Serplus question

I haven’t been participating in serplus but with the current layoffs, I am curious if it will beneficial to contribute to the serplus plan in 2023.

I would really appreciate it if you could share pluses and minuses of the plan.

It is a good option to avoid paying high taxes on income that is taxed at high % rate such as bonuses, severance payments and sabbatical/vacation payout (this last one I am not sure). With these types of plans, there is always some concerns about company’s longevity but I believe serplus offers payment over time (over 5 or 10 yrs maybe) and lump sum immediately at the time of departure. Lump sum defeats the purpose.

Please share any info/insights to use this program for max benefit.

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Thank you very much for the additional insights

PROs
Tax Deferral (Maybe)

It's messy. Normally, by deferring you put yourself in a lower bracket. Usually this pays off, but not always. If you move from high tax state to low tax state after leaving Intel that increases the value of the tax deferral (but you have to take 10 year payout to avoid the high tax state chasing you down of the tax).

If you are super high paid exec and defer too much, you create too big of a tax deferred account and could actually end up in higher bracket when you count social security or other retirement income sources (like rental property or other pensions).

Consult a financial advisor to help you model this if you can't make your own projections.

CONs
Default Risk of the Company The Surplus assets are only as good as the solvency of Intel. Normally that shouldn't be a problem with a strong company. However, this IDM 2.0 strategy is a 'moonshot' as the CEO says and if it crashes, the chance of Intel getting into deep financial difficult becomes a real thing.

Thread regarding Intel Corp. layoffs

Serplus question

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