Could the Roth IRA be your greatest opportunity for accumulating tax-free growth? Well, as with most strategic-planning issues, it all depends. Part 1 of this two-part article series looks at the rules and factors to consider in a Roth IRA conversion.
Stock compensation is important for retirement planning. Understand the issues and explore strategies, whether you are planning for retirement, are nearing retirement, or have retired already.
Your ability to pay for college, and ultimately have more money for retirement, may rest on your company's stock plan and related financial planning. Part 1 helps you understand the impact that equity grants have on financial aid eligibility.
John P. Barringer
Many of my clients do not see stock compensation in the bigger picture of retirement savings and withdrawal plans. Considering net worth, age, and company stock plan, I present the client with these core points about stock grants, 401(k) plans, nonqualified deferred compensation, and IRAs.
Once you reach your retirement year, the decision landscape and timeframe change. To avoid unpleasant surprises, understand what will happen to your stock grants and other company benefits so that you can develop appropriate strategies.
Tax planning for retirees can be more challenging that it was during their working years. You need to constantly monitor any options and company stock holdings as part of your overall portfolio. Part 3 looks at special issues that can arise after you retire, including Social Security; coordinating with required minimum distributions for IRAs and your 401(k); moving to another state; and the gifting of stock.
Geoffrey M. Zimmerman
Planning for equity compensation begins with identifying the role stock grants will play in your life, whether for retirement, college funding, or other goals. This article offers points to consider for three different types of investors.
Weighing a Roth IRA conversion is complicated enough, but the complexity can explode when you add in stock option exercises or the vesting of restricted stock. Let's take a look at how this can work in real life through a case study.
Part 2 reviews the basics of gift tax and the tax treatment of stock compensation in your financial planning for higher education.
As college tuition and expenses rise, funding and tax strategies for middle-class families have become more important than ever. Part 3 focuses on methods to minimize capital gains at sale, planning for the kiddie tax and education credits, and strategies your children can use.
Return to top of page
The treatment of unvested restricted stock and RSUs upon death or disability depends on the terms of your stock plan and the specifics of your grant agreement. In its 2013 Stock Plan Design Survey
, the National Association of Stock Plan Professionals observed the following related practices among the companies in its survey group...
Stock options that you hold when you die can be taxed twice...
The grant itself has no impact. The compensation income generated from exercise or vesting can affect...
Retirement is a type of termination of employment...
As long as the student is considered a dependent of the parent for financial-aid purposes, the parent does have to report stock options on line...
You need to review the terms of your company's plan and your grant agreement. In most cases, the options...
While there are some general trends, the treatment of stock options, restricted stock, and other equity awards in divorce is far from similar in all states. In general, the outcome depends on four factors...
Under some stock plans, if you are temporarily disabled and your employment is not terminated, you...
The Employee Retirement Income Security Act (ERISA), whose regulations on tax-qualified retirement plans include rules for employee benefit plans such as 401(k) plans...
401(k) plans are a type of broad-based, tax-qualified retirement plan funded by pre-tax contributions, unlike...
Return to top of page