Dan Zajac, philadelphia financial advisor

What is a Roth Conversion and Why I Love It

Roth IRAs may be fantastic financial planning and investment vehicles for many reasons.  Specifically, their tax-deferred growth and tax-free income features make them particularly attractive to savers of all ages and incomes. Unfortunately Roth IRAs were not always a readily available option for everyone.   In fact, the rules for contributing to a Roth IRA were […]

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Dan Zajac, philadelphia financial advisor

Selling Incentive Stock Option Shares To Accelerate Tax Credits

Incentive stock options may provide for the opportunity to pay taxes on the gain at long term capital gains rates instead of at ordinary income rates if exercised following the rules for a qualifying disposition.  Because of this potential tax advantage, many will attempt to meet the standard for qualifying in order to “save” on […]

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Dan Zajac, philadelphia financial advisor

How to ROTH IRA at Any Age or Income

ROTH IRAs can be a fantastic part of any financial plan. In fact, they can be a good fit for savers both young and old, pre-retirees and retirees, and low and high wage earners. This is because ROTH IRAs aren’t a one-size-fits-all model. They have features that can benefit any age and any demography. But […]

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Dan Zajac, philadelphia financial advisor

What You Should Know about Employee Stock Purchase Plans (ESPP)

An Employee Stock Purchase Plan (ESPP) is an employee benefit that often allows employees to purchase company stock at a discount based on the fair market value. This discount can be as high as 15%. Generally, employee stock purchase plans are offered in an effort to incentivize employees. Over time, with regular and consistent participation, […]

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NUA and Net unrealized appreciation

What Is Net Unrealized Appreciation?

Net unrealized appreciation is an underused and often unknown tax planning opportunity for those who own company stock inside a 401(k) plan. For many of the employees that participate in an employer-sponsored 401(k) plan, the assumption is that when money is withdrawn from the plan, it will be taxed at ordinary income tax rates. For […]

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ESPP or employee stock purchase plan

Why Your Employee Stock Purchase Plan May Be a Great Deal

Employee stock purchase plans allow for plan participants to purchase company stock at a discounted rate of up to 15% (subject to your specific plan rules, of course). Based on this simple statement alone, one could argue that an employee stock option plan is something that all eligible employees should consider. While this argument may […]

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Dan Zajac, philadelphia financial advisor

4 Questions to Ask When Your Employer Stock Options Vest

Employer stock options are often issued as part of an employee compensation package to reward and retain key employees. If the company does well, the employee also does well through an appreciating stock price. However, employer stock options may also apply the proverbial golden handcuffs to an employee.  Leave the company before the options vest […]

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What Is a QLAC and Why Do Longevity Annuities Matter?

Qualified longevity annuity contracts, or QLACs, allow an account owner to make contributions into an annuity contract and then defer income and distributions for years, with the intent of receiving an income at a future date. As a result of forfeiting access to the funds prior to receiving income, the contribution to the QLAC is […]

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exercise incentive stock options and AMT

Why Exercising Your Incentive Stock Options Early May Be the Best Strategy

In lieu of intentionally exercising for a strategic reason, incentive stock options (ISOs) are often held until near expiration.  At which point, at the risk of expiring and losing all value, the recipient of the incentive stock options will likely choose to exercise. Upon exercise, tax reporting will occur.  Exactly what reporting occurs and the […]

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Dan Zajac, philadelphia financial advisor

Why Your Social Security May Be Taxed More Than You Think

For many of those now receiving Social Security after decades in the workforce, it’s eye opening when they realize that Social Security may be taxable upon receipt. In fact, depending on how much other taxable income you have in retirement, anywhere from zero to 85% of your Social Security income may be taxable. Most articles […]

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