New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
Essential Year-End Tax Strategies for Wells Fargo Employees
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Oil market turbulence continues to ripple through the broader economy, with crude swinging between $50 and $120 per barrel and annualized volatility near 80%. Energy-sector lending exposure, investment portfolio concentrations, and the broader macro channel of inflation and interest rates connect financial institutions to oil market volatility. Wells Fargo employees can leverage oil-driven market volatility for tax planning, timing income recognition and investment transactions around energy-influenced market movements. Working with a financial advisor can help you position your planning strategy for sustained energy price uncertainty.
Here are some things for Wells Fargo 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
Wells Fargo employees must consider opportunities to defer income to next year, particularly if you expect to 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 Wells Fargo employee, doing so may enable you to postpone payment of tax on the income until next year.
2. Accelerate deductions
Wells Fargo 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 waiting until after year-end) could make a difference on your current-year return.
3. Make deductible charitable contributions
As a Wells Fargo 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.)
As a Wells Fargo 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 Wells Fargo employees to request a Form W-4 change and for their employers from Wells Fargo to implement it in time. 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 Wells Fargo 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 Wells Fargo-sponsored retirement plan such as a 401(k) can reduce your taxable income for the current year. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2026, Wells Fargo employees can contribute up to $24,500 to a 401(k) plan ($32,500 if you're age 50 or older) and up to $7,500 to traditional and Roth IRAs combined ($8,500 if you're age 50 or older).* Contributions to employer-sponsored plans generally close at the end of the calendar year, while IRA contributions can typically be made until the tax filing deadline in April of the following year.
*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.
6. Take the required minimum distributions
If you are an employee age 73 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Wells Fargo-sponsored retirement plans (special rules apply if you're still working and participating in Wells Fargo'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
Wells Fargo 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 Wells Fargo 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
That same shift from growing assets to drawing them down applies directly to the pension decisions in front of you at Wells Fargo. Wells Fargo has frozen its defined benefit pension to new accruals, meaning your benefit is based on service and compensation accumulated up to the freeze date - but the value already locked in remains a meaningful asset worth analyzing. If a lump sum option is available, IRS segment rates in effect during the plan's lookback period directly affect the present value calculation; rising rates reduce the lump sum amount, so the rate environment at your retirement date matters. Understanding the annuity equivalent of your frozen benefit and comparing it to a potential lump sum is an important step in sequencing your retirement income from multiple sources.
On the healthcare side, Wells Fargo provides continued medical coverage to eligible retirees, which can bridge the gap between retirement and Medicare eligibility at age 65 or serve as a supplement to Medicare thereafter. Confirming the service and age requirements for retiree coverage, and understanding your premium contribution, is an important step in building an accurate healthcare cost projection. Coordinating Wells Fargo's retiree coverage with Medicare Part B and Part D enrollment timing can also reduce duplication and avoid late-enrollment penalties. Connecting your specific Wells Fargo benefits situation to a comprehensive retirement income plan - and understanding how each component interacts - gives you the most complete picture of what retirement will look like.
What is the Wells Fargo 401(k) plan?
The Wells Fargo 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them build a nest egg for retirement.
How can I enroll in the Wells Fargo 401(k) plan?
Employees can enroll in the Wells Fargo 401(k) plan through the company’s benefits portal during the enrollment period or after they become eligible.
What are the contribution limits for the Wells Fargo 401(k) plan?
For the Wells Fargo 401(k) plan, the contribution limits are set by the IRS and may change annually. Employees should check the latest IRS guidelines for the current limits.
Does Wells Fargo offer a company match for the 401(k) plan?
Yes, Wells Fargo offers a company match for contributions made to the 401(k) plan, which helps employees maximize their retirement savings.
When can I start withdrawing from my Wells Fargo 401(k) plan?
Employees can typically start withdrawing from their Wells Fargo 401(k) plan without penalties at age 59½, but specific rules may apply based on the plan provisions.
Can I take a loan against my Wells Fargo 401(k) plan?
Yes, Wells Fargo allows participants to take loans against their 401(k) balance, subject to certain terms and conditions outlined in the plan.
What investment options are available in the Wells Fargo 401(k) plan?
The Wells Fargo 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.
How often can I change my contributions to the Wells Fargo 401(k) plan?
Employees can change their contribution amounts to the Wells Fargo 401(k) plan at any time, subject to the plan's guidelines and payroll processing timelines.
What happens to my Wells Fargo 401(k) if I leave the company?
If you leave Wells Fargo, you have several options for your 401(k), including leaving the funds in the plan, rolling them over to a new employer’s plan, or transferring them to an IRA.
Is there a vesting schedule for the Wells Fargo 401(k) company match?
Yes, Wells Fargo has a vesting schedule for the company match, meaning that employees must work for a certain period before they fully own the matched contributions.
For more information you can reach the plan administrator for Wells Fargo at , ; or by calling them at .
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