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Retirement Legislation Awaits Further Action for Deckers Outdoor Employees


Legislation that could benefit Deckers Outdoor employees and retirees with individual retirement accounts (IRAs) and retirement plans such as employees in Deckers Outdoor companies, is currently moving through Congress. The Securing a Strong Retirement Act of 2022 has passed almost unanimously in the House. A similar bill (with some differences), the Enhancing American Retirement Now Act, has been drafted in the Senate but will have to wait until Congress is back in session in November for further consideration. If the Senate passes its bill, the House and the Senate would need to reconcile the two bills, and then each would vote on the reconciled bill.

Some significant provisions in the proposed legislation that may aid in your Deckers Outdoor retirement planning are summarized below.

Contributions
House Senate
The $1,000 IRA catch-up contribution limit for individuals aged 50 and older would be indexed for inflation, starting in 2024. The $1,000 IRA catch-up contribution limit for individuals aged 50 and older would be indexed for inflation, starting in 2023.
For workplace retirement plans such as a 401(k), the catch-up contribution limit would be increased to $10,000 (indexed for inflation) for eligible participants aged 62 to 64, starting in 2024. For workplace retirement plans such as a 401(k), the catch-up contribution limit would be increased to $10,000 (indexed for inflation) for eligible participants aged 60 to 63, starting in 2025.

For SIMPLE plans, the catch-up contribution limit would be increased to $5,000 (indexed for inflation) for eligible participants aged 62 to 64, starting in 2024. For SIMPLE plans, the catch-up contribution limit would be increased to $5,000 (indexed for inflation) for eligible participants aged 60 to 63, starting in 2025. An employer would be able to make matching contributions to a defined contribution plan such as a 401(k) on behalf of an employee who is making qualified student loan payments, starting in 2023. An employer would be able to make matching contributions to a defined contribution plan such as a 401(k) on behalf of an employee who is making qualified student loan payments, starting in 2024.

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Distributions
House Senate
The current starting age of 72 for required minimum distributions (RMDs) from retirement accounts would be increased to age 73 starting in 2023, age 74 starting in 2030, and age 75 starting in 2033. The current starting age of 72 for required minimum distributions (RMDs) from retirement accounts would be increased to age 75 for calendar years after 2031.
The penalty for failing to make an RMD would be reduced from 50% to 25%, starting in 2023. In addition, the penalty would be reduced to 10% if the taxpayer corrects an RMD shortfall and submits a corrected tax return before the earlier of (a) when the IRS demands payment or (b) the end of the second taxable year after the taxable year in which the penalty is imposed. The penalty for failing to make an RMD would be reduced from 50% to 25%, starting in 2023. In addition, the penalty would be reduced to 10% if the taxpayer corrects an RMD shortfall and submits a corrected tax return before the earlier of (a) when the IRS demands payment or (b) the end of the second taxable year after the taxable year in which the penalty is imposed.
Qualified charitable distributions (QCDs) for individuals aged 70½ and older would be expanded to allow a one-time election to be made for a QCD of up to $50,000 (to be adjusted for inflation) to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity. Qualified charitable distributions (QCDs) for individuals aged 70½ and older would be expanded to allow a one-time election to be made for a QCD of up to $50,000 (to be adjusted for inflation) to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity.
An exception to the penalty for early distributions from a retirement plan would be available for up to $10,000 of distributions to a domestic abuse victim after the date of enactment. An exception to the penalty for early distributions from a retirement plan would be available for up to $10,000 of distributions to a domestic abuse victim after the date of enactment.

 

Other
House Senate
SIMPLE and SEP Roth IRAs would be allowed starting in 2023. SIMPLE and SEP Roth IRAs would be allowed starting in 2024.
If a retirement plan permits it, an employee would be able to elect to have employer-matching contributions treated as Roth contributions, starting with contributions made after the date of enactment. If a retirement plan permits it, an employee would be able to elect to have employer-matching contributions treated as Roth contributions, starting with contributions made in 2023.

 

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Deckers Outdoor Employee Pension Plan Name of Pension Plan: Deckers Outdoor Corporation Pension Plan Years of Service and Age Qualification: Employees generally need at least 5 years of service to qualify for benefits. Age qualifications typically align with standard retirement ages (e.g., 65 years old). Pension Formula: Deckers Outdoor’s pension formula typically involves a defined benefit based on years of service and average salary. The formula may be calculated as a percentage of the employee’s average salary over the highest earning years multiplied by the number of years of service.
Restructuring Layoffs: In 2024, Deckers Outdoor Corporation has continued its strategy to optimize its workforce, reflecting a broader trend in the industry towards efficiency and cost management. Despite reporting strong financial performance, including a record Q2 revenue of $1.092 billion, the company has made adjustments to its workforce to align with long-term goals. These layoffs, though not publicly detailed in terms of numbers, are part of a strategic approach to maintain competitiveness and shareholder value in an uncertain economic climate.
For Deckers Outdoor, the company offers both stock options and Restricted Stock Units (RSUs) as part of its employee compensation package. Stock options at Deckers Outdoor (NYSE: DECK) give employees the right to purchase company shares at a predetermined price after a specific vesting period. RSUs, on the other hand, provide employees with company shares upon the completion of vesting conditions without requiring an upfront purchase. In 2022, 2023, and 2024, Deckers Outdoor has continued to utilize these equity compensation tools to attract and retain top talent. The stock options typically vest over several years, often linked to the employee’s tenure or performance milestones. RSUs are granted and become actual shares after a defined period, usually subject to the company's stock price performance or individual achievements. Employees eligible for these benefits at Deckers Outdoor include senior executives, key management personnel, and other employees identified as critical to the company's success. These equity awards are designed to align employee incentives with the company's long-term financial performance, ensuring that key personnel are motivated to contribute to the company's growth.
Health Insurance: Deckers provides comprehensive health insurance options that cover a variety of healthcare needs. This includes medical, dental, and vision coverage. The company also offers Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to help employees manage their healthcare expenses more effectively. Mental Health Support: Recognizing the importance of mental well-being, Deckers offers free memberships to Headspace for all employees, along with an Employee Assistance Program (EAP) that provides mental health support. Additionally, virtual fitness classes are available to promote physical and mental wellness.
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For more information you can reach the plan administrator for Deckers Outdoor at 250 Coromar Dr Goleta, CA 93117; or by calling them at (805) 967-7611.

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