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

2022 Year-End Tax Tips Olympic Steel

Healthcare Provider Update: Healthcare Provider for Olympic Steel The primary healthcare provider for Olympic Steel is typically Cigna HealthCare. Olympic Steel, like many employers, partners with specific insurance companies to offer health benefits to its employees. Potential Healthcare Cost Increases for 2026 As we approach 2026, Olympic Steel may face significant healthcare cost increases alongside broader market trends. Expected premium hikes in the Affordable Care Act (ACA) marketplace could exceed 60% in certain states, driven by rising medical costs, the potential expiration of enhanced federal premium subsidies, and substantial demands from large insurers. Consequently, employees enrolling in these plans might see their out-of-pocket expenses surge by over 75%, aggravating budget constraints for the company and its workforce. With a projected employer-sponsored insurance increase of 8.5%, Olympic Steel must prepare for an environment where healthcare expenses will be a critical concern, likely leading to shifts in benefits and out-of-pocket responsibilities. Click here to learn more

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

2. Accelerate deductions

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

7. Weigh year-end investment moves

Olympic Steel 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 Olympic Steel 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 is the 401(k) plan offered by Olympic Steel?

The 401(k) plan offered by Olympic Steel is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can employees at Olympic Steel enroll in the 401(k) plan?

Employees at Olympic Steel can enroll in the 401(k) plan by completing the enrollment forms provided by the HR department or through the company’s online benefits portal.

Does Olympic Steel offer a company match for the 401(k) contributions?

Yes, Olympic Steel offers a company match for employee contributions to the 401(k) plan, helping employees to maximize their retirement savings.

What is the maximum contribution limit for the 401(k) plan at Olympic Steel?

The maximum contribution limit for the 401(k) plan at Olympic Steel is aligned with IRS guidelines, which are updated annually.

When can employees at Olympic Steel start contributing to their 401(k) plan?

Employees at Olympic Steel can start contributing to their 401(k) plan after completing their eligibility period, which is typically outlined in the employee handbook.

What investment options are available in Olympic Steel's 401(k) plan?

Olympic Steel's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees at Olympic Steel take a loan against their 401(k) savings?

Yes, employees at Olympic Steel may have the option to take a loan against their 401(k) savings, subject to the plan’s terms and conditions.

What happens to my 401(k) savings if I leave Olympic Steel?

If you leave Olympic Steel, you can either roll over your 401(k) savings into another retirement account, leave it in the Olympic Steel plan (if eligible), or cash it out, although cashing out may incur taxes and penalties.

How often can employees at Olympic Steel change their contribution amounts to the 401(k) plan?

Employees at Olympic Steel can typically change their contribution amounts to the 401(k) plan at designated times throughout the year, usually during open enrollment or after a qualifying life event.

Is there a vesting schedule for the company match in Olympic Steel's 401(k) plan?

Yes, Olympic Steel has a vesting schedule for the company match, which determines how much of the matched contributions you own based on your years of service.