Don’t Ignore Your Deferred Comp Enrollment Email
If you’re a senior leader at a large company, your deferred compensation enrollment window is probably open right now. Most people close that email without reading it. In this video, the advisor walks through the story of Michael, a 54-year-old tech VP three years from retirement. His deferred comp plan turns out to be one of the most valuable tax decisions of his final working years.
In this video:
- Why high earners get so little tax benefit from their 401(k)
- How the $360,000 compensation cap limits your employer match, and how a restoration match can make it up
- Why deferred comp can’t be rolled into an IRA, and what that means at payout
- Lump sum vs. ten annual installments: how the payout choice changes your tax bill
- Why deferred comp has no 59½ early-withdrawal rule
- The real risks: unsecured creditor status and strict election rules
Radiant Wealth Planning is a fee-only fiduciary firm serving high-net-worth professionals and executives. To talk through how deferred comp fits your plan, contact the advisor in this video: Randa@RadiantWealthPlanning.com
These stories are based on real-life scenarios. Names and details have been changed. This content is for educational purposes only and does not constitute financial, tax, or legal advice.
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Want information about RADIANT Wealth Planning?
Schedule an introductory meeting with Randa or email Randa with any questions: Randa@RadiantWealthPlanning.com
Welcome to our videos where we share tips and advice on all topics that help women meet their financial goals.
About the Author
Randa Hoffman is the owner and financial planner at Radiant Wealth Planning, a fee-only financial planning and investment management firm exclusively for women. She helps ease the uncertainty around retirement, tax planning, and transitioning wealth so that women can live a life they’ve always dreamt of. She holds an MBA and EA and lives in Newport Beach, CA.
