Employers do what they can to foster a sense of ownership in their employees. After all, if you stand to benefit from a company’s success, you’re more likely to do a great job for them, or so the logic goes. So, when you are hired for a job or promoted within your existing company, you…
Executive compensation packages often include a large base salary, variable bonuses, company stock plans. This balancing act layers on top of your already demanding schedule. The interplay between your salary, bonuses, participating in a stock plan, any capital gains and your state can make tax planning a complex task for a busy professional. We work…
For many executives, maximizing retirement savings involves more than simply contributing to a 401(k). While qualified retirement plans remain an important foundation, contribution limits and inflexibility often prevent highly compensated employees from sheltering enough income to fund their retirement. This is where non-qualified deferred compensation (NQDC) plans play an increasingly valuable role. NQDC plans have…
Equity compensation is a powerful tool—but it can also be a tax trap if it is not fully understood. Many executives discover how quickly Non-Qualified Stock Options (NSOs, also referred as NQSOs) trigger taxes consequences when they exercise their options. Without proper planning, it’s easy to face a large and immediate tax bill. By having…
Equity compensation has become a major component of employee compensation and wealth, especially in tech and high-growth companies – such as the recent increase of millionaires from SpaceX’s initial public offering. For many executives, stock options represent a significant potential upside than their base salary. Yet despite their importance, Incentive Stock Options (ISOs) are often…
For many affluent individuals, High Net Worth Financial Planning becomes especially important as retirement age approaches. The focus shifts from building wealth to structuring it thoughtfully for retirement or legacy planning and preparing the next generation. Aligning investment strategy, tax planning, and estate planning to support long-term family and philanthropic goals becomes essential as financial…
One of the common threads of a mobile workforce is that many individuals who leave their jobs are faced with a decision about what to do with their 401(k) account.¹ Individuals have four choices with the 401(k) account they accrued at a previous employer.2 Choice 1: Leave It with Your Previous Employer You may…
Reports of a recent survey of Nvidia employees show approximately 80% of employees are millionaires and 50% are worth over $25 million. Jensen Huang, CEO of Nvidia, recently noted, “I’ve created more billionaires on my management team than any CEO in the world.” We have also seen a number of our clients caught up in…
Yes, you might be able to create a Roth individual retirement account (IRA) if you’re over the income limit. This strategy involves converting a traditional IRA to a Roth IRA. The idea, often referred to as a “backdoor Roth conversion,” is sometimes used by individuals whose incomes exceed the current limits for direct Roth IRA…
Stock based compensation has become increasingly popular because of the advantages to both the companies and the employees. However, many highly compensated individuals find themselves in a situation where they are wealthy on paper – yet unable to protect that wealth. Investors who have spent their lives building their careers at a single company may…