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

2022 Year-End Tax Tips GameStop

Healthcare Provider Update: Healthcare Provider for GameStop GameStop utilizes a range of healthcare providers, largely dependent on the insurance options available through their employee benefits program. The leading provider for GameStop's health insurance plans is typically UnitedHealthcare, which offers coverage options under the Affordable Care Act (ACA) framework. This partnership allows GameStop employees and their families to access a variety of health services in their locale. Potential Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are projected to rise significantly, influenced by a confluence of factors that may impact employees at companies like GameStop. Insurance premiums for Affordable Care Act marketplace plans are expected to soar, with some states seeing increases surpassing 60%. The looming expiration of enhanced federal premium subsidies could push out-of-pocket expenses for most enrollees up more than 75%, making the financial landscape for healthcare increasingly daunting. Coupled with rising medical costs attributed to both inflation in healthcare services and the proliferation of high-priced drugs, employees may face steeper healthcare bills if proactive measures are not taken to mitigate these costs before the changes take effect. Click here to learn more

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

2. Accelerate deductions

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

7. Weigh year-end investment moves

GameStop 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 GameStop 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.

Featured Video

Articles you may find interesting:

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 primary purpose of GameStop's 401(k) plan?

The primary purpose of GameStop's 401(k) plan is to help employees save for retirement by allowing them to contribute a portion of their salary to a tax-advantaged account.

How can GameStop employees enroll in the 401(k) plan?

GameStop employees can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

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

Yes, GameStop offers a company match for 401(k) contributions, which helps employees grow their retirement savings.

What types of investment options are available in GameStop's 401(k) plan?

GameStop's 401(k) plan typically offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

When can GameStop employees start contributing to their 401(k) plan?

GameStop employees can start contributing to their 401(k) plan after they have completed the eligibility requirements set by the company.

Is there a minimum contribution requirement for GameStop's 401(k) plan?

Yes, GameStop may have a minimum contribution requirement, which employees should check in the plan documents or with HR.

Can GameStop employees take loans against their 401(k) savings?

Yes, GameStop allows employees to take loans against their 401(k) savings, subject to certain terms and conditions outlined in the plan.

What happens to GameStop employees' 401(k) accounts if they leave the company?

If GameStop employees leave the company, they can choose to roll over their 401(k) account to a new employer's plan, an IRA, or cash out their balance, subject to taxes and penalties.

Are there any fees associated with GameStop's 401(k) plan?

Yes, GameStop's 401(k) plan may have administrative fees, investment fees, and other costs that employees should review in the plan documents.

How often can GameStop employees change their contribution amounts?

GameStop employees can typically change their contribution amounts during open enrollment periods or at designated times throughout the year.

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

GameStop provides its employees with both a 401(k) plan and a defined contribution pension plan. These retirement benefits are designed to help employees secure a steady income after their career. GameStop's 401(k) plan, known as the GameStop Corp. Employees' Savings Plan, allows employees to contribute a portion of their earnings to their retirement savings. GameStop offers matching contributions to encourage employee participation, typically matching 100% for the first 3% contributed and 50% for the next 2%, though specifics may vary slightly by year. For the years 2022, 2023, and 2024, the contribution limits set by the IRS have increased, with employees allowed to contribute up to $22,500 in 2023 and $23,000 in 2024. Catch-up contributions for those aged 50 and older are an additional $7,500 annually. This plan provides flexible investment options and allows for rollover of funds into new plans if employees leave the company (Smart 40K Plus) (PayScale). GameStop's defined contribution pension plan works by allowing the company to make contributions to individual employee accounts, which are invested in a selection of funds chosen by the employee. Over time, this fund grows based on contributions and market performance. The plan does not specify a fixed benefit at retirement; instead, the payout depends on the investment performance. In 2022, the average account value for employees participating in the GameStop Corp. Employees' Savings Plan was $11,942

Restructuring and Layoffs: In early 2024, GameStop announced a major restructuring plan aimed at streamlining operations and reducing costs. This included the closure of several underperforming stores and a significant reduction in workforce. The company cited the need to adapt to changing retail environments and improve profitability as key reasons for these actions. Analysts point out that GameStop’s move is part of a broader trend of retailers adjusting their business models in response to economic uncertainties and shifts in consumer behavior. This restructuring is particularly relevant given the current economic climate, which is marked by inflation and shifts in consumer spending patterns.

2022: RSUs were granted to senior management and high-potential employees to retain top talent and incentivize performance. Vesting periods typically ranged from one to four years. Source: GameStop 2022 Annual Report, Page 46. 2023: GameStop adjusted its RSU program to reflect changes in executive compensation practices and market conditions. RSUs were granted with performance-based vesting conditions. Source: GameStop 2023 Proxy Statement, Page 35. 2024: The RSU program for 2024 includes modifications to align with strategic goals and market trends, with enhanced focus on performance metrics. Eligibility remains concentrated on key personnel and executives. Source: GameStop 2024 SEC Filing, Page 53. Specific Company Stock Options and RSUs:

Visit GameStop’s official website and look for their “Careers” or “Benefits” section. Check if they have any recent press releases or updates regarding employee health benefits. Employee Review Websites: Glassdoor: Look up GameStop’s page on Glassdoor to see employee reviews about benefits. Indeed: Search for GameStop and check the “Benefits” section for employee comments. Business News Websites: Forbes: Search for articles related to GameStop and employee benefits. Business Insider: Look for any recent news affecting GameStop's health benefits. Industry News Sources: HR Dive: This site often covers updates on employee benefits and health care trends. SHRM (Society for Human Resource Management): Look for articles on changes in health benefits in retail or GameStop specifically. Government or Legal Websites: U.S. Department of Labor: Check if there are any filings or notices related to employee benefits for GameStop. IRS: Search for any relevant information on health benefits regulations that might affect GameStop. Specific Healthcare-Related Terms and Acronyms: HMO (Health Maintenance Organization) PPO (Preferred Provider Organization) EPO (Exclusive Provider Organization) HDHP (High Deductible Health Plan) FSA (Flexible Spending Account) HSA (Health Savings Account) COBRA (Consolidated Omnibus Budget Reconciliation Act) EAP (Employee Assistance Program) Recent Employee Healthcare News for GameStop: Look for any recent changes in their health benefits plans, such as increased premiums, changes in coverage, or new wellness programs. Check if there have been any major lawsuits or regulatory changes affecting their health benefits. Look for any company announcements about improving or reducing benefits. You can use these sources and terms to get a comprehensive view of GameStop’s employee health benefits for the years 2022, 2023, or 2024. If you need a detailed summary of specific findings, let me know!