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The DIY Financial Planner’s Roadmap: Strategies for Long-Term Planning

By David C. D’Albero II

I often talk with people who believe they have a financial plan, but their “plan” is based more on assumptions and general ideas about their future than a structured strategy. Some people even use elaborate Excel spreadsheets to attempt to forecast what their assets will be worth and what their approximate expenses will be when they retire. These efforts, though commendable, do not equate to a comprehensive financial plan. While it’s true that most people have some form of planning in mind, a true financial plan that effectively prepares for the future involves a deeper, more structured approach.

What Is a Financial Plan?

A personal financial plan is a detailed guide that captures your financial goals, the strategies to pursue them, and the steps required along the way. This plan typically includes projections of your assets, liabilities, cash flow, and taxes to provide guidelines on how and where to save and invest.

In essence, a financial plan acts as a roadmap for managing your finances, helping you aim for stability and growth over the years. But to understand the true value of a professionally developed financial plan, it’s helpful to know exactly what it entails.

Key Components of a Personal Financial Plan

Financial Goals

Short-term goals: Objectives achievable within a year, such as establishing an emergency fund or paying off credit card debt.
Medium-term goals: Targets for the next 1-5 years, like saving for a house down payment or purchasing a car.
Long-term goals: Plans extending beyond five years, including retirement savings and funding for children’s education

Overview of Your Current Financial Situation

Income: A summary of all income streams, including salary, bonuses, and investment returns.
Expenses: Itemized expenses categorized into fixed (such as rent or mortgage and utilities) and variable (like entertainment and dining out) using the needs, wants, and wishes classification system.
Assets: An inventory of all assets, including cash, investments, and property.
Liabilities: A comprehensive list of debts and financial obligations, such as loans, credit card balances, and mortgages.

Budgeting Strategies

Budget Creation: Developing a detailed budget to monitor income versus expenses.
Financial Optimization: Identify opportunities to cut costs and boost savings.

Managing Debt

Debt Reduction: Implement strategies to accelerate the repayment of existing debts. This can include consolidating debt to a lower interest rate personal loan and paying the same amount to accelerate payoff or utilizing an introductory 0% card if you have the means to pay the debt off before the rate period expires.
Debt Prevention: Establish practices to prevent or minimize new debt accumulation. Be careful with store credit cards, as they tend to have the highest interest rates. We generally recommend finding one credit card with the perks you like and using it for monthly expenses. This will make it much easier to track your monthly spending and avoid racking up debt.

Savings & Investment Strategies

Emergency Fund: Establish a robust emergency fund to cover unforeseen expenses. The financial planning industry typically recommends saving around six months’ worth of expenses. However, there is no one-size-fits-all answer. Some people prefer to save a year’s worth of expenses, which is fine as long as it doesn’t compromise other financial goals.
Goal-Specific Savings: Create dedicated savings accounts for specific objectives, such as retirement, children’s education, or purchasing a vacation home.
Investment Planning: Develop investment strategies aligned with your timeline for utilizing the funds. For short-term goals, invest conservatively to avoid potential losses. Nothing would be more disheartening than finding the perfect home and then not being able to put in an offer because the stock market is down. For long-term goals, such as saving for your child’s college fund, take advantage of compounding interest and consider a more aggressive strategy initially, adjusting to conservative investments as you near your goal. This approach helps ensure your funds are available when needed while balancing the risk of short-term losses and the opportunity for long-term growth.
Wealth Growth: To support wealth accumulation, construct a diverse investment portfolio that includes stocks, bonds, mutual funds, alternative investments like private equity and private credit, and rental real estate.

Maximizing Employee Benefits

Retirement Plan Contributions: Maximize the company retirement plan match. Educate yourself on the matching program and understand how you can maximize what you receive. Some plans even match non-qualified savings plans.
Deferred Compensation Usage: Leverage deferred compensation plans for tax efficiency and future savings.
Stock Compensation Strategy: Develop strategies to optimize the benefits from stock compensation, aligning with overall financial goals. You can even utilize your deferred compensation to offset stock compensation if you have done good cashflow planning.

Insurance and Risk Management

Risk Contingency Planning: Strategize for potential risks and uncertainties to safeguard financial stability. Examples of risks like this include premature death of yourself or your spouse, an illness or injury that prevents you from working, or even a layoff that results in an extended lapse in employment.
Evaluation of Insurance Coverages: Evaluate the types of insurance your employer offers through the group benefits program and make sure to compare to options that can be purchased outside of your employer or accessed through your spouse’s benefits.
Policy Acquisition: Obtain essential insurance coverage, including health, life, disability, property, and long-term care. You can use resources like lifehappens.org to help you figure the appropriate amount of coverage.
Pro Tip – Keep Beneficiary Designations Up to Date: Beneficiary designations supersede a will in most cases, so make sure to review all of your beneficiaries to make sure they are still in line with your wishes.

Retirement Planning

Goals: Define retirement objectives such as where will you live, what will you do, and what type of lifestyle you want, and determine how much it will cost on an annual basis.
Accounts: Assess what types of accounts you have access to and whether they will be suitable for your savings plan. Some retirement accounts have limited access to investment choices. This can be especially dangerous for those nearing retirement who have accounts that have limited access to more conservative or income producing investment options. Make sure to evaluate accounts based on their contribution limits as well as their fees and investment choices.
Contributions: Calculate necessary contributions to meet retirement objectives, then determine necessary savings amounts and locations.

Tax Optimization

Tax Liability Assessment: Assess your current tax liabilities and identify which income sources generate the most taxes. Remember, not all income is taxed at the same rate.
Tax Reduction Strategies: Implement strategies to reduce taxes through deductions, credits, and tax-advantaged accounts. Evaluate the tools available to lower your tax liability, such as pre-tax 401(k) contributions, IRA savings (if you qualify), and deferred compensation. Also, review non-retirement investments to avoid unnecessary taxes. Properly managing funds can help minimize or even largely eliminate interest and capital gains taxes without sacrificing returns.

Estate Management

Will and Trusts: Create or revise wills and establish trusts to manage and transfer assets effectively and efficiently,aiming to minimize complications for beneficiaries. Consult with an attorney who understands the rules in your state of residence.
Tax and Legal Planning: Plan for potential estate taxes and understand legal considerations to ensure smooth asset transfer.

The Value of Professional Financial Planning

If it seems like a lot of plates to spin, it is. Attempting to DIY your financial plan with financial models in Excel is not only time-consuming but also risky. This is especially true when planning for retirement when there are no second chances.

Professional financial planners use sophisticated software to create projections and make recommendations, enhancing your chances of achieving your financial goals. They can also simulate various risks you could face down the line, providing a significant advantage by allowing you to prepare and adjust today, thus preventing potential financial crises in the future.

When it comes to DIY financial planning versus working with an experienced financial planner, I often put it this way, “I could represent myself in court, but I stand a better chance of winning if I bring an experienced attorney with me.”

Adapting and Refining Your Financial Plan

A mentor once told me, “Every financial plan ever written is wrong.” This wasn’t a critique of financial planning but a recognition that life is dynamic—goals shift, incomes fluctuate, liabilities change, and financial regulations like contribution limits and tax brackets are updated. This makes financial planning a continual process, not a one-time event.

The initial financial plan is crucial for setting your trajectory, but true financial optimization requires regular adjustments. If you’re working with a financial planner, it’s advisable to meet at least twice a year to review and refine your strategy.

When choosing a financial planner, selecting someone whose expertise aligns with your specific needs and specializes in working with people of similar background and net worth is important. Just as you wouldn’t hire a traffic court attorney to handle a real estate closing or consult a foot surgeon about heart issues, choosing a financial planner experienced in managing scenarios similar to yours can make a significant difference in effectively managing your wealth.

Are You Ready to Work with a Financial Advisor?

If you’re just starting out, you might be able to handle your own financial planning for now. There are plenty of great resources online if you know where to look (hint: check out www.stratacapital.co).

If you’re managing your own financial planning, here are two key pieces of advice:

Don’t blindly follow what your friends are doing just because you don’t know what to do. It’s common to see young professionals investing in the same funds as their older coworkers without fully understanding the implications.
Don’t hesitate to admit when you don’t understand something, and seek professional advice. There are many trustworthy and knowledgeable financial planners who can guide you in the right direction.

If you think it might be time to work with a professional financial advisor to begin your comprehensive financial planning process, contact us for a consultation.

Strata Capital is a wealth management firm serving corporate executives, professionals, and entrepreneurs in the New York Tri-State Area, focusing on corporate benefits and executive compensation. Co-founded by David D’Albero and Carmine Coppola, the firm specializes in making the complex simple to ensure clients feel confident in their financial decisions. They can be reached by phone at (212) 367-2855, via email at carmine@stratacapital.co, or by visiting their website at stratacapital.co.

Cornerstone Planning Group, Inc., (“CSPG”) is an SEC registered investment advisory firm. The information contained herein should not be construed as personalized investment advice and should not be considered as a solicitation for investment advisory service. The information (e.g., tax ) provided is believed to be accurate however CSPG does not guarantee or otherwise warrant such information. For more information regarding CSPG you can refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) and review our Form ADV Brochure and other disclosures.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommenincome-producingindividual.

The Ultimate Guide to Cash Balance Pensions After Leaving Your Job

Wondering what to do with that retirement account from your previous employer? If you’ve worked in Corporate America, there’s a good chance this account is a cash balance pension plan. Unlike traditional pensions, these plans often provide more options when you leave a company.

What is a Cash Balance Pension Plan?

A cash balance pension plan is a retirement plan where the company contributes on behalf of its employees. Unlike a 401(k), employees do not contribute to these plans. Think of it as an additional 401(k) match from your employer. The company deposits funds into the plan based on your compensation, and rather than being invested, the balance typically grows at a crediting rate based on interest rates.

When you leave the company, your plan balance usually continues to earn interest credits, but the company stops making contributions.

What to Do with Your Plan After Leaving the Company

If you’ve left your job and are wondering what to do with your old cash balance pension plan, the answer will depend on your unique situation. Generally, these plans offer four different options, which can vary based on your former employer.

Option 1: Annuitize the cash balance pension, turning it into a monthly income stream. This works similarly to creating your own “traditional pension.”

Option 2: Roll the balance over into an IRA. This will allow you to continue investing the funds how you’d like.

Option 3: Leave the money in the plan. Some companies allow this, and some do not. Most companies have an age at which you MUST initiate another option, usually 65.

Option 4: Take a lump sum distribution. It’s important to note the entire balance would be taxed as ordinary income.

Taking a lump sum distribution is rarely the best choice unless your plan balance is relatively small. Therefore, we’ll focus only on the other options for the rest of this article.

We’ll walk you through each option and the scenarios in which it might make sense. This will give you a complete understanding to help guide your decision-making process. Finally, we’ll provide a list of steps to determine which option may be most favorable for your situation.

Option 1: Annuitizing the Plan to Create an Income Stream

Think of this option as trading in the balance of your cash balance plan for a “traditional pension.” Company plans typically offer multiple payout options, such as single or joint life.

If your goal is to create additional income in retirement, this may be the right option for you, especially if you are retiring now and need the income immediately. However, this option is not ideal if you prefer flexibility, liquidity, and control of your assets. It may also be less appealing if you are still working and are far from retirement.

What are the advantages of annuitizing my cash balance pension?

It allows you to generate an income stream to supplement your other retirement income sources.
The joint payout option ensures the income stream lasts for both your and your spouse’s lives, hedging against longevity and premature death risks.
The investment risk is transferred to the company, meaning you do not have to manage the assets; you just receive the income.

What are the disadvantages of annuitizing my cash balance pension?

You’re trading an asset for an income stream. You lose liquidity, so if you need the cash sooner, you can’t access it.
The income stream ends with you (or your spouse if they outlive you and you’ve chosen the joint option). It will not be passed along to your heirs or be part of your estate.
There is the potential opportunity cost of not being able to invest the balance elsewhere.

Important Note: If you determine that you want more guaranteed income and are planning on annuitizing your cash balance pension, it’s always advisable to price out other income-producing investments (such as outside annuities) to compare income amounts. You might find a higher income rate at another insurance company.

Option 2: Rolling Over Your Cash Balance Pension to an IRA

Just like you can roll over your 401(k), you can also roll over your cash balance pension into an IRA. You can transfer it to an existing IRA or set up a new one.

What are the advantages of rolling over my cash balance pension?

You have complete control over how funds are invested, allowing you to align your investment strategy with your overall financial plan.
You maintain the asset, which can now be passed down to your heirs and your estate.
If you decide you prefer a guaranteed income stream later, you can always purchase an annuity in the future.
Distributions are easier. Most cash balance plans do not permit partial distributions, but rolling over to an IRA gives you full control over distributions, making it easier to receive your money (e.g., direct deposit vs. a mailed check).
This option offers the most flexibility.

What are the disadvantages of rolling over my cash balance pension?

You bear the investment risk, so if the investment decreases in value, so does your asset.
You no longer receive the interest credit you would have if you left the money in the plan.
You can no longer annuitize through your company’s plan (see Option 1). However, you still have the option to annuitize through another insurance company at a later date if you choose to do so.

Option 3: Leave the Money in the Cash Balance Plan

Most companies allow you to leave the money inside the cash balance plan even after you’ve left the firm. However, there is usually an age limit by which you must choose another option, typically age 65.

If you leave the money in the plan, you will continue to earn interest credits. The crediting rate is usually based on a treasury or corporate bond rate published by the IRS. Be sure to check your plan’s Summary Plan Description for more details.

What are the advantages of leaving money inside my cash balance pension plan?

Ideal for conservative investors who do not need additional income right now.
Beneficial if you are satisfied with the interest rate it’s paying, especially if it’s higher than what you could get elsewhere.
If you’re close to retirement, it keeps the annuitized income option available for later use.

What are the disadvantages of leaving my money inside my cash balance pension plan?

Potential opportunity cost for aggressive investors or those far from retirement who might benefit from investing in riskier assets.
There is a time limit on how long you can keep the funds in the plan.
Facing limited liquidity compared to other investments, making it harder to access funds quickly.
Many plans do not allow for partial distributions.

Steps to Evaluate What Cash Balance Pension Option is Best for You

This decision should not be made in isolation. It’s crucial to assess how your choice integrates with your overall financial plan. Since the decision is permanent, be thorough in your evaluation. Here are the steps you can take to start the process:

Step 1: Determine Your Retirement Status

The first step is to consider whether you are retiring soon or planning to continue working. If you’re retiring, you’ll need immediate income; if you’re still working, you have more time before requiring retirement income. This distinction will also impact the Internal Rate of Return (IRR) calculations in later steps.

Step 2: Assess Your Guaranteed Income Sources

Identify your sources of guaranteed income in retirement, such as Social Security, pensions, and annuities.

Step 3: Estimate Your Retirement Expenses

Calculate your anticipated expenses in retirement. Focus on essential needs like housing and food before considering discretionary spending like vacations and entertainment.

Step 4: Identify Any Income Gaps

Compare your estimated expenses with your guaranteed income sources to identify any shortfalls. If there is a gap, consider whether annuitizing the cash balance pension can fill it. If there isn’t a gap, annuitizing might not be necessary.

Step 5: Calculate the Internal Rate of Return (IRR)

Use the IRR formula in Excel or have your financial advisor run the analysis for you. The IRR will give you a number to compare against alternative investment strategies. (Tip: If your advisor can’t run this analysis, it might be time to find a new one!)

Step 6: Compare IRR to Investment Strategies

Always compare your cash balance pension annuitization IRR with other investment options. Annuitizing the pension might provide a steady income stream, but it’s essential to evaluate whether it’s the best choice compared to other investment strategies.

Step 7: Run Financial Forecasts for Each Option

This step is crucial. Run separate financial forecasts for each option to see how they affect your long-term financial future. Compare these scenarios to understand the impact on your overall financial health and legacy planning.

By following these steps, you’ll gain a better understanding of which option makes the most sense for your unique situation. Always run scenarios against your overarching financial plan to ensure you make the best decision for your financial future.

Final Thoughts on Managing Your Cash Balance Pension

Deciding what to do with your old cash balance pension plan is a significant choice that can impact your financial future. It’s essential to consider how each option fits into your overall financial strategy and long-term goals. Whether you choose to annuitize, roll over into an IRA, or leave the funds in the plan, understanding the advantages and disadvantages of each option is crucial.

By thoroughly evaluating your situation and running detailed forecasts, you can make an informed decision that aligns with your retirement goals and financial needs. Remember, this decision is permanent, so take the time to explore all your options carefully.

If you’d like assistance exploring the best option for your old cash balance pension plan, we’re here to help. Schedule a free consultation with us today. Together, we’ll analyze your unique situation and guide you toward making an informed decision tailored to your needs.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

What Should I Do With My PRA When I Leave MetLife?

By Carmine Coppola

The MetLife Personal Retirement Account (PRA) is a cash balance pension, an additional retirement account that complements the discretionary 401(k) plans most employers offer today. This plan allows employers to reward employees with extra retirement savings on a tax-deferred basis. Though cash balance pensions do not allow for you to contribute to the plan yourself or choose how to invest the balance, it’s important to understand what options you do have when you leave or retire from the company, including understanding how to manage distributions when the time arrives. (For more information on how the PRA works, visit our MetLife page to get yourself up to speed and prepare for making a smart decision.)

Evaluating Your PRA Options When Leaving MetLife

If you’re moving onto the next chapter of your career or life soon, you’re probably already asking yourself the big question: What do I do with my PRA when I leave MetLife?

The answer depends on your specific circumstances. The PRA offers four different options when you separate from MetLife:

Leave the money in the plan, although you can only do this until age 65.
Annuitize the PRA into an income stream – almost like purchasing a traditional pension.
Roll the balance over into an IRA, allowing you to invest the funds however you’d like.
Take a lump sum distribution, noting that the entire balance would be taxable to you.

Hint: Option 4 is rarely the best option (unless your balance is particularly small), so we’ll focus on the other three potential choices in this piece.

Let’s start by reviewing each option and the scenarios in which you might use it. Then, I’ll provide you with a list of steps to help you determine which option is most favorable for your situation.

First, we’ll explore each option’s nuances and the contexts in which they are most advantageous so you have a comprehensive understanding to guide your decision-making process effectively.

Option 1: Leaving Money In The Plan

MetLife only allows you to leave your balance in the PRA while employed or until you turn 65, whichever occurs later. So, this option is not available if you’re retiring or leaving the company after age 65. However, if you’re under 65, this could be a solution to consider.

Your PRA will receive monthly interest credits based on the declared annual crediting rate. This rate is based on the 30-year treasury bond rate for November of the prior year. You can reference your benefits portal to find the current year’s crediting rate.

If you’re considering leaving money in the plan, you’ll find it helpful to compare how this would fit into your overall investment portfolio and look at the alternatives. Remember, all investments have tradeoffs, so working with your investment advisor is important to determine which option aligns with your financial plan.

Who does this option work well for?

Someone who is a conservative investor and does not need additional income.
Someone who is a conservative investor and finds this rate to be higher than rates they are currently receiving in other vehicles.
Someone who is close to retirement and may want to tap into the guaranteed income option at a later date.

Who does this not work well for?

Someone who is a more aggressive investor or nowhere near retirement.
Someone who is not anticipating they will need additional income.

In my experience, it’s uncommon for people to leave money in their PRA unless they plan to annuitize it later.

Option 2: Annuitizing the Plan to Create an Income Stream

This option essentially amounts to purchasing a “traditional pension” for yourself using the cash balance of your PRA. MetLife has multiple annuity options, both single-life and joint-life.

If you’re looking for additional income in retirement, going this route may work well for you. If you’re retiring and know you’ll need an income stream immediately, this could help you meet that goal. On the other hand, if you prefer liquidity and flexibility with your assets, it might not be the option that aligns with your needs. And if you’re far from retirement and still working, it probably won’t appeal to you.

What are the advantages of annuitizing my PRA?

It allows you to create a guaranteed income stream to supplement your other retirement income sources.
It offers the option to choose a joint payout with your spouse, allowing the income stream to continue for whichever person lives longer.
It transfers the investment risk to MetLife.

What are the disadvantages of annuitizing my PRA?

The asset loses liquidity, so you can’t access cash if you need it sooner.
If you choose the joint option, the income stream dies with you or the last surviving spouse, meaning it will not be passed along to your heirs or be part of your estate.
Choosing this option means potentially facing the opportunity cost of not being able to invest the cash balance elsewhere.

Important Note: If you determine that you want more guaranteed income and are planning on annuitize the PRA, it’s always advisable to price out other income-producing investments as well, such as outside annuities, to compare income amounts. You might find a higher income rate at another insurance company.

Option 3: Roll Over the PRA into an IRA

This option is simple. It involves taking the cash balance of your pension and rolling it into an IRA you already have or establishing a new IRA account to roll it into.

What are the advantages of rolling over my PRA?

It gives you complete control over how funds are invested, allowing you to align your investment strategy with your overall financial plan.
It enables you to maintain the asset, which can now be passed down to your heirs and your estate.
If you change your mind and decide you’d rather have a guaranteed income stream, you can always purchase an annuity at some point in the future.
It offers the most flexibility out of all the options.

What are the disadvantages of rolling over my PRA?

You bear the investment risk, so if the market goes down, so does the value of the asset.
You no longer receive the interest credit.
You can no longer annuitize through the MetLife pension (see Option 1). But you will still have the option to annuitize through another insurance company at a later date if you choose to do so.

Steps for Evaluating What Option Is Best for You

Let me start by saying that determining what to do with your PRA is not a decision that should be made in a vacuum. It’s something that should be considered in tandem with the rest of your financial plan. Here are the steps you can take to start the evaluation process:

Step 1: Are You Retiring or Continuing to Work?

The answer to this question will play an important factor in determining what the goal of money is. Typically, if you’re retiring, you have an immediate income need, and if you’re continuing to work, you have time before you need to start taking income. This consideration will also affect the IRR calculations in Step 5.

Step 2: What are Your Guaranteed Income Sources in Retirement?

We’re only talking about guaranteed income sources here — Social Security, pensions, annuities, etc.

Step 3: What Are Your Anticipated Expenses in Retirement?

Create an estimate of your retirement expenses. For the most helpful figure, I would focus first on the needs (home, food, etc.) versus the wants (vacations, entertainment, etc.).

Step 4: Identify the Income Gap

See how much of your anticipated expenses will be covered by your current guaranteed income sources. If there is a gap, do the math to determine whether or not annuitizing the PRA will fill the gap. If there is no gap, annuitizing probably does not make sense.

Step 5: Calculate the Internal Rate of Return (IRR) of Annuitizing Your PRA

You can run this using the IRR formula in Microsoft Excel OR have your financial advisor or planner run the analysis for you. (Pro tip: If they can’t run it for you, it’s time to start looking for a new advisor!) The IRR will give you a number that you can compare to an alternative investment strategy.

Step 6: Compare PRA IRR to Investment Strategy

It’s crucial to always compare any available financial option to an alternative. In our experience, the annuitization of the PRA is often a sound income stream. However, it’s not always the most favorable investment choice when considering its IRR compared to an alternative.

Keep in mind that the alternative investment strategy can also be another income-generating investment. So, even if you want more income, it’s important to compare all options before deciding to annuitize the PRA.

Step 7: Run a Financial Forecast for Each Scenario

This is the most important step. Run each option as a separate forecast and compare the possibilities. This will provide a long-term view of how each option may affect your financial future. You could find that annuitizing the PRA fills the income gap but leaves you with fewer assets to pass along to your children, or vice versa.

If you want to know what to do with your PRA when you leave MetLife, walking through these seven steps should help you understand which option makes the most sense for your specific circumstances. When making a final decision, you should run all the scenarios against your overarching financial plan. Your situation is unique and should be treated as such.

Empowering Your Future: Making Informed Decisions with Your PRA Post-MetLife

Navigating the options for handling your Personal Retirement Account (PRA) after leaving MetLife requires thoughtful consideration and strategic planning. You’ll need to weigh the benefits and drawbacks of each potential choice against your unique financial goals, needs, resources, and preferences. By following the outlined steps and seeking guidance from an experienced financial advisor, you can confidently make an informed and appropriate decision.

Schedule a free consultation with us today, and we’ll help you choose a path that aligns with your long-term retirement goals, risk tolerance, and overall financial plan and vision for the future.

This represents the views and opinions of Strata Capital and has not been reviewed or endorsed by MetLife or any of its employees. MetLife is not affiliated with Strata Capital and has not endorsed or approved their services.

Cornerstone Planning Group, Inc., (“CSPG”) is an SEC-registered investment advisory firm. The information contained herein should not be construed as personalized investment advice and should not be considered as a solicitation for investment advisory service. The information (e.g., tax ) provided is believed to be accurate however CSPG does not guarantee or otherwise warrant such information. For more information regarding CSPG you can refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) and review our Form ADV Brochure and other disclosures.

The information and opinions provided in this material are for general informational purposes only and should not be considered as tax, financial, investment, or legal advice. The information is not intended to replace professional advice from qualified professionals in your jurisdiction.

Tax laws and regulations are complex and subject to change, and their application can vary widely based on the specific facts and circumstances involved. Any tax information or advice in this article is not intended to be, and should not be, used as a substitute for specific tax advice from a qualified tax professional.

Investment advice in this article is based on the general principles of finance and investing and may not be suitable for all individuals or circumstances. Investments can go up or down in value, and there is always the potential of losing money when you invest. Before making any investment decisions, you should consult with a qualified financial professional who is familiar with your individual financial situation, objectives, and risk tolerance.

Unraveling the Mystery: 8 Reasons You Might Owe Money on Your Taxes

Are you among the millions of taxpayers who dread tax season for fear that you may owe money to Uncle Sam? While receiving a refund is often seen as a financial win, owing money is usually considered an unwelcome surprise. However, understanding what led to your tax bill can help you optimize your finances to make tax time a little less scary. Let’s explore some of the most common reasons why you might find yourself owing money to the IRS.

Understanding US Tax Rates

To get started, let’s look at current tax rates and how the US tax system works.

The US employs a progressive tax model, meaning as your income increases, so does the tax rate applied to your earnings. The chart below illustrates the progressive nature of the US federal income tax system, where higher rates apply to higher income levels. For example, if you are filing single and your taxable income falls within the range of $47,150 to $100,525, you would pay 10% on the first $11,600 of income, 12% on the portion of income between $11,600 and $47,150, and 22% on the remaining income within that range.

2024 Tax Brackets

Tax Bracket

In a progressive tax system, your tax rate increases with your income. The more you earn, the higher your tax rate, with income categorized into brackets to determine these rates. This structure aims to tax individuals based on their ability to pay, meaning lower-income earners contribute a smaller portion of their income than higher earners.

Marginal Tax Rate

Your marginal tax rate is applied to your highest income dollar. It’s the highest tax rate you pay on any part of your income. Your marginal tax rate increases as you earn more income and move into higher tax brackets. For example, if you earn $50,000, your first $10,000 may be taxed at 10%, the next $20,000 at 15%, and the remaining $20,000 at 20%. While your highest, or marginal, tax rate is 20%, only the last portion of your income is taxed at this rate.

Effective Tax Rate

Your effective tax rate is the actual percentage of your income paid in taxes, considering all your deductions, credits, and exemptions. It’s an accurate gauge of your tax burden, offering a more precise picture than just your tax bracket’s rate. Imagine you earn $50,000. After deductions and exemptions, your taxable income is $40,000. If you paid $6,000 in taxes, your effective tax rate would be 15% ($6,000 divided by $40,000), indicating the overall percentage of your taxable income that went to taxes.

Average Tax Rate

The average tax rate is the total amount of taxes paid divided by taxable income, which measures the overall tax burden as a percentage of income. It represents the average rate at which income is taxed and is distinct from the effective tax rate, which considers adjustments such as deductions and credits. If your total income is $50,000 and your total tax paid is $6,000, your average tax rate is 12% ($6,000 divided by $50,000). This rate reflects the percentage of your total income that went towards taxes.

Reasons You Could Owe Taxes

Managing your tax obligation can become complex, especially when faced with scenarios that aren’t straightforward. Many taxpayers find themselves in unique situations that require a deeper understanding of the tax code to avoid unexpected liabilities. Below, we discuss eight common reasons you might owe more taxes than anticipated and share insights on better strategizing for the future.

Working in Another State

If your job takes you across state lines, navigating taxes can get tricky and might increase the amount you owe. States each set their own tax rules and rates, so if you work and live in different states, you’re likely facing unique tax requirements in each. This situation often necessitates filing tax returns in multiple states, potentially increasing your overall tax liability. This scenario is quite common for those living in one state but working in another.

Thankfully, many states offer tax credits or have reciprocal agreements with neighboring states to prevent individuals who work across state lines from paying taxes twice on the same income. But if there is no reciprocity agreement between states or available tax credits, you could find yourself taxed by both states, adding to your tax obligations.

Insufficient Withholding

The information you provide on your Form W-4 determines tax withholdings from your paycheck. If too little was withheld throughout the year (maybe you claimed the wrong number of dependents or your financial situation changed), you could find yourself with a tax bill at filing time.

Multiple Income Streams

If you have more than one source of income, such as freelance work, rental properties, or investments, the taxes withheld from your primary job may fall short of your combined tax obligation. Each income source could have its own tax implications, leading to a shortfall when it’s time to settle up with the IRS.

Changes in Personal Circumstances

Significant life events, such as marriage, divorce, changes in employment status, the birth of children, or even children reaching adulthood can impact your tax liability. Failing to adjust your withholding or account for these changes can result in owing taxes at the end of the year.

Tax Credits and Deductions

While tax credits and deductions can reduce your taxable income and overall tax liability, claiming too many allowances or overestimating your deductions can lead to owing taxes. Additionally, changes in tax laws or the phase-out of certain credits or deductions can catch taxpayers off guard.

Bonuses and Windfalls

Extra income, such as bonuses, commissions, inheritances, or lottery winnings, can nudge you into a higher tax bracket, resulting in a larger tax bill than anticipated. Since these sources of income are often taxed differently than regular wages, it’s essential to plan accordingly to avoid surprises come tax time. Let your tax professional know if you receive any unexpected windfalls so they can advise you on how much you should set aside for the IRS.

It’s important to note that bonuses are not taxed at a higher rate than other income; however, they may be subject to different tax withholding rules, which can sometimes make it seem like they are taxed at a higher rate. The IRS typically considers bonuses to be supplemental income and subjects them to a flat withholding rate for federal income tax rather than your usual withholding rate. This flat rate is often higher than the regular tax rate for your salary or wages.

Self-Employment Taxes

If you’re self-employed or working as an independent contractor, you’re responsible for paying income and self-employment taxes (i.e., Social Security and Medicare taxes). Unlike traditional employees, whose employers contribute half of these taxes, self-employed individuals are responsible for the full amount. Failure to set aside enough money to cover self-employment taxes throughout the year can lead to a hefty tax bill. A competent tax advisor will be able to guide you on what you should be sending to the IRS quarterly.

Underpayment Penalties

In addition to owing taxes, if you didn’t pay enough throughout the year (either through withholding or estimated tax payments), you may also face underpayment penalties, which add to your tax bill. To avoid added penalties, work with your tax advisor and financial advisor on proactively forecasting gains and paying estimated taxes quarterly.

Empower Your Tax Planning

Navigating the complexities of the tax system can be daunting, but being aware of these common reasons for owing money can help you better prepare and manage your finances throughout the year. Consulting with a financial advisor or tax professional can help you make informed decisions to take advantage of all available tax-saving opportunities. With proper planning and understanding, you can minimize surprises and take control of your tax situation with confidence.

Ready to optimize your tax strategies? Schedule a free consultation with us today, and let’s explore how you can maximize your tax-saving opportunities and secure a brighter financial future.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

4 Reasons to Tap into Your MetLife Leadership Deferred Compensation Plan Sooner Than Later

By Carmine Coppola

MetLife offers a lucrative benefits package; it’s one of the biggest advantages of working for the company. When it comes to retirement savings opportunities, especially, your available options are remarkably better than what the majority of employers offer. But many MetLife employees are unfamiliar with a plan that sets their benefits apart from most: the MetLife Leadership Deferred Compensation Plan.

This plan allows eligible employees at salary grades 10S to 13S, such as Assistant Vice Presidents and MetLife company officers, earning over $345,000 in total compensation for 2024 (determined by the IRS and may change yearly), to defer salary or bonus payments.

You’re probably already familiar with the 401(k), Personal Retirement Account (PRA), and traditional pension (for the tenured folks) and how they can benefit your financial well-being. The MetLife Leadership Deferred Compensation Plan is a lesser-known and far more flexible tool. It is a nonqualified deferred compensation plan (NQDC), also known as an elective deferral or supplemental executive retirement plan.

In this article we’ll give you a brief overview of how the plan works and then share four reasons why you need to begin utilizing it to your advantage, starting today.

What Makes the MetLife Leadership Deferred Compensation Plan Different?

There’s far more to this plan than you might think.

The MetLife Leadership Deferred Compensation Plan allows you to put away and invest an uncapped amount each year, reducing your taxable income by the amount you defer. You can also enjoy tax-deferred investment growth until distribution, with flexibility on when you start receiving distributions — at retirement or sooner if you want to align payouts with other earlier financial goals. And distributions are taxed at ordinary income tax rates, so imagine how you can use this strategically alongside your tax planning.

These deferred compensation plans also allow you to pick investments and can even qualify for a company match; consider this a raise! But unlike a 401(k) plan, a nonqualified deferred compensation plan places no limits on your contributions, no age restrictions on withdrawals, and no required minimum distributions.

So, how does this work?

How Deferments Work

MetLife permits you to defer your base salary, Annual Variable Incentive Compensation Plan or successor annual cash bonus plan or program (AVIP), sales incentive compensation, and/or performance shares. Minimum deferrals are 5% and max limits are 75% of your base salary with AVIP and Sales Incentive Performance Shares at 100%.

How the Company Match Works

Not only does participation allow for taking advantage of the tax benefit, but compensation deferrals are also eligible for company contributions through the MetLife Auxiliary Match Plan. The match is the same as the 401(k), with a maximum company match of 4% of compensation. For more details on the Auxiliary Match, you can visit our MetLife page where we give an overview of how that works.

How Distributions Work

When making contributions to the NQDC, you choose when and how distributions happen — meaning, you can tie distribution to a specific date or event, like a retirement date or layoff. And you also choose how the payment is received: lump sum or up to 15 annual installments. Again, distributions are taxed at ordinary income tax rates.

How Investing Works

NQDC contributions are not actually invested into funds in the way your 401(k) investments are. Instead, you choose which tracking funds to track and the plan balance will adjust according to the performance of those funds. MetLife currently offers 11 different tracking funds, each of which mirrors the performance of an index or actual fund. (Reference your guide to see what funds are available.)

Key Considerations in MetLife Leadership Deferred Compensation Planning

It’s gratifying to know you work for a solid employer who values your contributions and wants you to stick around. However, you have some critical decisions when you elect to participate in a deferred compensation plan. Participation typically involves adhering to a designated enrollment period and establishing a written agreement with MetLife.

This plan agreement outlines crucial details, such as the amount of income to be deferred, the deferral period or schedule of distributions, and your investment choices. Once elections are made, they can be difficult or impossible to change, so you don’t want to go into this lightly.

With so many possibilities and so much at stake, deferred comp plans can feel overly complex and even intimidating. The best way to start thinking about your strategic approach is to break it down into three main components:

What do you want to use the deferred compensation for?
How much of your salary or bonus will you defer each year?
When do distributions from the plan start, and how long do they last?

Before moving forward, understanding your options and looking at the big picture is vital

We will explore four situations in which you can confidently and strategically leverage your MetLife Leadership Deferred Compensation Plan.

Strategy 1: Tax Reduction

Deferrals into your MetLife Leadership Deferred Compensation Plan lower your taxable income in the year you defer income. So, if your total compensation was $400,000 and you decided to defer $25,000, your annual income would be $375,000.

A common strategy we use is offsetting other income, such as stock compensation or inherited IRA withdrawals, with deferred comp.

Let’s look at an example.

Gianna’s salary and bonus are $550,000 per year. She also receives stock compensation in the form of RSUs (restricted stock units), which, on average, is about $50,000 per year. RSUs are taxed as ordinary income when they vest, regardless of whether you sell the stock. She inherited an IRA from her father and is currently withdrawing $25,000 per year, which will continue for the next several years. This puts her total income at $625,000, placing her in the highest federal tax bracket. Keeping tax calculations simple for this example, Gianni would pay $187,636 in federal taxes. Making her effective tax rate 30.7%

Gianna does not need the additional $75,000 in income from the RSUs and IRA distribution, so she is losing a ton of money to taxes on income she will not be using right now. What can she do?

Because MetLife offers her a deferred compensation plan, she decides to defer $75,000 of her bonus each year. This will offset the amount she receives from the stock compensation and inherited IRA distributions.

Why would she do this? Look at the chart below.

As you can see, Gianna’s current plan puts her just over the threshold for the highest tax bracket. Deferring $75,000 of her compensation allows Gianna to reduce her taxable income to $550,000, keeping her just beneath the highest tax bracket. And her federal tax bill would be reduced to $160,690, saving her about $27,000 in federal taxes! This strategy allows her to maintain the same lifestyle spending, while the $75,000 she defers can be invested for retirement inside her NQDC plan.

If she continues this over the next ten years, that is an additional $750,000 in retirement savings, not including any investment growth. She can do this without spending any less or adjusting her lifestyle now. She’ll also realize the potential advantage of paying less in taxes because when she takes the distributions, she will be retired and in a lower tax bracket.

Strategy 2: Saving for Specific Goals

This strategy is simple and effective. All it takes is aligning your deferred compensation distributions with a specific goal in mind. This goal can be anything from your children’s education expenses to a down payment on a vacation home. Let’s look at how this concept works.

Bill and Laura have ambitious plans for their future. They want to make sure college expenses are covered for both children and purchase their dream vacation home. Their son will start college in eight years and their daughter in ten years, and they’d like to purchase their vacation home before the kids start college.

Cash flow is great for Bill and Laura right now. Bill has a deferred compensation plan through MetLife, and he developed a strategy to defer his salary over the next six years to fund the couple’s goals.

A common component of deferred compensation plans is the ability to have multiple accounts within the plan. Each account can have its own investment strategy and distribution schedule. When you make your elections, you decide which account you will be saving into. Bill’s plan at MetLife allows him to save into three different accounts inside his deferred comp plan.

As you can see from the chart, Bill created three accounts, each with a specific goal in mind. Account #1 will begin paying out in Year 8, over four years to pay for his son’s college. Account #2 will begin paying out in Year 10, over four years to pay for his daughter’s college. Account #3 will be paid out in a lump sum in Year 7 to cover the down payment on the vacation home.

Bill decides that deferring $50,000 per year into the accounts over the next six years will allow him to achieve his financial goals. Looking at the yellow boxes on the schedule, you can see that when distributions are made from the plan, they are each aligned with specific goals.

It’s important to note that we did not account for any investment growth in this example. This is something you should consider when determining if this strategy is right for you. Also, deferred compensation distributions are taxed as ordinary income, so being aware of what your total taxable income is likely to be at the time of distribution is also crucial.

Strategy 3: Filling the Income Gap until Social Security

If you decide that you want to retire “early” or before age 65, the question you might be asking is, “Where will my income come from?” Most people rely on Social Security to supplement their income in retirement. But how does that work if you retire earlier than you would like to begin drawing SSI or before you become eligible?

John and Sara are a married couple who are both 60 years old. They plan to retire when they are 62 and would like to wait until 67 to take Social Security. John has a pension that will start when he retires at age 62.

This is what their projected income looks like right now:

You can see that John and Sara will have an income gap of $60,000 for the five years before Social Security kicks in. They will have to pull this from retirement accounts or other investments, which can lead to depleting assets sooner than anticipated.

Let’s examine an alternate scenario in which Sara utilizes her deferred compensation plan through MetLife. In this example, Sara defers 50% of her yearly bonus until retirement. The deferred compensation plan is to be distributed over five years, starting when Sara reaches age 62.

This is what their projected income looks like using Sara’s MetLife Leadership Deferred Compensation Plan:

The gap they previously had to make up is now filled by Sara’s distributions from her deferred comp plan. This has a significantly positive impact on their future because now the couple can let their retirement and investment assets continue to grow over the five-year period and use those gains later to supplement their income.

It’s important to remember that a deferred compensation strategy like this needs to be reevaluated each year. There are a lot of moving parts to your plan; to stay on track, you need to adjust as needed constantly. For example, you may have some unexpected expenditures that affect your cash flow and may need more money in your paycheck instead of deferring that compensation later.

Strategy 4: Hedging for Getting Laid Off Early or Early Retirement

Let’s face it, companies go through layoffs and restructuring all the time. No employer, including MetLife, is immune to shifts in the economy, technological changes, or trends that lead to job losses. Unfortunately, the employees usually feel the most impact, especially the more highly compensated ones. Having a plan in place in the event you were to get laid off is essential to your financial well-being. The good news is if you have access to a deferred comp plan, it can be a great tool to hedge against uncertainty.

Let’s look at this in action. Mike has been a vice president at MetLife for the last ten years and is currently 55 years old. One of his major concerns is how an unexpected layoff would affect him and his family financially. To hedge against this possibility, he began deferring a portion of his bonus each year through his deferred comp plan. He set the distribution date as the day he separates or retires from the company, and the distributions will be paid out over five years. The current value of the plan is $350,000.

Looking at this chart, you can see that no matter when Mike leaves MetLife, he has a purpose for his deferred compensation. If he gets laid off at 58 (or any age, for that matter), the deferred comp will pay out over the next five years. Being that the current value is $350,000, that could be around $70,000 in income each year. This will allow him to buy some time while he looks for another job, or he could accept a job making less money since he has this income to supplement his pay.

In the second scenario, Mike retires early at 62. He would receive his payout over the next five years until he is 66. The deferred compensation income would supplement his other retirement income until he takes Social Security. It could also pay for health insurance since he most likely would not be covered under his employer’s plan, and Medicare does not start until he is 65.

The last scenario has Mike retiring at the end of the year he turns 65, the longest he would continue working. If he’s able to stay that long, Mike could then use the deferred compensation to supplement his retirement income. This would enable him to withdraw less from his retirement and investment assets, allowing them to continue growing. He can also defer Social Security until 70 to max out his benefit since the MetLife Leadership Deferred Compensation Plan payout would supplement his income in the meantime. The point is that Mike would have a lot of options and flexibility.

Important Caveats

It’s important to remember that all the potential benefits of the MetLife Leadership Deferred Compensation Plan come with some risks. It’s essentially an I.O.U. from MetLife; if they go bankrupt, your deferred compensation contribution is considered unsecured debt and could be lost. If a significant portion of your wealth is also held in stock options and restricted stock units, relying heavily on deferred compensation could mean too much of your financial well-being depends on MetLife’s financial strength. Moreover, effectively leveraging deferred compensation plans requires careful thought and planning.

Keep in mind that NQDC plans have been dubbed “golden handcuffs” for a reason. As a highly compensated employee, your work is a valuable asset to MetLife as an employer, so the benefit is designed to incentivize retention. The more you make, the more you pay in taxes, and the more appealing the tax shelter is. If you intend to stay with MetLife, the financial advantages of using the plan strategically can be substantial and potentially well worth the carefully measured risk.

Defer, Don’t Delay

Deferred compensation is a potent tool that necessitates a thoughtful approach. Carefully weigh your options and proceed with cautious enthusiasm — sooner rather than later. Don’t delay putting the plan to work for your future; remember, time is valuable.

Decisions regarding the MetLife Leadership Deferred Compensation Plan should be intricately woven into the fabric of your comprehensive financial and retirement plans. Given the complexity and stakes involved, we recommend collaborating closely with a seasoned financial advisor familiar with the plan to help navigate the myriad possibilities and make informed choices aligned with your long-term goals.

As specialists in MetLife benefits and executive wealth planning, we offer a complimentary consultation to answer your deferred compensation questions. You can schedule a free session with our team here.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material was prepared by Crystal Marketing Solutions, LLC, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate and is intended merely for educational purposes, not as advice.

The MetLife 401(K) After-Tax Advantage: A Strategy for Building Tax-Free Growth

By Carmine Coppola

Let’s face it: retirement is going to be expensive. As inflation climbs, healthcare expenses surge, and sticker shock becomes the norm, it might be time to reconsider your savings strategies. The good news is that your MetLife 401(k) comes with an often-overlooked advantage: the ability to contribute after-tax funds, even after you have maxed out your allowable IRS limit.

Depending on when you start and how aggressive your approach is, you’ll need to stash away at least 10-15% of your income to fund your lifestyle in retirement. Even maxing out your regular and catch-up contributions could fall far short of your needs. When you’re accustomed to a higher-than-average income, setting aside $23,000 annually if you’re under 50 years of age and $30,500 if over 50, simply isn’t enough.

What Are After-Tax Contributions?

Not every 401(k) plan allows after-tax contributions, but your MetLife 401(k) offers this option as an added benefit — a special kind of retirement plan contribution available in addition to traditional pre-tax and Roth contributions.

It’s called “after-tax” because the money contributed has already been subjected to income tax at the time of deposit, and it doesn’t provide an immediate tax deduction like pre-tax contributions. However, the earnings on after-tax contributions grow tax-deferred within the 401(k) account, and they are also subject to income tax when withdrawn in retirement.

The MetLife 401(k) allows you to contribute between 3% and 45% of your eligible pay to the plan — unless you are considered a highly compensated employee; if so, those limits vary and can change year-to-year. The set contribution limits are for combined before-tax 401(k) savings contributions, Roth 401(k) savings contributions, and/or after-tax savings contributions.

It is important to note that a maximum of 11% of your contributions can be after-tax savings contributions.

So Why Use the After-Tax Contribution Option?

The IRS limits annual contributions for 401(k) plans for pre-tax and Roth contributions. The after-tax option allows for higher limits. Again, as of 2024, the combined limit for pre-tax and Roth contributions is $23,000 per year, or $30,500 if you’re 50 or older. However, the total contribution limit, including after-tax contributions, is significantly higher — up to $69,000 or $76,500 for those aged 50 or older in 2023. For those who may be behind on retirement savings and have the means to do so, after-tax contributions can be a viable strategy to make up some ground.

For example, let’s say you have a total income of $200,000 in 2023, are under 50 years old, and have maxed out the pre-tax and Roth 401(k) contributions at $23,000. Since MetLife will match $8,000, the total contributions will be $31,000. That leaves a gap of $38,000 before you hit the total contribution limit of $69,000. Because MetLife allows up to 11% in after-tax contributions, you can make up to $22,000 ($200,000 x 11%) in after-tax 401(k) contributions.

Conversion to Roth — A Backdoor Strategy to Optimize Your Savings

Another big advantage of MetLife’s 401(k) plan is that it allows participants to perform in-service rollovers. An in-service rollover refers to the transfer of funds from an employer-sponsored plan to an individual retirement account (IRA) or Roth IRA while you are still actively employed by the company. This makes it possible for participants who have contributed after-tax to roll over their after-tax contributions to a Roth IRA.

A Roth conversion can be a valuable strategy for building a tax-free retirement income stream — especially for those in a high tax bracket who do not qualify for a Roth and would like to continue getting the maximum deduction for pre-tax contributions.

Since after-tax contributions have already been taxed, the conversion to a Roth account won’t trigger additional taxes. The only exception is if you have generated earnings on those after-tax contributions, which is typically a result of when the funds have been sitting in the account for a while. It doesn’t mean you can’t do the conversion; it simply means that those earnings will need to be rolled into a traditional IRA in order to avoid taxation. To minimize potential tax implications, your contributions can go to the Roth account, and any earnings will go to a traditional pre-tax IRA.

In other words, take note: if you implement the backdoor Roth strategy, it is important to complete the conversion as quickly as possible — so that all earnings can be withdrawn tax-free.

A word of caution: this strategy can have some negative consequences if not done properly. It can even adversely affect your company match. Before considering a strategy like this, we recommend first speaking to Aon Hewitt to find out how much of your funds are eligible and then consult a financial and tax professional.

Tax-Deferred vs. Tax-Free Growth – The Difference Could Be Huge!

Like pre-tax and Roth contributions, after-tax contributions grow tax-deferred until you withdraw the funds in retirement. What’s often overlooked is the impact of rolling the dollars to a Roth right away versus leaving the funds to grow in the plan.

If you plan to contribute a large amount, consider moving the funds to a Roth account shortly after making the contribution. This is what is referred to as a mega backdoor Roth. In this scenario, the funds will have the opportunity not only to grow tax-deferred, but the withdrawals will also be tax-free. To learn more about this strategy, check out our blog on back-door Roth contributions.

After-tax contributions can be a remarkably impactful addition to a retirement savings strategy. But before you jump in, it’s important to review your cash flow and determine whether contributing extra dollars is feasible. Additionally, it’s critical to note that company rules and federal laws for 401(k) plans can change. Always check with your plan administrator and consult with a financial advisor or tax professional to understand how after-tax contributions fit into your overall retirement and tax planning strategy.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.