- Job changes and severanceSeverance, rollovers and the year your income changes.Learn more about tax preparation →
- RetirementHow New Jersey taxes pensions, IRAs and Social Security.Learn more about NJ retirement income tax →
- Equity compensationRSUs and ESPP shares when you leave or retire.Learn more about stock options and RSUs →
- Small businessesAccounting for offices and shops along Route 10.Learn more about small business accounting →
Whippany and Cedar Knolls
Hanover Township takes in Whippany and Cedar Knolls. Bayer's U.S. headquarters campus in Whippany is one of the township's largest employers, and Morristown Municipal Airport sits in the Whippany section, with office parks and small businesses along Route 10 and Ridgedale Avenue. Many residents have spent careers at large employers, so changing jobs, taking a package or retiring are the moments when they call us.
Changing jobs or taking a package
- Severance. Severance is taxed as wages. Employers often withhold federal tax at a flat 22%, which may be too low if the payment lands in a year with a full salary.
- 401(k) rollovers. A direct rollover to an IRA or new plan avoids the 20% mandatory withholding on a distribution paid to you. If you separate in or after the year you turn 55, withdrawals from that employer's 401(k) avoid the 10% early withdrawal penalty.
- Unvested and vested equity. What happens to RSUs, options and ESPP shares when you leave, and the best order to sell them. See stock options and RSUs.
- Timing. Deferring a bonus, a Roth conversion in a lower-income gap year, or bunching deductions can all change the result.
Planning for retirement in New Jersey
- Pension and IRA exclusion. New Jersey lets many retirees exclude up to $100,000 of pension, annuity and IRA income ($75,000 for single filers) when total income is $100,000 or less, with a partial exclusion up to $150,000.
- Social Security. Not taxed by New Jersey.
- Property taxes. ANCHOR, Stay NJ and the Senior Freeze can each reduce what you pay. See NJ property tax relief.
Small businesses along Route 10
For professional offices, consultants and shops in Whippany and Cedar Knolls we handle bookkeeping, payroll, business returns and entity planning. See small business accounting.
How we work
Most of our work happens through our secure client portal, by phone and by video call. In-person meetings are available by appointment. We respond within one business day, and we're available Saturdays as well as weekdays.
Frequently asked questions
How is severance pay taxed?
As wages, subject to federal and New Jersey income tax and to Social Security and Medicare tax. Withholding is often a flat 22% federally, which can be too little if you also earned a full salary that year.
Should I roll my 401(k) into an IRA when I leave my job?
Often, but not always. If you leave in or after the year you turn 55, keeping money in that employer's plan lets you withdraw without the 10% penalty. A direct rollover avoids 20% withholding either way.
Does New Jersey tax my pension?
Many retirees can exclude up to $100,000 of pension, annuity and IRA income ($75,000 for single filers) if their total income is $100,000 or less, with a partial exclusion up to $150,000. Social Security isn't taxed.
Do you serve Whippany and Cedar Knolls?
Yes. Both are part of Hanover Township. We work with clients there through our secure portal, by phone and video, with in-person meetings in Mine Hill by appointment.