Should I contribute to the Roth 401(k) option?

The Roth 401(k) can be a great option that will allow earnings to grow and be withdrawn tax free. However, unlike typical 401(k) contributions that are tax deductible, Roth contributions are not. Therefore, an analysis of your current and future tax situation must be considered to find out what is the best option for you. The best option may be to contribute a specific amount to the Roth and a specific amount to the traditional 401(k).

What can I do if I hold a lot of Lilly stock in my 401(k)?

It is not uncommon for employees to amass a significant position in their company stock. It is important to consider your personal risk preferences and timing to retirement in determining what is the right amount of Lilly stock to hold. We will discuss diversification options as well as a tax-friendly way to sell company stock from a retirement account.

Can I access funds from my 401(k) without getting nailed with taxes and penalties?

Depending on your age and particular circumstance, there are a few different options available to avoid penalties and maybe even avoid taxes on accessing your retirement money. Unfortunately, many do not consider their options and take a straight withdrawal from their 401(k) which often results in both taxes and penalties.

What is the Self-Directed option in my 401(k)? Should I use it?

The self-directed option allows you access to many more investment options. This can be a benefit to many, but sometimes having too many options can cause investors to get overwhelmed or treat their retirement account like a casino. The best answer to this question is that it depends on you and your plan. We will help you make the best decisions for your 401(k) and ensure your decisions are in line with your values and goals.

I have several types of equity (stock) awards. What do I do with it?

Each type of compensation has its own stipulations and what to do with each award is dependent on your unique situation. What your co-worker does may not be best for you. Consideration of your goals, risk preference, and tax situation will guide us in our advice as to what would be best for you.