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

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

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

The 401(k) plan at Vista Outdoor is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

How does Vista Outdoor match employee contributions to the 401(k) plan?

Vista Outdoor offers a matching contribution to the 401(k) plan, which means that for every dollar an employee contributes, the company will match a certain percentage, up to a specified limit.

When can employees at Vista Outdoor enroll in the 401(k) plan?

Employees at Vista Outdoor can enroll in the 401(k) plan during their initial onboarding period or during the annual open enrollment period.

What types of investment options are available in Vista Outdoor's 401(k) plan?

Vista Outdoor's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to choose based on their risk tolerance.

Is there a vesting schedule for the employer match in Vista Outdoor's 401(k) plan?

Yes, Vista Outdoor has a vesting schedule for the employer match, which means employees must work for the company for a certain period before they fully own the matched contributions.

Can employees take loans against their 401(k) at Vista Outdoor?

Yes, Vista Outdoor allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan.

What happens to my 401(k) if I leave Vista Outdoor?

If you leave Vista Outdoor, you have several options for your 401(k), including rolling it over into an IRA, transferring it to a new employer's plan, or cashing it out, keeping in mind the tax implications.

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

Employees at Vista Outdoor can change their contribution amounts at any time, subject to the plan's guidelines, typically during open enrollment or through specific requests.

Does Vista Outdoor provide financial education or resources for employees regarding the 401(k) plan?

Yes, Vista Outdoor offers financial education resources, including workshops and access to financial advisors, to help employees make informed decisions about their 401(k) plan.

Is there an automatic enrollment feature in Vista Outdoor's 401(k) plan?

Yes, Vista Outdoor may offer an automatic enrollment feature, where new employees are automatically enrolled in the 401(k) plan unless they choose to opt out.