Advanced Planning Opportunities for Individuals with Employer Plans

At the end of 2022, there were nearly 60 million active participants in 401(k) plans, with millions of retirees retaining balances in plans sponsored by former employers. While such plans are similar in many ways to the IRA accounts most advisors are more familiar with, there are also important differences that can create both unique planning opportunities and challenges for plan participants. In this session, attendees will explore employer plan-specific considerations for individual participants, including Net Unrealized Appreciation (NUA) planning, use of the “still working” exception, basis isolation techniques, and more.

Learning Objectives:

1. Identify the key rules governing Net Unrealized Appreciation (NUA)
2. Understand how NUA can be beneficial even when there is only modest appreciation
3. Explore ways for clients to take advantage of the “Still Working Exception”
4. Learn how to take advantage of the “Mega-Back-Door Roth” option
5. Describe the potential benefits of leaving money in a current employer’s plan versus other available options