As part of the Eli Lilly family, you have access to a range of valuable benefits designed to enhance your present and future well-being. Maximizing these benefits is key to unlocking their full potential.
At Deerfield Financial Advisors, our team of wealth advisors is dedicated to assisting you in leveraging your Eli Lilly benefits to help you reach your financial goals. Explore the following tips to make the most of these opportunities.
Take Full Advantage of Your 401(k) Options
Unless you’re within your first 60 days with Eli Lilly, you should be enrolled in one of the company’s 401(k) options. If you don’t sign up within 60 days, the company may enroll you with a contribution rate of 6%, which is great to take full advantage of the company match. You can also use this company match to help pay any student loans you may have.
Assuming you’re enrolled, are you contributing to your 401(k) and Roth 401(k)? Each has tax advantages, and contributing to both may not be a bad idea, depending on your situation.
You contribute pre-tax dollars to your 401(k), lowering your taxable income and allowing your contributions to grow tax-free. Your distributions after retirement are taxed as ordinary income. The Roth 401(k) takes after-tax contributions, but your money grows tax-free, and your distributions are also free from tax.
You can roll your Roth 401(k) over to a Roth individual retirement account (IRA) when you turn 73 to avoid the required minimum distributions (RMDs) that kick in at that age with the pre-tax 401(k). It’s a good idea to contribute up to the annual limit the IRS allows, which is $23,000 or $30,500 if you’re 50 or older.
Pay Attention to Your Pension Benefit
Eli Lilly benefits include a pension if you’ve worked for the company for at least five years. The amount of your pension is determined by several factors, including:
- Your years of service
- Your earnings at a certain age
- Options for survivor benefits
The longer you work for Eli Lilly and the more you get paid, the higher your pension payout. You can leave the company at 55 years, but your pension is reduced by 6% for each year you fall short of full retirement age.
A wealth manager from Deerfield Financial Advisors can help you weigh your options regarding your pension and other Eli Lilly benefits.
Eli Lilly Benefits for Health and Family
Eli Lilly contributes to a health savings account (HSA) or a health reimbursement account (HRA) based on your medical coverage.
You can contribute pre-tax dollars to the HSA to reduce your taxable income. With this strategy, your money grows tax-free, and withdrawals won’t be taxed if they’re used for qualified medical expenses. The HSA contribution limit is $4,150 for individuals and $8,300 for families; you can’t contribute to an HRA.
You can also save money through a flexible spending account (FSA), which takes up to $3,200 for pre-tax contributions. You can have an FSA for medical and dependent care expenses. You can use a healthcare FSA with your HSA for dental and vision expenses, while an FSA with your HRA can be used for most medical expenses. The money is tax-free.
By contributing pre-tax dollars up to $5,000 to a dependent care FSA (DCFSA), you also can reduce your tax liability and pay for the care of a child under 13 years, a disabled adult, or an elderly parent. However, any money not spent by March 31 is lost.
Other Eli Lilly benefits you can take advantage of include myBestLife and various fitness programs. These company-paid initiatives aim to keep employees healthy, offering perks like assessments, preventive screenings, health and nutrition coaching, education assistance, and gym memberships.
A Financial Professional Can Help You Optimize Your Benefits
The financial professionals at Deerfield Financial Advisors can help Eli Lilly employees make the most of their benefits.
As your finances and career become increasingly complex, you need a holistic financial strategy that helps reduce your stress and increase your productivity. To discover how to use your wealth to create more of what’s worthwhile in your life, call (317) 644-7701 or email mroop@t8j.01f.mywebsitetransfer.com. How can I help you live your WealthwhileSM?
About Matt
Matt Roop is Wealth Manager and Shareholder at Deerfield Financial Advisors, a fee-only financial services and wealth management firm with offices in Indianapolis and Chicago. In his role, Matt acts as a personal “chief financial officer” for his clients, overseeing every facet of their financial landscapes, orchestrating strategies to grow their wealth, and enhancing their financial clarity. Catering to the distinct needs of lawyers, engineers, and business owners, he empowers them to embrace their passions and lead their optimal lives. Matt conveys a depth of experience and a calm demeanor that clients find reassuring and soothing, and he loves providing peace and confidence around their financial future.
Matt received a Bachelor of Science from Indiana University and a Master of Business Administration (MBA) from George Washington University. He is a NAPFA Registered Financial Advisor and holds the CERTIFIED FINANCIAL PLANNER™ and Certified Exit Planning Advisor (CEPA) designations. Committed to staying at the forefront of his field, he is actively involved with the Exit Planning Institute, National Association of Personal Financial Advisors, and the Estate Planning Council of Indianapolis. Since 1997, Matt has been involved in the investment and wealth management realm, with experience at Charles Schwab & Co., Inc., as well as a boutique Indianapolis-based independent advisory firm and a brief stint at his family’s closely held business.
Outside the professional realm, Matt serves his Indianapolis community by volunteering for Meals on Wheels of Hamilton County and is on the Executive Leadership Team for the Indiana Alzheimer’s Association’s Walk to End Alzheimer’s. He is dedicated to financial stewardship and continuous growth, with an unyielding commitment to enhancing the lives of both his clients and his community. Matt and his wife, Kimberly, reside in Carmel, IN, with their four children, who are all pursuing their college dreams. When he’s not working, he enjoys traveling, reading, and spending time at his lake house in southern Indiana with family. To learn more about Matt, connect with him on LinkedIn.
