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Monday - Friday 9 a.m. - 5 p.m.
Winter Park, Florida, 32789
Benefits beyond the restrictions placed on traditional qualified plans or the limitations of group insurance.
The education and strategic planning services offered by Financial Harvest Wealth Advisors can help employees genuinely understand their savings and benefits options and utilize strategic opportunities for securing and accumulating wealth.
This webpage shows examples of select benefit plans and insurance products that may vary by plan design and employer. (Many of the examples shown here represent strategies we’ve used to help clients with their Lockheed Martin employee benefits). However, the charts and illustrations are also helpful for anyone interested in learning more about the ways today’s savvy and competitive employers are partnering with their employees, helping their valued team members achieve financial wellness.
Attracting and retaining mission-critical talent hinges on employers who, as plan sponsors, equip employees with education, tools, and opportunities to achieve their savings goals while building rock-solid retirement readiness. Learn how your organization can enhance its employee benefit offerings – Contact Financial Harvest Wealth Advisors.
Financial Harvest Wealth Advisors assists highly compensated employees of Lockheed Martin (LMCO) and other public and privately held companies, helping them maximize their retirement savings and life and disability coverage.
How willing are you to scale back your current lifestyle when you reach retirement? How much do you want your family to compromise in the event of your untimely death or long-term disability? These are tough but real questions employees and executives must face. And the more your income increases, the harder these questions may be for you to answer without objective, third-party insights and guidance.
We invite you to explore the topics below and then talk with David Witter for 30 minutes. One no-obligation phone call could lead to a significantly more secure future for you and your family.
Will your retirement bring the freedom to expand your life and enjoy new experiences? Most retirement plans, even when supplemented by Social Security, fall short in comparison to pre-retirement earnings. And as you rise in your career, the gap between the amount you can save through traditional retirement plans and the amount you would like to enjoy in retirement grows wider and wider.
One solution for bridging this gap is to utilize after-tax contributions to your Salaried Savings Plan to fund Roth IRAs. To help you save more effectively for retirement, you’ll want to:
Email david@financialharvest.com
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The three case studies below present two possible scenarios for each of three workers. Case Studies #1 and #2 are applicable to workers age 49 and younger and are based on guidelines and limits set by the IRS for the 2022 tax year. In Case Study #1, the executive is age 38, while in Case Study #2 the executive is age 43. The third Case Study looks at an executive who is age 50 and positioned to take advantage of the IRS permitted catch-up options for workers age 50 and above.
In all three examples, Option A represents c-suite executives who want to utilize their 401(k) plan with few if any dollars going into their nonqualified plan. Option B shows scenarios for c-suite executives who want to optimize and get every penny possible into their 401(k) plan and don’t mind if some of their deferrals and even some of their company match spill into their nonqualified deferred compensation plan.
| Age 38, overall limit – $66,000 | |
| Base | $255,000 |
| Bonus & LTI | $120,000 |
| Total Compensation | $375,000 |
401(k) – company match
401(k) – Other company contribution
| SSP 401k | |
| 9% Pre-tax (Capped at $22,500) | $22,500 |
| 7% After-tax | $17,500 |
| 4% Match (On base pay only) | $10,000 |
| Other 6% Contribution (On base pay only) | $15,000 |
| 401k Total | $65,000 |
| NQSSP | |
| Compensation when switched | $250,000 |
| 16% NQSSP deferrals (no bonus deferred) | $1,280 |
| 4% Match and 6% Other | $500 |
| SSP 401k | |
| 10% Pre-tax (Capped at $22,500) | $22,500 |
| 8% After-tax | $18,000 |
| 4% Match (On base pay only) | $9,000 |
| Other 6% Contribution (On base pay only) | $13,800 |
| 401k Total | $54,000 |
| NQSSP | |
| Compensation when switched | $225,000 |
| 18% NQSSP deferrals (no bonus deferred) | $5,400 |
| 4% Match and 6% Other | $3,000 |
All examples used in this document are hypothetical and are for illustrative purposes only.
| Age 43, overall limit – $61,000 | |
| Base | $300,000 |
| Bonus | $80,000 |
| Total Compensation before LTI | $380,000 |
| Max 4% Match | $12,000 |
401(k) – company match
401(k) – Other company contribution
| SSP 401k | |
| 7% Pre-tax (Capped at $20,500) | $20,500 |
| 3% After-tax | $9,000 |
| 4% Match (On base pay only) | $11,714 |
| Other 6% Contribution (On base pay only) | $18,000 |
| 401k Total | $59,214 |
| NQSSP | |
| Compensation when switched | $292,857 |
| 10% NQSSP deferrals (no bonus deferred) | $714 |
| 4% Match | $286 |
| SSP 401k | |
| 7% Pre-tax (Capped at $20,500) | $20,500 |
| 4% After-tax | $10,786 |
| 4% Match (On base pay only) | $11,714 |
| Other 6% Contribution (On base pay only) | $18,000 |
| 401k Total | $61,000 |
| NQSSP | |
| Compensation when switched | $292,857 |
| 11% NQSSP deferrals (no bonus deferred) | $714 |
| 4% Match | $286 |
| Age 50, overall limit – $73,500 | |
| Base | $350,000 |
| Bonus and LTI | $170,000 |
| Total Compensation | $520,000 |
401(k) – company match
401(k) – Other company contribution
| SSP 401k | |
| 6% Pre-tax (Capped at $22,500) | $22,500 |
| Catch-up | $7,500 |
| 3% After-tax | $9,643 |
| 4% Match (On base pay only) | $12,857 |
| Other 6% Contribution (On base pay only) | $19,286 |
| 401k Total | $71,886 |
| NQSSP | |
| Compensation when switched | $321,429 |
| 10% NQSSP deferrals (no bonus deferred) | $2,857 |
| 4% Match and 6% Other | $2,857 |
| SSP 401k | |
| 8% Pre-tax (Capped at $22,500) | $22,500 |
| Catch-up | $7,500 |
| 5% After-tax | $10,250 |
| 4% Match (On base pay only) | $14,063 |
| Other 6% Contribution (On base pay only) | $16,875 |
| 401k Total | $72,188 |
| NQSSP | |
| Compensation when switched | $281,250 |
| 13% NQSSP deferrals (no bonus deferred) | $36,563 |
| 4% Match and 6% Other | $28,125 |
Group life insurance provided through your employer is an extremely worthwhile benefit. Many companies offer employees excellent group life insurance options that establish a baseline of coverage. As a result, employees and executives may assume that their existing policy would adequately provide for the needs of their beneficiaries.
But ‘doing the math’ often reveals surprising gaps between your insurance policy payout and the amount of money your loved ones would need for the years ahead in the event of your passing.
You and your family logically consider your incentives and bonuses as part of your total compensation. Omitting them from the formula in determining your income replacement objectives skews the math. And the higher your earnings, the bigger your shortfall may be. Highly compensated employees (HCEs) frequently discover that they are among the most underinsured workers in the workplace.
Reality Check: Your life insurance policy is based on your qualified pay, which means it does not include your bonus pay or your vesting Long-Term Incentives (LTIs).
HCE Elizabeth earns $280,000 annually in base pay. Elizabeth’s bonus pay is $125,000 annually, plus she receives $195,000 in LTI vesting. While Elizabeth’s qualified pay (her salary) is $280,000, her annual total compensation is $600,000.
Elizabeth’s group universal life insurance policy selection is 4x her base pay or: $280,000 x 4 = $1.12 million
But in evaluating the number of years of future income Elizabeth needs to replace in order to assure her family’s financial security, her coverage shortfall becomes very obvious.
Using the 10x rule, Elizabeth’s optimal coverage should be: $600,000 x 10 = $6 million
Solution: Purchasing a supplemental individual term life insurance policy (in addition to your employer-offered benefits) can take you from underinsured to confidently and comprehensively insured. And while group life insurance premiums typically increase each year, purchasing an individual level term policy keeps your cost stable … and your peace of mind high.
Level term life insurance guarantees that you pay the same price for your policy for the entire length of the term, often 20-30 years, plus your death benefit never changes. The Financial Harvest team can help you evaluate the number of years of income you need to replace, your true total compensation value, and your options to purchase a supplemental individual policy to alleviate the gaps, and the worries.
Email david@financialharvest.com
Or, schedule now:
30-minute video meeting
30-minute phone meeting
Reality Check: Your long-term disability policy is based on your qualified pay, which means it does not include your bonus pay or your vesting Long-Term Incentives (LTIs).
If the American workforce took any one lesson away from the pandemic it was that sometimes in life, the most unanticipated events happen. No one expects to become permanently disabled, yet according to data from the Social Security Administration, prepared by the Center on Budget and Policy Priorities, a 20-year-old worker (in 2020) has a one in three chance of death or disability before reaching retirement at age 67.
Long-term disability insurance protects your income. In so doing, it can protect your future and that of your spouse and children. But most workers do not have sufficient LTD insurance to allow them or their family to go forward without significant disruption and changes to their current quality of life.
Email david@financialharvest.com
Or, schedule now:
30-minute video meeting
30-minute phone meeting
Samuel is a highly compensated employee at Lockheed Martin. He earns $280,000 in base pay, with bonus pay of $125,000 annually, and $195,000 in long-term incentive vesting, which brings his total rewards pay to $600,000 annually.
Samuel’s current long-term disability is 60% of his base pay. Sixty percent of $280,000 is $168,000 annually or $14,000 monthly, which for Samuel would represent a substantial reduction in his pre-disability earnings. Would this amount be sufficient to provide for the added costs of living with a disability? How would $14,000 stand up to inflation, and would Samuel still be positioned to provide for his children’s educational needs and any number of other plans he and his spouse had for their family?
Often employees have access to Health Savings Accounts that offer the “triple crown” of tax savings. Health savings accounts (HSAs) are tax-deductible savings plans that enable employees to put aside pre-tax dollars for healthcare expenses that may arise in the future or even after retirement.
Here’s how this tax savings triple play can work for you:
Many employees can participate in a triple tax-advantaged HSA available in coordination with a high-deductible health insurance plan offered through their employer. However, regulatory guidelines established by the federal government state that employees cannot participate in any HSA if they are enrolled in Medicare, covered by medical benefits from the Veterans Administration, and a few other specific exclusionary conditions. Other requirements also exist, including age limits and contribution limits.
| HSA Annual Contribution Limits | 2025 |
| HSA Employee Contributions for Individual Coverage Plans | $4,300 |
| HSA Employee Contributions for Family Coverage Plans | $8,550 ($164.42 weekly) |
| Employees who are age 55 and older can contribute an additional $1,000 per year. | |
| Employees whose spouse is 55 or older may establish a separate HSA and make a catch-up contribution to that account. | |
| Employer HSA Account Contributions | 2025 |
| LMCO will contribute annually | Up to $1,500 |
| LMCO will contribute additionally per employee (conditions apply) | $500 |
| LMCO will contribute for employee’s spouse (conditions apply) | $500 |
Regulated by the Internal Revenue Service (IRS), additional information about Health Savings Accounts (HSAs) is available at IRS.gov. (Search: “HSA” for this year’s most up-to-date regulatory guidance.)
Email david@financialharvest.com
Or, schedule now:
30-minute video meeting
30-minute phone meeting
Whether we serve you face to face or via our digital platforms, we are committed to ensuring that you have the answers you need for sound and confident decision making to help you build and preserve wealth.
1091 W. Morse Blvd., Suite 200
Winter Park, Florida, 32789
All examples used in this document are hypothetical and are for illustrative purposes only.
This information is intended to be used for educational purposes only and does not constitute tax, legal, or investment advice.
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