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

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

Healthcare Provider Update: Healthcare Provider for Tapestry: Tapestry, the parent company of luxury fashion brands such as Coach, Kate Spade, and Stuart Weitzman, is associated with UnitedHealthcare, which is part of UnitedHealth Group. UnitedHealthcare provides Tapestry employees with a variety of health insurance options that are typically inclusive of medical, dental, and vision benefits. Potential Healthcare Cost Increases for Tapestry in 2026: As Tapestry navigates the evolving healthcare landscape, substantial increases in healthcare costs are anticipated in 2026. With the potential expiration of enhanced federal premium subsidies for Affordable Care Act (ACA) plans, many enrollees could face premium hikes exceeding 75%. Insurers are reporting a sharp rise in medical costs and have begun to implement rate increases, with some individual market plans (like those from UnitedHealthcare) requesting increases as high as 66.4%. These combined factors may significantly raise Tapestry's healthcare expenses and affect their employee benefits offerings. Click here to learn more

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

2. Accelerate deductions
Tapestry 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 Tapestry 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 Tapestry 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 Tapestry employees to request a Form W-4 change and for their employers from Tapestry 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 Tapestry 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 Tapestry-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, Tapestry 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 Tapestry-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 Tapestry employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Tapestry-sponsored retirement plans (special rules apply if you're still working and participating in Tapestry'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
Tapestry 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 Tapestry 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 Tapestry's 401(k) plan?

Tapestry's 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

How can I enroll in Tapestry's 401(k) plan?

You can enroll in Tapestry's 401(k) plan by accessing the employee benefits portal and following the enrollment instructions provided.

What types of contributions can I make to Tapestry's 401(k) plan?

Tapestry's 401(k) plan allows for pre-tax contributions, Roth after-tax contributions, and potentially catch-up contributions if you are over 50.

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

Yes, Tapestry offers a matching contribution to the 401(k) plan, which helps employees grow their retirement savings.

How much can I contribute to Tapestry's 401(k) plan each year?

For 2023, the maximum employee contribution limit to Tapestry's 401(k) plan is $22,500, with an additional $7,500 catch-up contribution allowed for employees aged 50 and older.

When can I start withdrawing from Tapestry's 401(k) plan?

You can start withdrawing from Tapestry's 401(k) plan without penalties at age 59½, although you may have options for hardship withdrawals earlier.

What investment options are available in Tapestry's 401(k) plan?

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

Can I take a loan from Tapestry's 401(k) plan?

Yes, Tapestry allows employees to take loans from their 401(k) accounts under certain conditions and limits.

How do I change my contribution percentage for Tapestry's 401(k) plan?

You can change your contribution percentage by logging into the employee benefits portal and updating your contribution settings.

What happens to my 401(k) plan if I leave Tapestry?

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