Sophia & Alex
Tech VP + Finance Director · Summit, NJ · Age 45
Married Filing JointlyIncome: $1.5MTechCouples
“At $1.5M combined, we assumed our accountant had it handled.”
The Situation
$1.1M (Sophia, VP Engineering) + $400K (Alex, Finance Director)
Large RSU portfolio with $400K unrealized gains
Three kids, NJ property taxes $28K/year
Strategies Identified
1. Deferred Compensation (NQDC)
IRC §409A
$42,000
Defer $120K of Sophia's bonus into NQDC plan. Saves at top marginal rate.
2. Donor Advised Fund (Appreciated RSUs)
IRC §170(e)
$35,200
Donate $100K in appreciated RSUs to DAF. Avoid $60K in LTCG + deduct FMV.
3. SALT + PTE Election (NJ)
IRC §164, NJ PTE
$28,000
NJ pass-through entity election bypasses $40K SALT cap for Alex's K-1 income.
4. Mega Backdoor Roth + Spousal IRA
IRC §415(c), §219(c)
$21,200
Both max mega backdoor. Spousal Roth for stay-at-home years not applicable here.
Tax Impact
Before
$520,000
→
After
$393,600
Annual Savings
$126,400
24% reduction
Action Steps
1
Enroll in NQDC plan before Dec 31 for next year's compensation
2
Transfer appreciated RSUs to Schwab Charitable DAF
3
File NJ PTE election for Alex's advisory LLC
4
Max mega backdoor Roth for both employers
What could you save?
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