4 Steps to Maximizing Employee Benefits for High Earners

1. Maximize 401K and HSA contributions to lower your tax bracket. Estimate your taxes now and in retirement to see if deferring your income to retirement would reduce your taxes owed. Don't forget to take advantage of the catch-up contributions for larger deferrals that start at age 50, Also, consider a Mega backdoor Roth IRA if available.

2. Maximize your employee stock purchase program (ESPP). Take advantage of your ESPP plan, as it is a valuable benefit, but actively manage the plan taking into consideration total investment allocation, risk and effect on taxes. Most important is to maximize the benefit and not be over- leveraged to your company's success or failure.

3. Manage your restricted stock units (RSUs) for risk and taxes. Look at RSUs as income and part of your financial plan, not as a stock pick. Compare your company against other investments for risk, return and tax efficiency. (See my post on steps to managing RSUs.)

4. Leverage trust services. Many high earners who are building wealth do not have a will or trust, which opens them up to probate and significant costs to transfer wealth. If your company offers free attorney services, take advantage of them to put a basic estate plan together.

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.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

Jesse Waters is a registered representative with and securities and advisory services are offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.