INSIGHTS
How Is a 457(f) Deferred Compensation Plan Taxed, and When Does the Tax Hit?
A 457(f) plan is taxed at vesting, not at payout. The full value of the benefit becomes ordinary income in the year your risk of forfeiture lapses, even if you do not receive a dollar of cash until years later. This single timing rule is the most important and most...
Could you retire at age 50?
Could you retire at age 50? What if you had to? Over ½ of ALL workers could be forced into retirement by age 50, according to ProPublica, and the Urban Institute. No, there’s no way this would happen to you though, right?Clearly, it’s a less competitive...
Deferred Compensation Four-Part Series – Part One: Deferred Compensation Plans 101
Introduction: Deferred compensation plans are complicated, overlooked, underused. Yet, these plans are one of the best opportunities to save A LOT on taxes. Like a nuclear power plant, they’re old, misunderstood, and some only remember the few events when they’ve...
Deferred Compensation Four-Part Series – Part Two: Should I defer my compensation? How do I invest it?
Introduction: Deferred compensation plans are complicated, overlooked, underused. Yet, these plans are one of the best opportunities to save A LOT on taxes. Like a nuclear power plant, they’re old, misunderstood, and some only remember the few events when they’ve...
Deferred Compensation Four-Part Series – Part Three: Deferred Compensation Risks: Change of Control in Acquisition, Bankruptcy, and Irrevocability of Distributions and Investment Options
Introduction: Deferred compensation plans are complicated, overlooked, underused. Yet, these plans are one of the best opportunities to save A LOT on taxes. Like a nuclear power plant, they’re old, misunderstood, and some only remember the few events when they’ve...
Deferred Compensation Four-Part Series – Part Four: Deferred Compensation: Financial Planning Opportunities and Tradeoffs
Introduction: Deferred compensation plans are complicated, overlooked, underused. Yet, these plans are one of the best opportunities to save A LOT on taxes. Like a nuclear power plant, they’re old, misunderstood, and some only remember the few events when they’ve...