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Healthcare Provider Update: Provides health insurance through Kaiser, Anthem Blue Cross, and HMSA, with options including PPO, HDHP with HSA, and EPO plans4. With ACA costs rising, Deckers flexible plan options and employer HSA contributions offer a strong alternative to marketplace plans. Click here to learn more
'For Deckers Outdoor employees, proactive tax planning strategies, like deferring income and accelerating deductions, can significantly enhance retirement readiness, and working with an advisor like Kevin Landis from The Retirement Group, a division of Wealth Enhancement Group, can help you make the most of these opportunities.'
'As the tax landscape evolves, it's crucial for Deckers Outdoor employees to carefully weigh year-end moves such as contributing to retirement accounts or adjusting withholding, and an advisor like Brent Wolf from The Retirement Group, a division of Wealth Enhancement Group, can guide you in optimizing your tax strategy for long-term financial success.'
In this article we will discuss:
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1. Tax strategies for employees and retirees of Deckers Outdoor companies, including deferring income and accelerating deductions.
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2. Charitable contributions and their impact on tax returns for individuals who itemize deductions.
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3. The importance of required minimum distributions (RMDs) and year-end investment decisions.
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According to a recent study by the Insured Retirement Institute (IRI), a leading financial research firm, 60% of Baby Boomers plan to continue working in some capacity during retirement. This means that for many employees and retirees of Deckers Outdoor companies, tax planning strategies will continue to be relevant well beyond retirement age. It is important for this demographic to consider the impact of their retirement income on their tax liabilities, as well as the tax implications of continuing to work in retirement. With that taken into account, Here are some factors for employees and retirees of Deckers Outdoor companies to consider as they evaluate potential tax moves between now and the end of the year.
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1. Defer income to next year
Consider opportunities to defer income until 2023, especially if you believe you will be in a reduced tax bracket in 2023. For instance, you may be able to defer an end-of-year bonus or delay the collection of business debts, rent, and service payments. As an employee of Deckers Outdoor, doing so may allow you to defer income tax payment until the following year.
2. Accelerate deductions
Employees and retirees of Deckers Outdoor should also seek opportunities to accelerate deductions into the current tax year. If you itemize deductions, paying medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could affect your 2022 tax return.
3. Make deductible charitable contributions
Generally, if you are an employee of Deckers Outdoor and itemize deductions on your federal income tax return, you can deduct charitable contributions up 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 donate and the type of organization to which you donate. (Exceeding quantities may be carried forward for a maximum of five years.)
4. Bump up withholding to cover a tax shortfall
If it appears that you will incur federal income tax for the year as an employee of Deckers Outdoor, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Deckers Outdoor employees to request a Form W-4 modification and for their employers to implement the change by 2022. The greatest benefit is that withholding is considered to have been paid equitably throughout the year, as opposed to when the dollars are actually deducted from your paycheck. This strategy can be utilized by employees of Deckers Outdoor to make up for missed or insufficient quarterly estimated tax payments.
5. Save more for retirement
You can reduce your 2022 taxable income through contributions to a traditional IRA and a 401(k) sponsored by a Deckers Outdoor company. If you are an employee of Deckers Outdoor and have not already contributed the maximum amount, you should consider doing so. For 2022, Deckers Outdoor employees can contribute up to $20,500 to a 401(k) plan ($27,000 if over 50) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if over 50).* The window for 2022 contributions to a Deckers Outdoor-sponsored plan typically concludes at the end of the year, whereas the deadline for 2022 IRA contributions is April 18, 2023.
Contributions to a Roth account are not tax-deductible, but qualified Roth distributions are not taxable.
6. Take the required minimum distributions
If you are 72 or older and work for Deckers Outdoor, you are generally required to take required minimum distributions (RMDs) from traditional IRAs and Deckers Outdoor-sponsored retirement plans (exceptions apply if you are still employed and participating in Deckers Outdoor's retirement plan). The deadline for withdrawals is typically the end of the year for most individuals. The penalty for noncompliance is severe: fifty percent of the quantity that was not distributed on time. As an employee of Deckers Outdoor, it is imperative that you make these distributions on time to avoid the late payment penalty.
7. Weigh year-end investment moves
Deckers Outdoor employees and retirees shouldn't let tax considerations dictate investment decisions. Nonetheless, you should consider the tax implications of any year-end investment decisions. If you have realized net capital gains from the sale of securities at a profit, you may be able to avoid taxation on some or all of these gains by selling negative positions. Any losses in excess of your gains as an employee of Deckers Outdoor can be used to mitigate up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your tax liability in future years.
Conclusion
Preparing your taxes is like taking care of your health. Just as you need to stay on top of your physical well-being to prevent future health issues, you also need to plan ahead and take the necessary steps to ensure that you're not hit with unexpected tax liabilities in the future. By deferring income, accelerating deductions, making charitable contributions, and contributing to your retirement accounts, you can ensure that your financial health is in good shape for the years ahead. Just as you wouldn't skip your annual check-up, you shouldn't overlook the importance of taking care of your taxes.
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1. Weltman, Barbara. '5 Tax Planning Strategies for Your Retirement Income.' Investopedia , 3 Oct. 2022, https://www.investopedia.com/retirement/tax-strategies-your-retirement-income/?utm_source=chatgpt.com .
2. Morgan Stanley. 'Tax-Smart Strategies for Your Retirement.' Morgan Stanley , 2023, https://www.morganstanley.com/articles/tax-strategies-for-retirement?utm_source=chatgpt.com .
3. Vanguard. 'Tax-Efficient Retirement Strategy.' Vanguard , 2023, https://investor.vanguard.com/advice/tax-efficient-retirement-strategy?utm_source=chatgpt.com .
4. Thrivent. '6 Retirement Tax Planning Strategies You Should Know.' Thrivent , 2023, https://www.thrivent.com/insights/taxes/6-retirement-tax-planning-strategies-you-should-know?utm_source=chatgpt.com .
5. New York Life Insurance. 'Tax Planning Strategies for Retirement.' New York Life Insurance , 2023, https://www.newyorklife.com/articles/tax-considerations-in-retirement?utm_source=chatgpt.com .
What is the 401(k) plan offered by Deckers Outdoor?
The 401(k) plan at Deckers Outdoor is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.
How can employees of Deckers Outdoor enroll in the 401(k) plan?
Employees can enroll in the Deckers Outdoor 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.
Does Deckers Outdoor offer a company match for the 401(k) contributions?
Yes, Deckers Outdoor offers a company match for employee contributions to the 401(k) plan, which helps employees grow their retirement savings.
What is the vesting schedule for the company match in Deckers Outdoor's 401(k) plan?
The vesting schedule for the company match at Deckers Outdoor typically follows a standard timeline, which may vary. Employees should refer to the plan documents for specific details.
Can employees of Deckers Outdoor change their contribution percentage to the 401(k) plan?
Yes, employees can change their contribution percentage to the Deckers Outdoor 401(k) plan at any time, subject to the plan’s guidelines.
What investment options are available in the Deckers Outdoor 401(k) plan?
The Deckers Outdoor 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
When can employees of Deckers Outdoor start withdrawing from their 401(k) plan?
Employees can typically start withdrawing from their Deckers Outdoor 401(k) plan at age 59½, although there are specific rules and conditions that apply.
Are loans available against the 401(k) balance at Deckers Outdoor?
Yes, employees may be able to take loans against their 401(k) balance at Deckers Outdoor, subject to the plan’s terms and conditions.
What happens to the 401(k) plan if an employee leaves Deckers Outdoor?
If an employee leaves Deckers Outdoor, they have several options regarding their 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it with Deckers Outdoor.
How does Deckers Outdoor communicate changes to the 401(k) plan?
Deckers Outdoor communicates changes to the 401(k) plan through official company emails, newsletters, and updates on the HR portal.
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