How to Maximize Your Executive Benefits for 2026
As the year-end approaches, many executives will need to decide about benefits, salary deferral and plan contributions for 2026.
A well thought-out and flexible plan should take into account your circumstances and goals for the future.
Here are the factors to consider as you make these important decisions.
Salary deferral election for nonqualified plans
A nonqualified deferred compensation plan is not subject to IRS limits on contributions or compensation, which apply to a qualified retirement plan such as a 401(k). This means you can contribute more income to the account.
401(k) contributions
While cash flow considerations also come into play when deciding on contributions to 401(k) plans, the most significant factors include company matching – in most contexts, it makes sense to maximize this – and the fact that annual pre-tax contributions to 401(k) plans are usually limited.
Incentive stock options
Since ISOs may be new terrain for executives joining private companies, it’s important to craft a multi-year plan to use them in a way that serves your goals.
Life insurance plans
Two significant issues can come into play when electing life insurance coverage. The first concerns the coverage itself: is it sufficient for you and your family and is it worth the price? An executive in their 40s or early 50s who is in good health can often purchase better coverage on their own. The second, which is more complex, concerns asset location: do you want to assign the life insurance plan to an irrevocable trust to save your heirs from an estate tax liability?
Disability plans
While many individuals receive substantial disability insurance through their employers, executives often have different compensation patterns: More of it tends to be in bonuses and stock options. Disability insurance won’t reflect these types of compensation.
Personal excess liability coverage
Many clients choose to take out an umbrella policy that offers much more coverage than standard homeowners and auto insurance. Even when it makes sense to purchase this coverage, it’s wise to coordinate the coverage limits on your other policies with the personal excess liability plan.
Tax matters
Beyond the matters covered here, executives may need to consider a wide variety of tax issues, including whether withholding on salary or bonus compensation should be adjusted to account for potential refunds or taxes owed.
Rick Barragan is the Managing Director,
Los Angeles Market Manager, for
J.P. Morgan Private Bank.
[email protected] | (310) 860-3658
privatebank.jpmorgan.com/los-angeles
Source: “How to Maximize Your Executive Benefits for 2026” Robert Fritz, Head of Executive Advisory, October 1st, 2025
