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2022 Year-End Tax Tips Granite Construction

Healthcare Provider Update: Offers PPO and HSA-compatible medical plans through Anthem Blue Cross, with employees paying only 19% of healthcare costswell below industry average 1. As ACA premiums rise and subsidies expire, Granites low employee cost share and HSA contributions provide a strong alternative to increasingly expensive marketplace plans. Click here to learn more

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

2. Accelerate deductions

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

7. Weigh year-end investment moves

Granite Construction 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 Granite Construction 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 type of retirement savings plan does Granite Construction offer to its employees?

Granite Construction offers a 401(k) retirement savings plan to help employees save for their future.

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

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

Does Granite Construction match employee contributions to the 401(k) plan?

Yes, Granite Construction provides a matching contribution to employee 401(k) accounts, subject to certain limits.

What is the maximum contribution limit for the Granite Construction 401(k) plan?

The maximum contribution limit for the Granite Construction 401(k) plan is in line with IRS regulations, which can change annually. Employees should check the latest limits for the current year.

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

Yes, Granite Construction allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

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

The Granite Construction 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can Granite Construction employees change their 401(k) contribution amounts?

Granite Construction employees can change their 401(k) contribution amounts at any time, typically during open enrollment or through the HR portal.

Is there a vesting schedule for Granite Construction's 401(k) matching contributions?

Yes, Granite Construction has a vesting schedule for its matching contributions, which means employees must work for the company for a certain period before they fully own those contributions.

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

If Granite Construction employees leave the company, they can choose to roll over their 401(k) funds to another retirement account, cash out, or leave the funds in the Granite Construction plan, subject to plan rules.

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

Yes, there may be administrative and investment fees associated with the Granite Construction 401(k) plan. Employees should review the plan documents for specific details.

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

Granite Construction provides a comprehensive retirement benefits package, which includes the Granite Construction Profit Sharing and 401(k) Plan. This plan is a defined contribution plan, where employees can voluntarily contribute a portion of their pre-tax earnings towards their retirement. Granite Construction offers a 401(k) matching contribution that is 100% of employee contributions up to 6% of compensation, with employees becoming eligible for this match after six months of service (JobzMall) (SEC.gov). In addition to the 401(k) plan, Granite Construction offers a Profit Sharing Plan, which is tied to company profits. The profit-sharing contributions are discretionary and vary depending on the company's earnings (SimpleQDRO). Employees who work for Granite Construction for 10 years or more may also qualify for a pension plan, which complements their retirement savings (JobzMall). Furthermore, Granite Construction provides an Employee Stock Ownership Plan (ESOP), where the company contributes newly issued stock or cash that is used to purchase shares for the employees. This further enhances the retirement benefits available to employees

Restructuring Layoffs: Granite Construction has undergone a significant restructuring effort across its operations throughout 2023-2024. The company reported adjusting its leadership and operational segments to align with market trends, which resulted in notable workforce reductions and asset divestitures (World Construction Network). The adjustments have been positioned as necessary to navigate economic pressures, supply chain disruptions, and increased labor costs. This news is crucial due to the current economic climate, as companies in the construction sector are especially vulnerable to market volatility and regulatory changes. Addressing these layoffs is vital to understanding the broader trends in construction employment and their ripple effects on communities and the economy.

Granite Construction offers stock options and Restricted Stock Units (RSUs) under their 2012 and 2021 Equity Incentive Plans. These stock options are performance-based and are made available to employees as part of their compensation packages. Granite (GVA) employees are eligible to participate in the company's equity awards based on their role and performance, which align with the company’s strategic financial and non-financial goals (Last10K) (SEC.gov). Stock options and RSUs at Granite Construction are available to both managerial and supervisory personnel, aiming to enhance retention and reward significant contributors to the company's success (SEC.gov) (SEC.gov). In 2022, 2023, and 2024, Granite Construction (GVA) continued offering RSUs and stock options as part of its performance-based incentive structure. These RSUs vest over a defined period, typically contingent on meeting certain performance criteria or service durations (SEC.gov). Eligible employees include salaried personnel, primarily those in management roles across the company’s diverse sectors (Granite Construction). The incentive programs are designed to align employee interests with shareholders, promoting long-term growth and value creation

Medical Plans: Granite Construction offers comprehensive healthcare benefits, including options like PPO (Preferred Provider Organization) and HSA (Health Savings Account) plans. Anthem Blue Cross is a major provider for Granite's medical coverage, offering various plan structures such as HSA plans with high deductibles (e.g., $3,000 deductible). Employees typically have access to preventive care, primary care, and specialist visits with coverage based on plan selection. Acronyms and Healthcare-Related Terms: PPO (Preferred Provider Organization): Employees can choose providers within a network for lower out-of-pocket costs. HSA (Health Savings Account): Employees may contribute pre-tax dollars to an account for healthcare expenses. COBRA: Coverage continuation for employees after employment termination or certain life events. Open Enrollment: The annual period where employees can select or change their benefit elections. Recent Employee Healthcare News: Granite Construction has updated its benefit offerings to comply with federal healthcare reform laws, including the Affordable Care Act (ACA). In 2023 and 2024, employees have been encouraged to use online benefits platforms like Workday for enrollment. 100% company-paid health insurance for some employee categories continues to be a key benefit, particularly for those enrolled in high-deductible health plans (HDHPs) that integrate with HSAs.

Additional Articles

Check Out Articles for Granite Construction employees

For more information you can reach the plan administrator for Granite Construction at , ; or by calling them at .

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