Your DuKE ENERGY Legacy
MAXIMIZED
Hilltop Wealth Advisors specializes in helping employees of Duke Energy—and other companies in the Triangle—capitalize on their benefits to maximize their income.
We’re here to help you better understand the benefits you may be receiving from Duke Energy and leverage financial opportunities to build your portfolio, make strategic investments, save, and reduce taxes.
Learn more through a complimentary consultation with a Hilltop Advisor.
Duke ENergy BENEFITS +
Opportunities
Learn about your possible company benefits and
discover financial opportunities that could await you.
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If you are enrolled in a High Deductible Health Plan, then you have access to a Health Savings Account. Duke Energy may contribute to this account and you can make additional, tax-deductible contributions up to the annual limit. The earnings in this account are tax-deferred, and the withdrawals are tax-free if you use the funds for qualified medical expenses.
OPPORTUNITIES:
With an HSA, you do not have to deplete the account by the end of the calendar year. Instead, you could focus on building up the balance and investing it to take advantage of long-term market performance, and use the funds for future medical expenses. You can also take an HSA distribution at any point to reimburse yourself for previous medical expenses, if those expenses were incurred after the HSA was first opened.
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This retirement plan has a variety of investment options and allows you to make several different types of contributions: pre-tax, Roth, and after-tax. With pre-tax and Roth contributions, you are subject to the annual salary deferral limit. After-tax contributions have a different, higher contribution limit. Duke Energy will generally match contributions up to 6% of your salary.
OPPORTUNITIES:
If you have reached the salary deferral limit for your 401k contributions, the “mega backdoor Roth” strategy can be an effective way to save more – tax free – for retirement. To do this, you make after-tax contributions to the 401k and then complete an in-plan conversion. This will move the after-tax contributions to the Roth side of the 401k, where the funds can be invested and grow tax-free.
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LTI packages can be awarded to certain employees in a variety of forms: typically Restricted Stock Units and Performance Shares. RSUs are a type of equity award. As they vest, you receive shares of company stock outright. The value of the shares on the day of vesting will be taxable as ordinary income; any additional gains or losses in those shares will be taxes at capital gains rates. Performance share awards are based on Duke Energy hitting a variety of company performance metrics.
OPPORTUNITIES:
RSUs create a tax liability equal to the value of the shares vesting. While a portion of the shares are typically used for tax withholding the standard rate is 22%. Those in higher tax brackets will want to adjust their withholding to cover this tax. Over time, the value of your shares can build up. Be sure to review your concentration risk. Selling high basis shares and gifting low basis shares often helps to reduce the tax impact. Utilizing stock gifts to a donor advised fund or endowment can also help offset high income tax years while funding gifts to your favorite charities many years into the future.
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This retirement plan is only available to certain executives. It is a “non-qualified deferred compensation plan”, so it does not have the same limits and restrictions as the Retirement Savings Plan. The ESP allows you to make additional contributions by deferring a percentage of your salary and/or performance pay— this is especially helpful if your income is above the annual 401k income limits.
OPPORTUNITIES:
The ESP can be a smart way for high-income earners to save on taxes. You select a distribution period when you opt into the plan, and you generally cannot change that selection later. These distributions are taxable as income, so you’ll want to be intentional with your distribution selection. Consider aligning your distribution schedule to cover income needs between retirement and the start of other income sources like social security and required minimum distributions.
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This retirement plan is available to certain employees whose income will exceed the annual “salary cap”. The salary cap refers to the maximum amount of annual compensation that can be used to determine employee and employer contributions. The Cash Balance Pension Plan is a “non-qualified deferred compensation plan” that allows Duke Energy to make the full RSP matching contribution, even if you’re above the salary cap limit. Duke Energy may also make supplemental, discretionary contributions to this plan.
OPPORTUNITIES:
This plan allows you to maximize your retirement savings, even as your income increases past the salary cap thresholds. Investments inside this plan are limited to fixed cash position with a 4% interest rate. You may want to consider balances in this plan as a fixed income holding when evaluating your overall portfolio allocation.
Hilltop
Executive
Advantage
Hilltop Wealth Advisors specializes in retirement and wealth strategies designed for Duke Energy executives like you.
See how we can help you leverage your company benefits to maximize your financial legacy.
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Risk-managed portfolio design—inside and outside of your retirement plan—helping you to preserve and grow wealth.
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Comprehensive tax projections. Social Security timing strategies, and charitable planning to keep more in your pocket.
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Guidance on HSA investing, Medicare integration, and retiree medical plan coverage with the Cisco Retiree Medical Access Plan.
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Strategies for efficient distributions, Roth conversions, and tax-smart withdrawal sequencing.
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Strategies for efficient distributions, Roth conversions, and tax-smart withdrawal sequencing.
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Beneficiary reviews, trust coordination, and multi-generational planning in coordination with your estate attorney.
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Experienced guidance on managing concentrated Cisco equity positions and equity compensation (restricted stock and employee purchase plans).
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Leverage charitable giving tools to maximize your impact and optimize Duke Energy’s 1:1 gift match (up to $2,500).
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Planning for dependents, special needs and succession—so your wealth serves your family for generations to come.
Get STARTED.
Use the calendar to book a complimentary consultation with a Hilltop Wealth Advisor or give us a call.
Phone
919-401-1500
HOURS
M-F, 8AM-5pm (ET)
Have equity compensation?
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Disclosure: Hilltop Wealth Advisors is a registered investment adviser. Registration does not imply a certain level of skill or training. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. Hilltop Wealth Advisors is not an accountant or attorney and does not provide tax or legal advice.