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

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

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

The 401(k) plan at Wolverine World Wide is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How does Wolverine World Wide match employee contributions to the 401(k) plan?

Wolverine World Wide offers a matching contribution to the 401(k) plan, typically matching a percentage of the employee's contributions, up to a certain limit.

When can employees at Wolverine World Wide enroll in the 401(k) plan?

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

What investment options are available in the Wolverine World Wide 401(k) plan?

The Wolverine World Wide 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

Is there a vesting schedule for the matching contributions at Wolverine World Wide?

Yes, Wolverine World Wide has a vesting schedule for matching contributions, meaning employees must work for a certain period before they fully own the employer's contributions.

Can employees at Wolverine World Wide take loans against their 401(k) savings?

Yes, Wolverine World Wide allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What happens to the 401(k) plan if an employee leaves Wolverine World Wide?

If an employee leaves Wolverine World Wide, they can choose to roll over their 401(k) balance to a new employer's plan, an IRA, or take a distribution, subject to taxes and penalties.

How can employees at Wolverine World Wide access their 401(k) account information?

Employees at Wolverine World Wide can access their 401(k) account information through the company’s benefits portal or by contacting the plan administrator.

Are there any fees associated with the Wolverine World Wide 401(k) plan?

Yes, there may be administrative and investment fees associated with the Wolverine World Wide 401(k) plan, which are disclosed in the plan documents.

What is the minimum contribution rate for the 401(k) plan at Wolverine World Wide?

The minimum contribution rate for the 401(k) plan at Wolverine World Wide is typically set at 1% of the employee's salary, though employees are encouraged to contribute more.