Monday, May 20, 2019

The Benefits of a Deferred Compensation Plan

An experienced financial advisor, Robert Gill serves as the president of EPIC Wealth Management, an independent brokerage firm based in New Jersey that offers a range of financial services to individuals, families, and business owners. At the New Jersey office, Robert Gill and his colleagues often discuss deferred compensation plans and other retirement strategies to their clients.

A popular retirement strategy for higher-income earners, deferred compensation plans allow workers to have part of their income set aside in a retirement account. Once in the account, the money grows tax-free, but the income becomes taxable upon withdrawal. Deferred compensation plan offers flexibility for high-earners to postpone their income in certain periods when they belong to the top tax bracket and earn more when they expect to be in the lower tax bracket.

Another benefit of deferred compensation plans is the zero contribution limit set by the IRS, which allows high-income individuals to maximize their retirement compensation. Most deferred compensation plans also offer investment options so individuals can select the right products that will increase their income.

Monday, May 13, 2019

What to Do with a 401k After Leaving a Job

An accomplished financial advisor Robert Gill serves as the president of EPIC Wealth Management, an independent brokerage firm in New Jersey. Robert Gill of New Jersey provides clients with a variety of services, including assistance with estate and retirement planning.

On average, Americans change jobs 11 times throughout their careers according to the Bureau of Labor Statistics. Most companies offer a 401(k) retirement plan to employees but the latter tends to leave their accounts as is when they switch jobs. Leaving the account is the easiest option and is suitable for accounts that have at least $5,000 in them. When accounts have less than $5,000, companies may force the account out by helping employees set up an IRA to host the money instead. For accounts with less than $1,000, companies may issue a check to a former employee instead of keeping the 401(k).

However, leaving a 401(k) is not always the best option. Having multiple 401(k) accounts not only creates confusion come retirement, but it also increases the risk of individuals forgetting about some accounts and ceasing to rebalance or manage them. To prevent this from happening, individuals can roll over their 401(k) to a new employer’s plan and consolidate multiple retirement accounts without taking a tax hit. Furthermore, having a single account makes managing the account easier over time. Moving the money to an Individual Retirement Account (IRA) is another option for the old 401(k) plans. By doing so, individuals increase their investment options while improving their ability to control their accounts.