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Healthcare Provider Update: Healthcare Provider for Ingersoll Rand Ingersoll Rand, a global leader in industrial technology, offers health insurance coverage primarily through its employer-sponsored health plans. The company's healthcare benefits are managed through various health insurance providers that include access to comprehensive medical plans, wellness programs, and healthcare networks aimed at promoting employee health and productivity. Overview of Potential Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are projected to rise significantly due to a perfect storm of factors impacting the Affordable Care Act (ACA) marketplace. With anticipated premium hikes exceeding 60% in some states, coupled with the expiration of enhanced federal subsidies, many consumers could face out-of-pocket premium increases of over 75%. Insurers attribute these hikes to escalating medical costs, increased service utilization, and a challenging regulatory environment. This scenario places a heavy financial burden on individuals and families, emphasizing the need to strategically navigate healthcare choices in the upcoming year. Click here to learn more
'For Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand, doing so may allow you to defer income tax payment until the following year.
2. Accelerate deductions
Employees and retirees of Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand company. If you are an employee of Ingersoll Rand and have not already contributed the maximum amount, you should consider doing so. For 2022, Ingersoll Rand 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 Ingersoll Rand-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 Ingersoll Rand, you are generally required to take required minimum distributions (RMDs) from traditional IRAs and Ingersoll Rand-sponsored retirement plans (exceptions apply if you are still employed and participating in Ingersoll Rand'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 Ingersoll Rand, it is imperative that you make these distributions on time to avoid the late payment penalty.
7. Weigh year-end investment moves
Ingersoll Rand 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 Ingersoll Rand 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 is the Ingersoll Rand 401(k) plan?
The Ingersoll Rand 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.
How does Ingersoll Rand match employee contributions to the 401(k) plan?
Ingersoll Rand offers a company match on employee contributions up to a certain percentage, which helps employees maximize their retirement savings.
When can I enroll in the Ingersoll Rand 401(k) plan?
Employees can typically enroll in the Ingersoll Rand 401(k) plan during their initial onboarding or during the annual open enrollment period.
What are the investment options available in the Ingersoll Rand 401(k) plan?
The Ingersoll Rand 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and other investment vehicles to suit various risk tolerances.
How can I change my contribution rate to the Ingersoll Rand 401(k) plan?
Employees can change their contribution rate to the Ingersoll Rand 401(k) plan by accessing the benefits portal or contacting the HR department for assistance.
Is there a vesting schedule for the Ingersoll Rand 401(k) company match?
Yes, the Ingersoll Rand 401(k) plan has a vesting schedule that determines how much of the company match you own based on your years of service.
Can I take a loan from my Ingersoll Rand 401(k) plan?
Yes, employees may be able to take a loan from their Ingersoll Rand 401(k) plan, subject to specific terms and conditions outlined in the plan documents.
What happens to my Ingersoll Rand 401(k) if I leave the company?
If you leave Ingersoll Rand, you can choose to roll over your 401(k) balance to another retirement account, withdraw the funds, or leave it in the Ingersoll Rand plan if permitted.
How often can I change my investment allocations in the Ingersoll Rand 401(k) plan?
Employees can change their investment allocations in the Ingersoll Rand 401(k) plan as often as they wish, subject to any restrictions set by the investment options.
What is the minimum contribution percentage for the Ingersoll Rand 401(k) plan?
The minimum contribution percentage for the Ingersoll Rand 401(k) plan may vary, but employees are encouraged to contribute at least enough to receive the full company match.
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