This Mariner Wealth Advisors wealth management glossary explains, in plain English, the terms corporate executives meet when they hold deferred compensation, concentrated company stock and have little time to manage it. Each entry gives a short definition and then why it matters to you, sometimes with round hypothetical numbers.
Tax-year 2026 limits appear only where a term needs one. Anything else that changes by year says to check the current limit. This is general education, not individualized investment, tax or legal advice, and investing involves risk, including loss of principal.
1
- 10b5-1 trading plan
- A written plan, set when you're not holding inside information, to sell shares on preset dates or prices. Insiders use these plans because trades during blackout windows are otherwise restricted, and changing it later has rules.
A
- After-tax 401(k) contributions (mega backdoor Roth)
- A feature letting you contribute after-tax money to a 401(k) beyond the pre-tax deferral limit, up to the total limit of $72,000 for 2026 including employer money. If the plan allows in-plan Roth conversion, it can build Roth savings quickly.
- Annual bonus deferral
- A cash payment, often a percentage of salary, paid for hitting yearly company or personal targets. It matters because it can be deferred into a nonqualified plan, which changes when you pay tax on it.
B
- Backdoor Roth IRA
- The practice of funding a Roth IRA by making a nondeductible traditional IRA contribution and converting it. High earners above the Roth income limits use it, but existing pre-tax IRA balances can make the conversion partly taxable.
- Basis (cost basis)
- The cost basis adjustment that applies to the price paid for an investment, used to figure taxable gain. For shares from an RSU vest, basis is usually the value taxed as pay at vest, so selling right away often produces little extra gain.
- Beneficiary designation
- The person or entity you name to receive an account or policy when you die. It overrides your will, so an outdated form, such as a former spouse still listed on a 401(k), can send money to the wrong person.
- Blackout period
- A period when insiders can't trade company stock, often before earnings. Blackouts can stop you selling when you want, which is a reason to set up a trading plan ahead of time.
C
- Capital gain
- A tax on investment profit when you sell for more than your basis. Selling $100,000 of stock with a $40,000 basis creates a $60,000 gain, and holding more than a year usually earns a lower long-term rate.
- Catch-up contribution
- The additional amount people aged 50 and over can add to a workplace plan. For 2026 it is $8,000 (total $32,500), or $11,250 at ages 60 to 63. If prior-year FICA wages topped $150,000, the catch-up must be Roth.
- Concentrated stock planning
- A plan to reduce the share of your wealth tied to one stock, usually below a level you set in advance. As a rule of thumb, when more than a fifth of net worth sits in one company, Mariner Wealth Advisors starts planning there before anything else, and estimates the tax bill of each sale first.
- Concentrated stock position
- A large share of your net worth held in one company's stock, often your employer's. It matters because your paycheck, bonus and portfolio can all fall together if that company struggles.
D
- Deferred compensation
- Pay you earn now but receive later, under an agreement that sets the payout date. You generally owe income tax when paid, so a large lump sum in one year can push you into the 37% bracket.
- Deferred compensation planning
- A review of how much of your pay to defer, when to take payouts, and how to handle the company-credit risk. At Mariner Wealth Advisors it starts with your plan's election form and payout schedule, then lays out the tax result of each choice.
- Defined benefit plan (pension)
- A retirement plan that promises a set benefit, usually based on pay and years of service, rather than depending on investment results. Some executives have one from earlier employers, and the choice between a lump sum and monthly payments is hard to reverse.
- Defined contribution plan
- A plan where the balance depends on what you and your employer contribute and how the investments perform, such as a 401(k). The 2026 employee deferral limit is $24,500.
- Diversification
- Spreading money across many investments so one failure does little damage. Holding 500 stocks instead of one cuts the risk that a single company's problems decide your retirement.
E
- Election deadline
- A required date or window by which you must choose how and when a deferred payout is paid. Plans often lock elections the year before the pay is earned, so missing the window can mean waiting another year.
- Equity compensation advice
- Guidance on how and when to exercise options, sell shares and handle taxes from stock-based pay. It begins with a list of every grant, its vest date and its tax treatment, then a plan to sell in an order that smooths income.
- Estate tax exclusion
- The tax-free amount you can leave at death without federal estate tax. For 2026 it is $15,000,000 per person. Most executives fall below it, but company stock growth can change that.
- Executive retirement planning
- A plan covering how to turn savings, pensions, deferred pay and stock into income for life. It sets which account pays first and when each payout starts, so taxes in the first retirement years don't spike.
- Expense ratio and advisory fee
- The percentage of your assets paid to an advisor or fund each year. A 1% fee on $500,000 is $5,000 a year, and over 30 years small differences compound into large sums.
F
- Fiduciary duty
- A legal duty to put a client's interest ahead of your own when giving advice. It describes a standard in law and does not mean any firm holds it unless it says so; ask any advisor to state in writing whether it applies.
H
- Health savings account (HSA)
- A savings account for medical costs with a tax deduction, tax-free growth and tax-free withdrawals for qualified expenses. The 2026 limits are $4,400 self-only and $8,750 family, plus $1,000 at 55 or older.
I
- Incentive stock option (ISO)
- A stock option that can get special tax treatment if you hold the shares long enough after exercising. Exercising many can trigger the alternative minimum tax, so timing matters.
- Income-related monthly adjustment amount (IRMAA)
- A surcharge added to Medicare Part B and D premiums for higher earners, set from income two years earlier. In 2026 a single filer above $109,000 of 2024 income pays more than the $202.90 standard premium.
- Individual retirement account (IRA)
- A personal retirement account with its own annual limit, separate from workplace plans. The 2026 limit is $7,500, or $8,600 at age 50 or older, across traditional and Roth accounts combined.
- Investable assets
- Money you can invest, such as brokerage, retirement and cash accounts, excluding your home and business equity. Mariner Wealth Advisors has a $500K minimum in investable assets for new clients.
M
- Marginal tax bracket
- The federal rate that applies to each slice of income, not all of it. The top rate is 37% above $640,600 for single filers and $768,700 for married filing jointly, so only income over that line is taxed at 37%.
N
- Nonqualified deferred compensation (NQDC)
- A deferred compensation plan that doesn't follow ERISA rules for qualified plans like a 401(k). Your balance is a promise from the company, so you're an unsecured creditor if it fails.
- Nonqualified stock option (NSO)
- Company-granted right to buy shares at a fixed price. If the strike is $50 and the stock is $80, the spread is $30 a share and is taxed when you exercise a nonqualified option.
P
- Payout schedule
- The payment schedule for a pension, annuity or deferred plan, such as five annual installments instead of one lump sum. Spreading $1,000,000 over five years keeps each year's income lower than taking it at once.
R
- Rebalancing
- Resetting your investments to the original mix after prices move. If stocks grow from 60% to 70% of a portfolio, selling some brings you back to 60, and doing it in tax-deferred accounts avoids tax.
- Required minimum distribution (RMD)
- Required withdrawals from most pre-tax retirement accounts. They start at 73, or 75 if you were born in 1960 or later, and missing one brings a penalty; check the current penalty rate.
- Restricted stock unit (RSU)
- A company promise to give you shares after you stay for a period or hit goals. When they vest, the market value counts as pay, taxed as ordinary income; 100 shares at $120 add $12,000 of income.
- Rollover
- Moving the cash in an old employer's plan into an IRA or new plan. A direct rollover, with money going plan to plan, avoids the withholding and the 60-day deadline of a check made out to you.
- Roth conversion
- Moving money from a traditional account into a Roth account and paying income tax on it now. Converting $50,000 when you are in a 32% bracket adds roughly $16,000 of tax; check the current brackets.
- Roth IRA
- Retirement money you take from a Roth IRA is tax-free if rules are met, and no RMDs apply during your life. For 2026, single filers phase out of contributions at $153,000 to $168,000 of income.
T
- Tax-efficient investing
- A strategy of putting money in company-sponsored or personal accounts to reduce what you owe over time, such as placing high-tax assets in tax-deferred accounts. Mariner Wealth Advisors applies it to the whole picture, not each account alone.
- Thrift Savings Plan (TSP)
- Federal retirement savings plan for federal employees and military, with a 2026 deferral limit of $24,500 like 401(k)s. Executives who moved from government service may still hold an old TSP balance.
V
- Vesting
- The point when you own your RSUs, options or employer match outright. If 25% of a grant vests each year, leaving after two years means you keep half of it.