Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Finance - Investments > Non-Actuarial Personal Finance/Investing
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

DW Simpson Global Actuarial & Analytics Recruitment
Download our 2017 Actuarial Salary Survey
now with state-by-state salary information!


Reply
 
Thread Tools Search this Thread Display Modes
  #11  
Old 06-04-2018, 01:52 PM
JoJo JoJo is offline
Member
 
Join Date: Jan 2002
Posts: 1,764
Default

Here's another big factor: what's the state income tax rate now & in the future? If you're eventually moving to a higher income tax state you lose some of the benefit.
Reply With Quote
  #12  
Old 06-05-2018, 10:59 AM
mathmajor's Avatar
mathmajor mathmajor is offline
Member
SOA AAA
 
Join Date: Dec 2010
Location: Nowhere in particular
Studying for Japanese
College: B.S. Applied Math
Favorite beer: La Croix Grapefruit
Posts: 9,617
Default

Quote:
Originally Posted by Kenny View Post
What is it deferred into (i.e. celalta's question)? Is it a qualified trust, a rabbi trust, or just "accounting"? From a tax perspective, what are you allowed to do with the lump sum payment? What is the impact on your ability to contribute to Roth accounts now on the income actually paid to you (i.e. does the reduction in current year income enable you to make (additional) contributions to a Roth IRA)?

If you are in a financial position to start worrying about these things it may be time to hire a qualified adviser (whether it be a CPA or financial adviser) who knows the answers to these types of questions, as well as other ways to minimize your taxes and maximize your income options.
From what I can tell, it's just "accounting" but with an account on your behalf that invests. The only benefit for me at this point would be the psychological component, plus perhaps being able to invest in my Roth again.

However, when I get the "lump sum", once again, no Roth. I don't think I'm retiring from this place (unless I'm here like 30 years, howboudah for a lump sum)
__________________
FSA
Opinions are provided for entertainment purposes only and are no substitute for professional guidance.
Reply With Quote
  #13  
Old 06-05-2018, 12:43 PM
dukelampard's Avatar
dukelampard dukelampard is offline
Member
CAS
 
Join Date: Sep 2006
Studying for FCAS
Posts: 12,057
Default

Quote:
Originally Posted by mathmajor View Post
I'm so glad nobody pointed out that I'm not an executive. lol
You're not?
Reply With Quote
  #14  
Old 06-06-2018, 03:55 PM
Numbers Nerd's Avatar
Numbers Nerd Numbers Nerd is offline
Member
SOA AAA
 
Join Date: Sep 2001
Location: Midwest
College: University of Wisconsin
Favorite beer: Ale, Lager, you name it
Posts: 1,620
Default

To be clear, in order to get the tax benefit from deferring your income, your money has to be at risk. If the company goes bankrupt, you would have to get in line with all the other creditors.
Reply With Quote
  #15  
Old 06-07-2018, 10:40 AM
mathmajor's Avatar
mathmajor mathmajor is offline
Member
SOA AAA
 
Join Date: Dec 2010
Location: Nowhere in particular
Studying for Japanese
College: B.S. Applied Math
Favorite beer: La Croix Grapefruit
Posts: 9,617
Default

Quote:
Originally Posted by dukelampard View Post
You're not?
Only on the AO
__________________
FSA
Opinions are provided for entertainment purposes only and are no substitute for professional guidance.
Reply With Quote
  #16  
Old 06-14-2018, 03:26 PM
Surfohio Surfohio is offline
Member
 
Join Date: Apr 2005
Posts: 2,018
Default

Quote:
Originally Posted by Numbers Nerd View Post
To be clear, in order to get the tax benefit from deferring your income, your money has to be at risk. If the company goes bankrupt, you would have to get in line with all the other creditors.
This is the only downside at my company. It is only offered to more senior management, but you are entitled to it if you leave the company for any reason, except as quoted above. HR people say "at retirement", but that is not really the case.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 11:48 AM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.18680 seconds with 9 queries