Maximizing Employer Benefits 

Our client is currently in the top tax bracket in a high-paying position at Lockheed Martin.

We review income and tax flows yearly to determine the appropriate deferral selection to build out our client’s after-tax bucket. Once his after-tax is maxed out for the year, we complete a mega backdoor Roth and roll the proceeds into a Roth IRA at Schwab, where they can grow tax-free in perpetuity. The client can max out pre-tax 401(k) deferrals for the income reduction while building out his other tax buckets.

We have also set up a spousal Roth IRA for his wife. We can complete a Backdoor Roth IRA contribution each year to continue building out the family’s Roth bucket.

Lockheed Martin also allows a Self-Directed Brokerage Account option for retirement plan participants. We have utilized this strategy for the client and have built a portfolio that more closely aligns with his outside investment options instead of being limited by the investment options of the 401(k) plan. We can rebalance, trade, and allocate cash as needed to keep the client’s assets aligned from an investment perspective.

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