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

Essential Year-End Tax Strategies for D.R. Horton Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for D.R. Horton D.R. Horton, being a major homebuilding company, typically provides health insurance through large insurers like UnitedHealthcare and Cigna. These providers offer a range of plans to support D.R. Horton employees and their families, including options for both individual and family coverage. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare consumers can expect significant premium increases, particularly driven by the looming expiration of enhanced federal subsidies under the Affordable Care Act. Reports indicate that some individuals may face premium hikes of up to 75%, severely impacting access to affordable healthcare. Coupled with rising medical costs-amplified by inflation and increased demand for services-these changes could place a substantial financial burden on employees and their families. The combination of these factors suggests that proactive planning in 2025 will be essential for managing the coming year's healthcare expenses. Click here to learn more

Here are some things for D.R. Horton 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
D.R. Horton 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 D.R. Horton employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
D.R. Horton 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 D.R. Horton 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.)

Featured Video

Articles you may find interesting:

4. Bump up withholding to cover a tax shortfall
As a D.R. Horton 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 D.R. Horton employees to request a Form W-4 change and for their employers from D.R. Horton 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 D.R. Horton 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 D.R. Horton-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, D.R. Horton 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 D.R. Horton-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 D.R. Horton employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and D.R. Horton-sponsored retirement plans (special rules apply if you're still working and participating in D.R. Horton'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
D.R. Horton 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 D.R. Horton 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 type of retirement plan does D.R. Horton offer to its employees?

D.R. Horton offers a 401(k) retirement savings plan to its employees.

Is there a company match for contributions made to the D.R. Horton 401(k) plan?

Yes, D.R. Horton provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

How can employees enroll in the D.R. Horton 401(k) plan?

Employees can enroll in the D.R. Horton 401(k) plan through the company’s benefits portal or by contacting the HR department for assistance.

What is the eligibility requirement for D.R. Horton employees to participate in the 401(k) plan?

Generally, D.R. Horton employees are eligible to participate in the 401(k) plan after completing a specified period of service, as outlined in the plan documents.

Can D.R. Horton employees take loans against their 401(k) savings?

Yes, D.R. Horton allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What investment options are available in the D.R. Horton 401(k) plan?

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

How often can D.R. Horton employees change their 401(k) contribution amounts?

D.R. Horton employees can change their 401(k) contribution amounts at designated times throughout the year, as specified in the plan rules.

What is the vesting schedule for D.R. Horton’s company match in the 401(k) plan?

The vesting schedule for D.R. Horton’s company match typically follows a graded vesting schedule, which means employees earn ownership of the match over time.

Are there any fees associated with managing the D.R. Horton 401(k) plan?

Yes, there may be fees associated with managing the D.R. Horton 401(k) plan, which are disclosed in the plan documents and annual statements.

How can D.R. Horton employees access their 401(k) account information?

D.R. Horton employees can access their 401(k) account information online through the plan’s designated website or by contacting the plan administrator.

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

D.R. Horton offers its employees both a defined contribution pension plan and a 401(k) plan, known as the D.R. HORTON, INC. PROFIT SHARING PLUS PLAN. The 401(k) plan is managed through Empower and is available to 9,393 employees as of the latest data. This plan allows participants to contribute a portion of their salary towards their retirement savings, with D.R. Horton offering a matching contribution. Typically, the company matches 50% of employee contributions up to a certain percentage of their salary. The defined contribution pension plan provided by D.R. Horton also plays a key role in helping employees build a secure financial future. While specific details on eligibility requirements like years of service and age qualification are not publicly available, the defined contribution nature of the plan suggests that the benefits are likely based on the total contributions made by both the employee and the employer over time.

Pension Liability Concerns: D.R. Horton has seen fluctuations in its pension liabilities over the past few years. The company’s pension liabilities in 2023 were reportedly stable, though previous years have shown variability. Monitoring these liabilities is essential in understanding the company’s long-term financial commitments. Importance: It's crucial to address this news given the potential impact of economic shifts and tax regulations on the housing market and employee benefits, which can directly influence D.R. Horton's financial stability.

Stock Options (SOs): Employees of D.R. Horton may be granted stock options that allow them to purchase company stock at a predetermined price after a certain vesting period. This price is usually set at the market value of the stock on the grant date. Restricted Stock Units (RSUs): RSUs are another form of equity compensation offered by D.R. Horton, where employees are granted units that convert into shares of company stock once certain conditions, such as time-based vesting, are met. Eligibility and Availability: D.R. Horton's stock options and RSUs are typically made available to key employees and executives, though the exact eligibility criteria may vary depending on the employee's role, performance, and tenure with the company. These equity incentives are part of D.R. Horton’s broader strategy to retain top talent and incentivize performance. For example, D.R. Horton’s recent filings indicate continued use of these compensation tools through 2022, 2023, and 2024, with ongoing reviews and updates to their stock option and RSU plans to remain competitive in the market. These incentives are detailed in the company's SEC filings and earnings reports, which are publicly available for shareholders and interested parties to review

D.R. Horton offers a comprehensive health benefits package to its employees, focusing on both short-term and long-term well-being. The company's healthcare offerings include standard health insurance plans, dental and vision coverage, flexible spending accounts (FSAs), and health savings accounts (HSAs) paired with high-deductible health plans (HDHPs). These plans provide employees with a wide range of coverage options, from basic preventative care to more comprehensive services.

Additional Articles

Check Out Articles for D.R. Horton employees

For more information you can reach the plan administrator for D.R. Horton at 1341 Horton Cir Arlington, TX 76011; or by calling them at (817) 390-8200.

https://www.payscale.com/research/US/Employer=D.R._Horton_Incorporated/Benefits https://www.hicapitalize.com/find-my-401k/dr-horton-inc/ https://carlsoncap.com/articles/nua-net-unrealized-appreciation/ https://sonmorefinancial.com/net-unrealized-appreciation-tax-savings-guide/ https://creativeplanning.com/insights/financial-planning/how-to-use-the-net-unrealized-appreciation-nua-strategy-in-your-401k/ https://www.thelayoff.com/d-r-horton https://seekingalpha.com/ https://www.nasdaq.com/ https://investor.drhorton.com/ https://ycharts.com/companies/DHI/pension_and_retirement_liab_annual https://www.businesswire.com/news/home/20220524006220/en/D.R.-Horton-Completes-Tender-Offer-to-Acquire-Vidler-Water-Resources https://roselawgroupreporter.com/2022/04/d-r-horton-to-acquire-vidler-water-resources/ https://www.kiplinger.com/retirement/cash-balance-pension-plan-options https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-defined-benefit-plan-benefit-limits https://www.emparion.com/cash-balance-pension-plan-faq/ https://www.payscale.com/research/US/Employer=D.R._Horton_Incorporated/Benefits https://www.glassdoor.com/index.htm https://www.thelayoff.com/d-r-horton#google_vignette https://intellizence.com/insights/layoff-downsizing/leading-companies-announcing-layoffs-and-hiring-freezes/