the big three

The city of Detroit also known as “The Motor City” was built on auto production and manufacturing.  Many of our clients and generations of their families have spent decades working for companies like Ford Motor Company.  Ford offers a litany of specific benefits to their employees during their working years as well as when they retire.  Over the years we have gained a specialized knowledge in these benefits and partner with employees of Ford to assist in navigating and maximizing these benefits for their retirement goals and objectives both while they work and into retirement.

Ford Savings and Stock Investment Plan (SSIP) – The Ford SSIP is a retirement benefit investment that is Ford Motor Company’s version of a 401(k) plan.  This plan offers employees of the company an opportunity to have money withheld and automatically deposited on their behalf from each paycheck into a retirement-based investment.  Ford Motor Company will also “match” ninety cents of every dollar up to the first 5% of income contributions any employee makes into this account.  This account also offers a Tax Deferred “traditional” and well as a Tax Free “Roth” option.  Investment options are provided through the platform “Alight” and a list of several options are available across a variety of asset classes for both stocks and bonds.

Inservice Rollovers – For some employees that are still in service and working actively for Ford there is a benefit available to them called an “in-service rollover.”  This is an option that allows for an employee to “rollover” or transfer a portion or all their current SSIP balance into an IRA.  A consideration of this option involves using an IRA to allow for an unlimited array of investment options which can be tailored into specific strategies that offer options that may not exist in the current Alight investment options mix inside of the SSIP.  You do not lose the benefits of the SSIP including the match from this strategy.

Retirement Rollovers – Once retired and a separation of service from Ford occurs employees have the option to “rollover” their current 401k balance into an IRA which allows for more investment options and well and more control over the asset within an IRA as opposed to the limitation of the investment options in the Alight SSIP investment mix.

Pension – For those employees who qualify for a pension through Ford there are several considerations when it comes to options you may have when you retire.  If you maintain the pension option and you are married, you want to ensure you have navigated the “spousal continuation” options to ensure that you are maximizing this benefit and protecting your loved ones in case you predecease the pension payout.  Employees are often offered a “lump sum” option that allows for the total account value to be rolled over into an IRA.  This option serves those who are better set to take the total account value as opposed to locking a lifetime payout period with Ford.

Social Security – Many of the income benefits provided by Ford such as the pension will include “drop offs” of the amount paid each month when the employee reaches certain election ages for SSI.  For example, many pensions that begin payout prior to age 62 will include an additional amount of money the employee receives until they reach age 62.  Upon reaching age 62 a portion of the pension will fall off with the assumption that the employee will elect Social Security at that point to recoup the difference in what they were receiving from the pension.  Navigating Social Security for these reasons as well as in general to ensure your retirement income is being maximized is crucial.

Profit Sharing – Ford often engages in “profit sharing” with its employees.  When Ford has a good year and produces higher revenues, they will typically announce a “profit sharing” with their employees.  This is a predetermined number that each employee who qualifies will receive as “additional compensation” from Ford.  In essence Ford has excess revenue that allows them to share with their employees.  This is a great benefit, but it is important to understand the tax on this benefit.  This money is added to your paycheck but is reported as income to the employee.  It is important for each employee to understand and navigate the tax implications of this benefit and ways to minimize the tax.

The city of Detroit, also known as “The Motor City,” was built on auto production and manufacturing.  Many of our clients and generations of their families have spent decades working for companies like General Motors Company.  GM offers a litany of specific benefits to their employees during their working years as well as when they retire.  Over the years we have gained a specialized knowledge in these benefits and partner with employees of GM to assist in navigating and maximizing these benefits for their retirement goals and objectives both while they work and into retirement.

GM Personal Savings Plan (PSP) or Retirement Savings Plan (RSP) – The GM PSP and RSP is a retirement benefit investment that is GM’s version of a 401(k) plan.  This plan offers employees of the company an opportunity to have money withheld and automatically deposited on their behalf from each paycheck into a retirement-based investment.  GM gives an automatic 4% of employee’s salary without the employee being required to contribute any money as long as they are enrolled in the plan.  Additionally, GM will also “match” dollar for dollar up to 6% of income contributions any employee makes into this account.  This means that an employee can earn up to 10% of additional compensation from GM by putting just 6% of their income away a year into this plan.  This account also offers a Tax Deferred “traditional” and well as a Tax Free “Roth” option.  Investment options are provided through the platform “Fidelity” and a list of several options are available across a variety of asset classes for both stocks and bonds.

Inservice Rollovers – For some employees that are still in service and working actively for GM there is a benefit available to them called an “in-service rollover.”  This is an option that allows for an employee to “rollover” or transfer a portion or all their current PSP/RSP balance into an IRA.  A consideration of this option involves using an IRA to allow for an unlimited array of investment options which can be tailored into specific strategies that offer options that may not exist in the current Fidelity investment options mix inside of the PSP/RSP.  You do not lose the benefits of the PSP/RSP including the match from this strategy.

Retirement Rollovers – Once retired and a separation of service from GM occurs employees have the option to “rollover” their current 401k balance into an IRA which allows for more investment options and well and more control over the asset within an IRA as opposed to the limitation of the investment options in the Fidelity investment mix.

Pension – For those employees who qualify for a pension through GM there are several considerations when it comes to options you may have when you retire.  If you maintain the pension option and you are married, you want to ensure you have navigated the “spousal continuation” options to ensure that you are maximizing this benefit and protecting your loved ones in case you predecease the pension payout.  Employees are often offered a “lump sum” option that allows for the total account value to be rolled over into an IRA.  This option serves those who are better set to take the total account value as opposed to locking a lifetime payout period with GM.

Social Security – Many of the income benefits provided by GM such as the pension will include “drop offs” of the amount paid each month when the employee reaches certain election ages for SSI.  For example, many pensions that begin payout prior to age 62 will include an additional amount of money the employee receives until they reach age 62.  Upon reaching age 62 a portion of the pension will fall off with the assumption that the employee will elect Social Security at that point to recoup the difference in what they were receiving from the pension.  Navigating Social Security for these reasons as well as in general to ensure your retirement income is being maximized is crucial.

Profit Sharing – Ford often engages in “profit sharing” with its employees.  When GM has a good year and produces higher revenues, they will typically announce a “profit sharing” with their employees.  This is a predetermined number that each employee who qualifies will receive as “additional compensation” from GM.  In essence GM has excess revenue that allows them to share with their employees.  This is a great benefit, but it is important to understand the tax on this benefit.  This money is added to your paycheck but is reported as income to the employee.  It is important for each employee to understand and navigate the tax implications of this benefit and ways to minimize the tax.

The city of Detroit, also known as “The Motor City,” was built on auto production and manufacturing.  Many of our clients and generations of their families have spent decades working for companies like Stallantis (formerly Chrysler).  Stellantis offers a litany of specific benefits to their employees during their working years as well as when they retire.  Over the years we have gained a specialized knowledge in these benefits and partner with employees of Stellantis to assist in navigating and maximizing these benefits for their retirement goals and objectives both while they work and into retirement.

Stellantis Salaried Employees Savings Plan (SESP) or Hourly Employees Deferred Pay Program (HEDPP) – The Stellantis SESP or HEDPP is a retirement benefit investment that is Stellantis version of a 401(k) plan.  This plan offers employees of the company an opportunity to have money withheld and automatically deposited on their behalf from each paycheck into a retirement-based investment.  Stellantis will apply an automatic 3% contribution from the company, plus a 50 cent on the dollar match for each dollar contributed, up to 10% of an employee’s base pay.  This means that an employee can earn up to 8% of additional compensation from Stellantis by putting just 10% of their income away a year into this plan.  This account also offers a Tax Deferred “traditional” and well as a Tax Free “Roth” option.  Investment options are provided through the platform “Merrill Lynch” and a list of several options are available across a variety of asset classes for both stocks and bonds.

Inservice Rollovers – For some employees that are still in service and working actively for Stellantis there is a benefit available to them called an “in-service rollover.”  This is an option that allows for an employee to “rollover” or transfer a portion or all their current SESP or HEDPP balance into an IRA.  A consideration of this option involves using an IRA to allow for an unlimited array of investment options which can be tailored into specific strategies that offer options that may not exist in the current Merrill Lynch investment options mix inside of the SESP or HEDPP.  You do not lose the benefits of the SESP or HEDPP including the match from this strategy.

Retirement Rollovers – Once retired and a separation of service from Stellantis occurs employees have the option to “rollover” their current 401k balance into an IRA which allows for more investment options and well and more control over the asset within an IRA as opposed to the limitation of the investment options in the Merrill Lynch investment mix.

Pension – The company (Chrysler at the time) closed its pension plans to new participants at the start of 2004. The freeze did not affect those hired from that point forward or those who have already left the company or retired. All the benefits accrued through Dec. 31 of 2004 remained in place, and employees will not lose what they have earned to that point.  Employees are often offered a “lump sum” option that allows for the total account value to be rolled over into an IRA.  There is an array of employees that fall under different benefit packages with regards to the pension and it is imperative to understand and review all your options to ensure you have maximized this benefit.

Profit Sharing – Stellantis will engage in “profit sharing” with its employees.  When Stellantis has a good year and produces higher revenues, they will typically announce a “profit sharing” with their employees.  This is a predetermined number that each employee who qualifies will receive as “additional compensation” from Stellantis.  In essence Stellantis has excess revenue that allows them to share with their employees.  This is a great benefit, but it is important to understand the tax on this benefit.  This money is added to your paycheck but is reported as income to the employee.  It is important for each employee to understand and navigate the tax implications of this benefit and ways to minimize the tax.