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Essential Year-End Tax Strategies for Skechers U.S.A. Employees: What You Need to Know Before 2023

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Here are some things for Skechers U.S.A. 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
Skechers U.S.A. 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 Skechers U.S.A. employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
Skechers U.S.A. 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 Skechers U.S.A. 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 Skechers U.S.A. 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 Skechers U.S.A. employees to request a Form W-4 change and for their employers from Skechers U.S.A. 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 Skechers U.S.A. 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 Skechers U.S.A.-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, Skechers U.S.A. 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 Skechers U.S.A.-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 Skechers U.S.A. employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Skechers U.S.A.-sponsored retirement plans (special rules apply if you're still working and participating in Skechers U.S.A.'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
Skechers U.S.A. 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 Skechers U.S.A. 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 Skechers U.S.A. offer to its employees?

Skechers U.S.A. offers a 401(k) retirement savings plan to its employees.

Is there a company match for contributions made to the 401(k) plan at Skechers U.S.A.?

Yes, Skechers U.S.A. provides a company match for eligible employee contributions to the 401(k) plan.

How can employees at Skechers U.S.A. enroll in the 401(k) plan?

Employees at Skechers U.S.A. can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What is the minimum age requirement to participate in the Skechers U.S.A. 401(k) plan?

The minimum age requirement to participate in the Skechers U.S.A. 401(k) plan is 21 years old.

How much can employees contribute to their 401(k) plans at Skechers U.S.A.?

Employees at Skechers U.S.A. can contribute up to the IRS limit for 401(k) contributions, which is adjusted annually.

Does Skechers U.S.A. offer any investment options within the 401(k) plan?

Yes, Skechers U.S.A. offers a variety of investment options within the 401(k) plan, including mutual funds and target-date funds.

Can employees at Skechers U.S.A. take loans against their 401(k) savings?

Yes, Skechers U.S.A. allows employees to take loans against their 401(k) savings under certain conditions.

What happens to the 401(k) plan if an employee leaves Skechers U.S.A.?

If an employee leaves Skechers U.S.A., they have several options for their 401(k) plan, including rolling it over to another retirement account or cashing it out.

Are there any fees associated with the Skechers U.S.A. 401(k) plan?

Yes, there may be administrative fees associated with the Skechers U.S.A. 401(k) plan, which are disclosed in the plan documents.

How often can employees at Skechers U.S.A. change their contribution amounts to the 401(k) plan?

Employees at Skechers U.S.A. can change their contribution amounts to the 401(k) plan at specified times, typically during open enrollment periods.