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

2022 Year-End Tax Tips Whirlpool

Healthcare Provider Update: Healthcare Provider for Whirlpool Whirlpool primarily utilizes the services of UnitedHealthcare as one of its leading healthcare providers. This affiliation ensures that Whirlpool employees have access to a broad network of healthcare resources, including medical, dental, and vision plans tailored to their needs. Potential Healthcare Cost Increases in 2026 As we approach 2026, Whirlpool employees should brace for significant healthcare cost increases. Premiums for Affordable Care Act (ACA) marketplace insurance are expected to surge due to a perfect storm of factors, including rising medical costs and the anticipated expiration of enhanced federal subsidies. Estimates suggest that many employees could see their out-of-pocket premiums skyrocket by more than 75%, particularly in states like New York, where hikes could exceed 66%. This potential increase necessitates careful consideration of healthcare options and budgeting for Whirlpool employees to maintain financial stability in the coming year. Click here to learn more

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

2. Accelerate deductions

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

7. Weigh year-end investment moves

Whirlpool 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 Whirlpool 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 Whirlpool 401(k) Savings Plan?

The Whirlpool 401(k) Savings Plan is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis to prepare for their future.

How can I enroll in the Whirlpool 401(k) Savings Plan?

You can enroll in the Whirlpool 401(k) Savings Plan by accessing the employee benefits portal or contacting the HR department for assistance with the enrollment process.

What is the employer match for the Whirlpool 401(k) Savings Plan?

Whirlpool offers a competitive employer match for contributions made to the 401(k) Savings Plan, typically matching a percentage of employee contributions up to a certain limit.

When can I start contributing to the Whirlpool 401(k) Savings Plan?

Employees can start contributing to the Whirlpool 401(k) Savings Plan after they have completed their eligibility requirements, which are outlined in the plan documents.

What types of investment options are available in the Whirlpool 401(k) Savings Plan?

The Whirlpool 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees grow their retirement savings.

Can I change my contribution percentage to the Whirlpool 401(k) Savings Plan?

Yes, employees can change their contribution percentage to the Whirlpool 401(k) Savings Plan at any time, subject to plan rules and guidelines.

Is there a vesting schedule for Whirlpool's employer contributions?

Yes, the Whirlpool 401(k) Savings Plan includes a vesting schedule for employer contributions, which determines how much of the employer match you are entitled to based on your years of service.

How can I access my Whirlpool 401(k) Savings Plan account?

You can access your Whirlpool 401(k) Savings Plan account online through the designated retirement plan website or mobile app provided by the plan administrator.

What happens to my Whirlpool 401(k) Savings Plan if I leave the company?

If you leave Whirlpool, you have several options for your 401(k) Savings Plan, including rolling it over to another retirement account, cashing it out, or leaving it with Whirlpool until you reach retirement age.

Are loans available through the Whirlpool 401(k) Savings Plan?

Yes, the Whirlpool 401(k) Savings Plan may allow participants to take loans against their account balance, subject to certain terms and conditions.