Good afternoon,
Two questions to see about any recent changes that may has been made in the areas of SEP-IRAs or RSUs:
1) With regards to SEP-IRAs, I am being paid out one years salary ($242K - 8 months of which is incurred in 2023) in the form of severance in bi-weekly installment through the normal payroll process which will be ending on the one year anniversary of my term date . Unfortunately, through the terms of the separation agreement participation in the 401K was not available. What adds further complexity, is that I will be beginning a new role on July 17, 2023 ($200K annual salary prorated - nearly $100K incurred in 2023) and this position will be eligible to participate in the new company's 401K in Oct 2023. So if I am eligible to contribute the maximum amount to my SEP-IRA since my severance is not 401K eligible, my thought is that this would be preferable to contributing to contributing to the new company's 401K on a lower salary basis for only a 3 month period, if my goal is to minimize my taxable income.
So the questions are as follows: Am I eligible under this fact partner to contribute to my SEP-IRA pretax? If so, what would be the maximum amount & by what date would I have to make this contribution? Then if I am not eligible to contribute pretax to my SEP-IRA, is my next best option to lower my taxable income through pretax contributions to my new 401K or is there another option that I am not thinking about?
2) My new role will eventually include an equity incentive portion of the comp package via RSUs. Never having participating in equity through this type of instrument, what types of tax consideration should I be thinking about or discussing with my new employer? Unfortunately, this is the type of situation where I don't know what I don't know type of situation, but suspect that there are tax-related issues generally associated this this type of compensation instrument that may be evolving and I should familiarize myself with to become more educated.
Thanks for any insights you may be able to provide.
Thanks,
John
