Your GSK Legacy
MAXIMIZED
Hilltop Wealth Advisors specializes in helping employees of GSK—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 GSK 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.
GSK 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. GSK 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. GSK will contribute 7% to your 401k and will also match contributions up to 4% of your salary, for a total 11% employer contribution.
OPPORTUNITIES:
Be sure to contribute at least 4% per pay period to capture the full match. With the 7% Core Contribution, that’s a very generous 11% employer money toward retirement. GSK has an end of year “Match True Up” which will add the extra match you should have received if a pay-period fell short of the 4% minimum as long as you reached that minimum for the full year. This especially helps if you front-loaded contributions, hit the IRS limit mid-year, or missed checks.
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Employees who are age 55+ with 10 or more years of eligible employment may have access to GSK retiree health benefits. If you are not yet eligible for Medicare, you have access to a PPO and HDHP option through the GSK Pre-Medicare Retiree Benefit. If you are eligible for Medicare, you have access to the GSK Retiree Medicare HRA plan.
OPPORTUNITIES:
An employer-based retiree health plan can help to reduce medical expenses in retirement. Understanding your future healthcare coverage can be a key piece to optimizing your retirement financial plan.
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LTI packages can be awarded to certain employees in a variety of forms: restricted stock units, stock options, or cash. They generally vest after three years, and award levels are based on your grade. Additionally, Executive Directors can receive Performance Share Plan (PSP) awards that vest over three years as various performance metrics are achieved.
OPPORTUNITIES:
Over time, the value of your shares can build up. Be sure to review your concentration risk and understand the impact of leverage inherent in your options and restricted stock. 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 401k Plan. The ESSP 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 ESSP 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.
Hilltop
Executive
Advantage
Hilltop Wealth Advisors specializes in retirement and wealth strategies designed for GSK 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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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 Cisco’s 1:1 gift match (up to $10,000).
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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?
Make wise decisions about one of your most valuable assets with Hilltop’s Equity Compensation Analysis. Designed to provide you with unique and insightful perspectives on the full value of your equity, its inherent risk, and the hidden leverage often overlooked in your stock options to help you reach your financial goals.
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.