Your Kaiser Retirement: TPMG’s Physician Benefits and Compensation Plan 2 November Make-Up Payment Letter
December 15th is the due date for responding to this letter but the decision is usually reached in late October anticipating the November Plan 2 direct deposit. This letter addresses an over funding that occurs for some Plan 2 deferred compensation participants. Kaiser refunds this amount to you and gives you until December 15th to contribute up to this amount in additional Plan 3 contribution.
To help our clients make this annual decision we review their family tax profile, current retirement savings, family goals, family financial exposures, and available cash flow.
It is our experience that the majority our clients select to make a voluntary contribution to Plan 3 of at least some of their Plan 2 make-up payment.
Although this is true for most clients it is not always the right choice for all. When cash flow is tight, there is low tax liability, or their retirement goal is fully funded we find that clients tend to choose to apply the Plan 2 make-up payment to other wealth building purpose.
If you would like to prepare for next year’s voluntary payment decision reach out to your Wealth Planner. If you are working with a professional Wealth Planner they should understand your specific situation before they provide advice – only accept fiduciary advice. Finally, give yourself enough time to evaluate your tradeoffs so that you prioritize and fund all of your family goals.
Edi Alvarez, CFP®
BS, BEd, MS