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

2022 Year-End Tax Tips Public Storage

Healthcare Provider Update: Public Storage offers its employees health insurance options through the Affordable Care Act (ACA) marketplace as well as employer-sponsored plans. The specific healthcare providers utilized may vary, often including major insurers such as UnitedHealthcare and Anthem, which have strong presences in many states. As we approach 2026, significant increases in healthcare costs are anticipated, particularly for those enrolled in ACA marketplace plans. Projections suggest that average premiums could rise by approximately 18%, with certain states potentially experiencing hikes over 60%. The expected expiration of enhanced federal premium subsidies will largely contribute to these sharp increases, meaning many Public Storage employees and retirees could face drastic out-of-pocket costs. As the market grapples with rising medical expenses and insurer rate hikes, individuals should be prepared for a challenging landscape in healthcare costs as they plan for the upcoming year. Click here to learn more

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

2. Accelerate deductions

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

7. Weigh year-end investment moves

Public Storage 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 Public Storage 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 Public Storage offer to its employees?

Public Storage offers a 401(k) retirement savings plan to help employees save for retirement.

Does Public Storage match employee contributions to the 401(k) plan?

Yes, Public Storage provides a matching contribution to employee 401(k) contributions, subject to certain limits.

When can employees at Public Storage enroll in the 401(k) plan?

Employees at Public Storage can enroll in the 401(k) plan during their initial eligibility period or during the annual open enrollment period.

What is the eligibility requirement for Public Storage employees to participate in the 401(k) plan?

To participate in the 401(k) plan at Public Storage, employees must meet specific service and age requirements as outlined in the plan documents.

How can Public Storage employees make changes to their 401(k) contributions?

Public Storage employees can make changes to their 401(k) contributions by logging into the employee benefits portal or by contacting the HR department.

What investment options are available in the Public Storage 401(k) plan?

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

Can Public Storage employees take loans against their 401(k) savings?

Yes, Public Storage allows employees to take loans against their 401(k) savings, subject to certain conditions and limits.

What happens to my 401(k) account if I leave Public Storage?

If you leave Public Storage, you can choose to roll over your 401(k) balance to another retirement account, cash out your account, or leave it in the Public Storage plan if you meet the minimum balance requirement.

Are there any fees associated with the Public Storage 401(k) plan?

Yes, there may be administrative fees and investment-related expenses associated with the Public Storage 401(k) plan, which are disclosed in the plan documents.

How often can Public Storage employees change their investment allocations within the 401(k) plan?

Public Storage employees can change their investment allocations at any time, subject to the plan's trading restrictions.

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

401(k) plan with company match, discretionary profit sharing, stock purchase plan.

Public Storage provides RSUs to its executives and key employees. RSUs typically vest over a period of three years, promoting retention and alignment with company goals.