibility" where health benefits are typically detailed. Check their latest press releases or news updates that might include changes to health benefits. Search for Enovis's annual reports or SEC filings (e.g., 10-K reports) which often include details about employee benefits and changes. Job Listings and Career Pages: Explore job postings on Enovis’s career page or job boards. Sometimes, benefits information is included in job descriptions. News Outlets and Business Journals: