IRS Increases Standard Mileage Rates for Last Half of 2022 For American Family Employees

Company Name For plan years beginning in Year Month First Segment Second Segment Third Segment Plan Type
American Family All 2025 January 4.74% 5.55% 5.92%
American Family All 2024 January 4.89% 5.14% 5.29%

Due to recent increases in the price of fuel, the IRS has increased the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, and moving expense purposes for the second half of 2022. The standard mileage rate for computing the deductible costs of operating an automobile for charitable purposes is set by statute and remains unchanged.

For July 1, 2022, to December 31, 2022, the standard mileage rates are as follows:

  • Business use of auto : Our American Family clients may find this particularly beneficial. 62.5 cents per mile (up from 58.5 cents for January 1, 2022, to June 30, 2022) may be deducted if an auto is used for business purposes. As a American Family employee, your employer from American Family may reimburse you for your business travel expenses using the standard mileage rate. However, if American Family does not reimburse you for your business travel expenses, you cannot currently deduct your unreimbursed travel expenses as miscellaneous itemized deductions.

  • Charitable use of auto : 14 cents per mile (the same as for January 1, 2022, to June 30, 2022) may be deducted if an auto is used to provide services to a charitable organization if you itemize deductions on your income tax return. We'd like our clients from American Family to note that your charitable deduction may be limited to certain percentages of your adjusted gross income, depending on the type of charity.

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  • Medical use of auto : 22 cents per mile (up from 18 cents for January 1, 2022, to June 30, 2022) may be deducted if an auto is used to obtain medical care (or for other deductible medical reasons) if you itemize deductions on your income tax return. It's also important that our American Family clients note that you can deduct only the part of your medical and dental expenses that exceed 7.5% of the amount of your adjusted gross income.

  • Moving expense : 22 cents per mile (up from 18 cents for January 1, 2022, to June 30, 2022) may be deducted if an auto is used by a member of the Armed Forces on active duty to move, pursuant to a military order, to a permanent change of station (unless such expenses are reimbursed). The deduction for moving expenses is not currently available for other taxpayers.

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    The IRS normally updates the standard mileage rates once a year in the fall for the next calendar year. Mid-year increases in the standard mileage rates are rare — the last time the IRS made such an increase was in 2011.

    What type of retirement savings plan does American Family offer to its employees?

    American Family offers a 401(k) retirement savings plan to its employees.

    Does American Family match employee contributions to the 401(k) plan?

    Yes, American Family provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

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

    Employees of American Family are typically eligible to participate in the 401(k) plan after completing a specified period of service.

    Can American Family employees choose how to invest their 401(k) contributions?

    Yes, American Family employees can choose from a variety of investment options within the 401(k) plan to tailor their investment strategy.

    What is the maximum contribution limit for American Family's 401(k) plan?

    The maximum contribution limit for American Family's 401(k) plan is determined by IRS regulations, which may change annually.

    Does American Family allow for catch-up contributions in the 401(k) plan?

    Yes, American Family allows employees aged 50 and older to make catch-up contributions to their 401(k) plan.

    How often can American Family employees change their contribution amounts to the 401(k) plan?

    American Family employees can typically change their contribution amounts to the 401(k) plan on a quarterly basis or as specified in the plan documents.

    Are loans available from the 401(k) plan at American Family?

    Yes, American Family's 401(k) plan may allow employees to take loans against their vested balance, subject to specific terms and conditions.

    What happens to my 401(k) balance if I leave American Family?

    If you leave American Family, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the plan if allowed.

    Does American Family offer financial education resources for employees regarding the 401(k) plan?

    Yes, American Family provides financial education resources to help employees make informed decisions about their 401(k) savings.

    With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
    American Family Insurance provides a defined contribution 401(k) plan with company matching contributions. Employees can contribute pre-tax or Roth (after-tax) dollars, and American Family matches a percentage of eligible compensation. The plan includes various investment options, such as target-date funds and mutual funds. Financial planning resources and tools are available to help employees manage their retirement savings.
    Layoffs and Restructuring: In October 2023, American Family Insurance confirmed staff reductions aimed at increasing efficiencies across its operations. The layoffs affected various positions, including leadership roles, as the company consolidates areas that provide similar functions across its multiple insurance brands (Sources: Insurance Journal, The Insurer). Financial Performance: The company reported a significant underwriting loss of $1.5 billion in 2022, attributed to inflation and high catastrophe claims. Despite these losses, American Family maintains a strong financial position with plans to reinvest in products and services (Sources: Carrier Management, AM Best). Operational Changes: The restructuring aligns with American Family's strategy to streamline processes and improve cost management, which is essential for sustaining long-term growth and delivering value to customers (Sources: Insurance Journal, The Insurer).
    American Family Insurance grants RSUs that vest over time, providing shares upon vesting. Stock options are also part of their compensation, allowing employees to buy shares at a fixed price.
    American Family Insurance has consistently enhanced its employee healthcare benefits to adapt to the evolving needs of its workforce. For 2023, the company maintained comprehensive medical, dental, and vision plans. These plans offer a range of services including preventive care, major dental work, and vision care, which covers eye exams, lenses, and frames. Mental health support is also a significant part of the benefits package, with access to counseling services and wellness programs designed to support employees' mental and emotional well-being. These offerings are designed to ensure that employees have access to quality healthcare, promoting a healthier work environment and improving overall productivity. In 2024, American Family Insurance continued to refine its healthcare benefits, placing a greater emphasis on flexibility and comprehensive coverage. The company introduced enhancements such as expanded mental health resources and wellness programs aimed at managing chronic conditions and preventive care. This is particularly important given the current economic and political climate, where healthcare costs are rising and the need for robust employee support systems is critical. The company also provides various options for employees to manage healthcare costs through Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). By continuously updating its benefits offerings, American Family Insurance ensures that its employees are well-supported in maintaining their health and well-being.