Essential Year-End Tax Strategies for HCA Healthcare Employees: What You Need to Know Before 2023

Here are some things for HCA Healthcare employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
HCA Healthcare employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a HCA Healthcare employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
HCA Healthcare employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a HCA Healthcare employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited 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 give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a HCA Healthcare employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for HCA Healthcare employees to request a Form W-4 change and for their employers from HCA Healthcare to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by HCA Healthcare employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a HCA Healthcare-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, HCA Healthcare employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a HCA Healthcare-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

6. Take the required minimum distributions
If you are a HCA Healthcare employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and HCA Healthcare-sponsored retirement plans (special rules apply if you're still working and participating in HCA Healthcare's retirement plan). You have to make the withdrawals by the date required — the end of the year for most individuals. The penalty for failing to do so is substantial: 50% of the amount that wasn't distributed on time. As a fortune 500 employee, making these distributions in a timely manner is essential as to avoid the late penalty.

7. Weigh year-end investment moves
HCA Healthcare employees and retirees shouldn't let tax considerations drive investment decisions. However, it's worth considering the tax implications of any year-end investment moves that you make. For example, if you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some or all of those gains by selling losing positions. As a HCA Healthcare employee, any losses over and above the number of your gains can be used to offset up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your taxes in future years.

Tags: Financial Planning , Tax , Retirement , 2022

What is the 401(k) plan offered by HCA Healthcare?

The 401(k) plan offered by HCA Healthcare is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax or Roth after-tax basis.

Does HCA Healthcare match employee contributions to the 401(k) plan?

Yes, HCA Healthcare provides a matching contribution to employee 401(k) accounts, which helps to enhance retirement savings.

How can I enroll in the 401(k) plan at HCA Healthcare?

Employees can enroll in the HCA Healthcare 401(k) plan through the company's benefits portal during the enrollment period or when they first become eligible.

What types of investment options are available in the HCA Healthcare 401(k) plan?

HCA Healthcare's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

Is there a waiting period before I can participate in the HCA Healthcare 401(k) plan?

Yes, HCA Healthcare may have a waiting period for new employees before they can participate in the 401(k) plan, typically based on the employee's start date and eligibility criteria.

How much can I contribute to my 401(k) plan at HCA Healthcare?

Employees at HCA Healthcare can contribute up to the IRS limit for 401(k) contributions, which may change annually.

Can I take a loan against my 401(k) savings at HCA Healthcare?

Yes, HCA Healthcare allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What happens to my 401(k) if I leave HCA Healthcare?

If you leave HCA Healthcare, you can choose to roll over your 401(k) balance into another retirement account, cash it out, or leave it in the HCA Healthcare plan if you meet the eligibility requirements.

Can I change my contribution amount to the HCA Healthcare 401(k) plan?

Yes, employees can change their contribution amounts to the HCA Healthcare 401(k) plan at any time, subject to the plan's rules.

Does HCA Healthcare provide financial education regarding the 401(k) plan?

Yes, HCA Healthcare offers resources and financial education to help employees make informed decisions about their 401(k) savings and investments.

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

HCA Healthcare is one of the largest for-profit healthcare providers in the U.S., operating hospitals and surgery centers. The company focuses on delivering high-quality healthcare services across its facilities.

HCA Healthcare offers RSUs and stock options to eligible employees. These incentives vest over time, aligning employee interests with company performance.