Our office is located near Johnson & Johnson's New Jersey operations, (only about 30 minutes by car!) and we regularly work with current and retired J&J employees. If you would like a second opinion on your retirement planning or on any of the topics discussed in this article, you may consider scheduling a complimentary meeting with us.

Employees retiring from Johnson & Johnson often have more complex financial situations than the average retiree. This complexity can stem from:

• Long participation in the J&J 401(k) plan
• Stock-based compensation or company stock holdings
• Pension-related information
• Deferred compensation or executive benefit arrangements
• High income during peak earning years
• The need to coordinate retirement assets with Social Security and other benefits

Rather than focusing on a single decision, many individuals benefit from considering how multiple retirement-related choices interact with one another. A comprehensive financial plan can help frame these decisions in a broader context.

Employees retiring from Johnson & Johnson often have more complex financial situations than the average retiree. This complexity can stem from:

• Long participation in the J&J 401(k) plan
• Stock-based compensation or company stock holdings
• Pension-related information
• Deferred compensation or executive benefit arrangements
• High income during peak earning years
• The need to coordinate retirement assets with Social Security and other benefits

Rather than focusing on a single decision, many individuals benefit from considering how multiple retirement-related choices interact with one another. A comprehensive financial plan can help frame these decisions in a broader context.

For many long-tenured employees, the Johnson & Johnson 401(k) plan represents one of the largest retirement assets they own. Upon retirement or separation from service, several options may be available, including:

• Leaving assets in the Johnson & Johnson 401(k) plan
• Rolling assets into an Individual Retirement Account (IRA)
• Rolling assets into a new employer's plan, if applicable
• Taking distributions, which may have tax consequences

According to the Internal Revenue Service, rollovers completed properly can generally be done without triggering current income taxes, while distributions taken directly may be taxable.

Source: IRS – Retirement Plans FAQs Regarding Rollovers and Transfers

We recommend that individuals consider reviewing all available rollover options as part of a comprehensive financial plan, rather than viewing the 401(k) decision in isolation.

Employer retirement plans often provide a curated menu of investment options. After retirement, some individuals consider whether broader investment flexibility outside the plan may or may not align with their goals.

Factors that may be worth evaluating include:

• Investment selection and diversification
• Expense structures and administrative costs
• Distribution flexibility during retirement
• Required minimum distribution rules

The U.S. Department of Labor provides general guidance on retirement plan features and participant rights.

Source: DOL – 401(k) Plans

We recommend considering how investment structure and flexibility fit into a long-term retirement income strategy rather than focusing solely on short-term performance.

Some Johnson & Johnson employees accumulate company stock through compensation programs or investment elections. While company stock can be a meaningful part of overall wealth, it can also increase concentration risk.

Key considerations may include:

• How much of total net worth is tied to a single company
• How stock holdings align with retirement income needs
• Tax considerations associated with selling or diversifying holdings

Johnson & Johnson provides detailed information for employees and investors on its corporate website.

Source: jnj.com

We recommend that individuals consider evaluating company stock exposure as part of a broader portfolio review, taking into account personal risk tolerance and retirement time horizon.

In addition to the Johnson & Johnson 401(k) plan, many long-term U.S. employees may also be eligible for pension benefits through the company's defined benefit retirement program. Pension benefits offer a type of lifetime income that is distinct from defined contribution plans like 401(k) accounts. According to Johnson & Johnson's own retiree benefits resources, pension eligibility and commencement rules can vary based on age, hire date, and credited service.

The timing of retirement from Johnson & Johnson can influence several financial factors, including:

• Final compensation and bonus eligibility
• Vesting schedules for certain benefits
• Health insurance transition timing
• Initial years of retirement cash flow

Retirement income planning often involves estimating expenses, identifying income sources, and assessing sustainability over time. This process typically includes assumptions that may change.

We recommend considering retirement timing decisions within a written financial plan that models different scenarios rather than relying on a single projection.

Social Security benefits can play an important role in retirement income planning. The age at which benefits are claimed can affect monthly benefit amounts.

The Social Security Administration provides calculators and resources for estimating benefits.

Source: SSA – Retirement Benefits

Factors individuals often consider include:

• Expected longevity
• Other income sources
• Tax considerations
• Survivor benefits

We recommend considering Social Security claiming strategies as part of a coordinated income plan rather than as a standalone decision.

Retirement does not eliminate taxes. For many former Johnson & Johnson executives, tax planning remains an important part of long-term financial management.

Potential areas to review include:

• Taxation of retirement account distributions
• Required minimum distributions
• Capital gains and investment income
• State and local tax considerations in New Jersey

The IRS provides ongoing guidance regarding retirement income taxation.

Source: IRS – Retirement Plans

We recommend that individuals consider tax implications within a long-term planning framework and coordinate with qualified tax professionals.

Retirement is often a natural time to review estate planning documents and beneficiary designations. Changes in employment status, asset structure, and family circumstances can affect how assets are transferred.

Considerations may include:

• Reviewing beneficiary designations on retirement accounts
• Coordinating financial accounts with estate planning documents
• Considering legacy and charitable goals

We recommend that individuals consider estate planning as an ongoing process and consult qualified legal professionals for document preparation and legal advice.

Many retiring executives and long-tenured employees seek a second opinion not because something is wrong, but because retirement represents a major transition.

Common reasons include:

• Desire for an independent review of retirement assets
• Questions about 401(k) rollover implications
• Coordination of multiple income sources
• Planning for longevity and lifestyle changes

A second opinion can provide additional perspective and help individuals feel more confident about their decisions.

Legacy Wealth Advisors is located near Johnson & Johnson’s New Jersey operations and works with clients throughout the region, including current and retired J&J employees.

While proximity alone should not determine advisor selection, local familiarity can make in-person meetings and ongoing communication more convenient for some individuals.

If you are currently employed by Johnson & Johnson or approaching retirement and would like a second opinion on your financial planning, you may consider scheduling a complimentary meeting with our team.