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

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

Healthcare Provider Update: Healthcare Provider for VF Corp VF Corporation partners with various healthcare insurers for employee benefits, with notable engagement from UnitedHealthcare. This partnership allows them to provide comprehensive healthcare options to their employees, aligning with the company's commitment to employee health and well-being. Potential Healthcare Cost Increases in 2026 As VF Corp looks ahead to 2026, significant increases in healthcare costs are anticipated. The Affordable Care Act (ACA) marketplace is set to experience premium hikes averaging around 20%, driven by escalating medical costs and the looming expiration of enhanced federal subsidies, which could raise out-of-pocket premiums by over 75% for the majority of enrollees. Major insurers are reporting substantial financial pressures, exacerbated by rising labor costs, drug pricing, and ongoing inflation, leading to an uncertain outlook for both employees and employers in managing healthcare expenses. Click here to learn more

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

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

The primary purpose of the 401(k) plan at VF Corp. is to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.

How can employees at VF Corp. enroll in the 401(k) plan?

Employees at VF Corp. can enroll in the 401(k) plan by accessing the company’s benefits portal and completing the enrollment process during the designated enrollment period.

What types of contributions can employees make to the VF Corp. 401(k) plan?

Employees at VF Corp. can make pre-tax contributions, Roth after-tax contributions, and, in some cases, catch-up contributions if they are age 50 or older.

Does VF Corp. offer a company match for 401(k) contributions?

Yes, VF Corp. offers a company match for employee contributions to the 401(k) plan, which helps to enhance retirement savings.

What is the vesting schedule for the company match at VF Corp.?

The vesting schedule for the company match at VF Corp. typically follows a graded schedule, where employees become fully vested after a certain number of years of service.

Can employees at VF Corp. take loans against their 401(k) savings?

Yes, employees at VF Corp. may have the option to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What investment options are available in the VF Corp. 401(k) plan?

The VF Corp. 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles, allowing employees to diversify their portfolios.

How often can employees change their contribution amounts to the VF Corp. 401(k) plan?

Employees at VF Corp. can change their contribution amounts to the 401(k) plan at any time, subject to the plan's rules and regulations.

What resources does VF Corp. provide to help employees understand their 401(k) options?

VF Corp. provides various resources, including educational materials, webinars, and access to financial advisors, to help employees understand their 401(k) options.

Are there any fees associated with the VF Corp. 401(k) plan?

Yes, there may be fees associated with the VF Corp. 401(k) plan, such as administrative fees and investment management fees, which are disclosed in the plan documents.