Employment Status: Recently promoted to chief financial officer CFO for Corporate Business Associate 

Starting salary: $400,000

Filling status: Married filling jointly

Marginal Tax rate: 32 percent.

Dependence: spouse and three children

Lisa is finally getting used to her new responsibilities. She was recently promoted to the position of chief financial officer for CBA. Lisa applied for position a few months ago when CBA announced Dave Allan , the former CFO, would be retiring. Lisa had been working as CBA's tax director for 10 years. As a top executive of the company, Lisa now is eligible to participate in CBA's non qualified deferred compensation program. She didn't have this option as a tax director. Lisa knows she would consider both tax and non tax factors when deciding wether and to what extent she participate in the plan.

 

Based on the storyline, makerecommendations to Lisa on how to improve her tax situation in regards to retirement savings. Explain why you are making the recommendations, and how it would improve her financial situation?

Answer rating: 100% (QA)

Given Lisas recent promotion to CFO and her eligibility for CBAs nonqualified deferred compensation program she should carefully consider the tax impl... View the full answer