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

2022 Year-End Tax Tips Insight Enterprises

Healthcare Provider Update: Healthcare Provider for Insight Enterprises Insight Enterprises primarily collaborates with major healthcare providers to offer comprehensive health coverage options for their employees. The notable providers interfacing with Insight Enterprises include UnitedHealthcare, Anthem Blue Cross Blue Shield, and Cigna, among others. These partnerships ensure that employees have access to a wide network of services designed to meet their healthcare needs. Potential Healthcare Cost Increases in 2026 As we approach 2026, Insight Enterprises employees may face significantly rising healthcare costs due to projected steep increases in ACA premiums. Many states anticipate premium hikes that could exceed 60%, primarily fueled by the expiration of enhanced federal subsidies and ongoing medical inflation. The Kaiser Family Foundation warns that without these subsidies, nearly 92% of marketplace enrollees could see their out-of-pocket costs soar by over 75%. Consequently, employees must proactively manage their healthcare choices and explore benefits to mitigate the impact of these escalating expenses. Click here to learn more

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

2. Accelerate deductions

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

7. Weigh year-end investment moves

Insight Enterprises 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 Insight Enterprises 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 Insight Enterprises offer?

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

How does Insight Enterprises match employee contributions to the 401(k) plan?

Insight Enterprises matches employee contributions up to a certain percentage, typically 50% of the first 6% of salary contributed.

When can employees at Insight Enterprises enroll in the 401(k) plan?

Employees at Insight Enterprises can enroll in the 401(k) plan during the initial onboarding process or during the annual open enrollment period.

What is the vesting schedule for the 401(k) contributions at Insight Enterprises?

Insight Enterprises has a vesting schedule that typically allows employees to become fully vested in company contributions after three years of service.

Are there any fees associated with the 401(k) plan at Insight Enterprises?

Yes, Insight Enterprises' 401(k) plan may have administrative fees, which are disclosed in the plan's summary plan description.

Can employees at Insight Enterprises take loans against their 401(k) savings?

Yes, Insight Enterprises allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.

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

The Insight Enterprises 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

How can employees at Insight Enterprises change their contribution percentage to the 401(k) plan?

Employees at Insight Enterprises can change their contribution percentage by submitting a request through the employee benefits portal or contacting HR.

Does Insight Enterprises offer financial education resources for employees regarding their 401(k)?

Yes, Insight Enterprises provides financial education resources, including workshops and one-on-one consultations, to help employees understand their 401(k) options.

What happens to my 401(k) if I leave Insight Enterprises?

If you leave Insight Enterprises, you can choose to roll over your 401(k) into another retirement account, cash it out, or leave it in the Insight Enterprises plan if you have a sufficient balance.