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.