Healthcare Provider Update: Healthcare Provider for Interpublic Group: The Interpublic Group partners with various healthcare providers, primarily offering health benefits through its benefits program, which includes options from major national insurers like Aetna and UnitedHealthcare. This allows employees to choose plans that best fit their needs. Healthcare Cost Increases in 2026: In 2026, healthcare costs are projected to surge significantly, driven primarily by a combination of rising medical costs and the potential expiration of enhanced federal premium subsidies. This perfect storm could lead to average premium hikes of approximately 18% across the Affordable Care Act (ACA) marketplace, with some states witnessing increases exceeding 60%. Consequently, many consumers might see their out-of-pocket expenses escalate by over 75%, as the loss of subsidies compounds the effects of aggressive rate hikes from major insurers. As the healthcare landscape shifts, proactive planning for these impending costs will be crucial for individuals and families seeking to maintain coverage. Click here to learn more
'For Interpublic Group 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 Interpublic Group 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 Interpublic Group 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 Interpublic Group 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 Interpublic Group 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 Interpublic Group, doing so may allow you to defer income tax payment until the following year.
2. Accelerate deductions
Employees and retirees of Interpublic Group 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 Interpublic Group 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 Interpublic Group, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Interpublic Group 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 Interpublic Group 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 Interpublic Group company. If you are an employee of Interpublic Group and have not already contributed the maximum amount, you should consider doing so. For 2022, Interpublic Group 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 Interpublic Group-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 Interpublic Group, you are generally required to take required minimum distributions (RMDs) from traditional IRAs and Interpublic Group-sponsored retirement plans (exceptions apply if you are still employed and participating in Interpublic Group'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 Interpublic Group, it is imperative that you make these distributions on time to avoid the late payment penalty.
7. Weigh year-end investment moves
Interpublic Group 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 Interpublic Group 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 type of retirement savings plan does Interpublic Group offer to its employees?
Interpublic Group offers a 401(k) retirement savings plan to its employees.
How can employees of Interpublic Group enroll in the 401(k) plan?
Employees of Interpublic Group can enroll in the 401(k) plan by completing the enrollment process through the company’s benefits portal.
Does Interpublic Group provide any matching contributions to the 401(k) plan?
Yes, Interpublic Group provides matching contributions to the 401(k) plan, subject to certain conditions.
What is the maximum contribution limit for the 401(k) plan at Interpublic Group?
The maximum contribution limit for the 401(k) plan at Interpublic Group follows the IRS guidelines, which may change annually.
When can employees of Interpublic Group start contributing to their 401(k) plan?
Employees of Interpublic Group can start contributing to their 401(k) plan after completing their eligibility period, typically within the first few months of employment.
Are there any fees associated with Interpublic Group’s 401(k) plan?
Yes, there may be administrative fees associated with Interpublic Group’s 401(k) plan, which are disclosed in the plan documents.
Can employees of Interpublic Group take loans against their 401(k) savings?
Yes, employees of Interpublic Group may be able to take loans against their 401(k) savings, subject to the plan’s terms and conditions.
What investment options are available in Interpublic Group’s 401(k) plan?
Interpublic Group’s 401(k) plan offers a variety of investment options, including mutual funds and other investment vehicles.
How often can employees change their contribution amounts to the 401(k) plan at Interpublic Group?
Employees of Interpublic Group can typically change their contribution amounts at any time, subject to the plan’s rules.
What happens to the 401(k) savings if an employee leaves Interpublic Group?
If an employee leaves Interpublic Group, they can either roll over their 401(k) savings to another retirement account or withdraw the funds, subject to tax implications.
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