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2022 Year-End Tax Tips Texas Roadhouse

Healthcare Provider Update: Healthcare Provider for Texas Roadhouse Texas Roadhouse employees typically rely on Blue Cross Blue Shield of Texas (BCBS Texas) for their healthcare coverage. This provider is known for offering a range of health plans, including those that cater specifically to the needs of employees in the restaurant industry. Healthcare Cost Increases in 2026 As we approach 2026, Texas Roadhouse employees may face significant healthcare cost increases, driven largely by anticipated premium hikes in the Affordable Care Act (ACA) marketplace. Preliminary reports indicate that some states could experience rate increases exceeding 60% due to the expiration of federal premium subsidies and rising medical costs. With the possibility of out-of-pocket premiums surging by over 75% for approximately 22 million policyholders nationally, employees must proactively reassess their healthcare budgets and explore options to mitigate potential financial strains as these changes unfold. Click here to learn more

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

2. Accelerate deductions

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

7. Weigh year-end investment moves

Texas Roadhouse 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 Texas Roadhouse 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 plan does Texas Roadhouse offer to its employees?

Texas Roadhouse offers a 401(k) retirement savings plan to its employees.

How can Texas Roadhouse employees enroll in the 401(k) plan?

Texas Roadhouse employees can enroll in the 401(k) plan by completing the enrollment process through the company's HR portal or by contacting HR for assistance.

Does Texas Roadhouse match employee contributions to the 401(k) plan?

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

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

Texas Roadhouse employees are generally eligible to participate in the 401(k) plan after completing a specified period of service, typically 60 days.

What types of investment options are available in the Texas Roadhouse 401(k) plan?

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

Can Texas Roadhouse employees take loans against their 401(k) savings?

Yes, Texas Roadhouse employees may be able to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What is the vesting schedule for Texas Roadhouse's 401(k) matching contributions?

The vesting schedule for Texas Roadhouse's 401(k) matching contributions typically follows a graded vesting schedule, which means employees earn rights to the match over time.

How can Texas Roadhouse employees change their contribution percentage to the 401(k) plan?

Texas Roadhouse employees can change their contribution percentage by accessing their account online or by submitting a request through HR.

Are there any fees associated with the Texas Roadhouse 401(k) plan?

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

Can Texas Roadhouse employees roll over their 401(k) savings from a previous employer?

Yes, Texas Roadhouse employees can roll over their 401(k) savings from a previous employer into the Texas Roadhouse 401(k) plan, following the plan's rollover procedures.