P&G Retirement Plans: Your Investment Choices

Procter & Gamble (P&G) employees rely on the Savings Plan (401(k)) and Profit Sharing Trust (PST Plan) to build retirement wealth. Understanding your investment options within these plans—and their diversification rules—enables you to craft a strategy aligned with your risk tolerance, time horizon, and P&G-specific risks.  

P&G Retirement Plan Rules

The Savings Plan permits investment across its full menu at any time, providing flexibility to diversify beyond P&G stock. The PST Plan defaults to P&G common stock until age 50, when you can begin diversifying while maintaining a 40% minimum allocation. Below is a summary of options available to P&G employees:  

Money Market

This low-risk option prioritizes capital preservation, with returns tied to short-term interest rates.  

• Money Market Fund: Invests in high-quality, short-term securities (e.g., U.S. government obligations, commercial paper, CDs) for stability and same-day liquidity.

Fixed Income

These funds deliver steady income, with risk primarily from interest rate fluctuations—short-term options being more stable than long-term.  

• U.S. Short-Term Bond Index Fund: Tracks the Barclays U.S. 1-3 Year Government/Credit Bond Index, holding short-term government and credit bonds for cost-effective stability.  

• U.S. Intermediate-Term Bond Index Fund: Mirrors the Barclays U.S. Aggregate Bond Index with investment-grade bonds (e.g., government, corporate, mortgage-backed) for income and moderate growth.

Real Return

This multi-asset fund targets real returns from an inflation perspective, offering diversified exposure.  

• Real Return Fund: Blends TIPS (45%), global REITs (40%), and commodities (15%), tracking a multi-asset index with low equity correlation.

Equities

Growth-oriented funds carry higher volatility linked to market performance.  

• Large Cap Equity Index Fund: Replicates the S&P 500 with U.S. large-cap stocks.  

• Global Equity Index Fund: Follows the MSCI ACWI IMI, spanning U.S. and non-U.S. equities across developed and emerging markets.  

• International Equity Index Fund: Tracks the MSCI ACWI ex-U.S., investing in ~6,000 foreign stocks.  

• Small Cap Equity Fund: Mirrors the Russell 2000 with U.S. small-cap stocks for elevated growth potential.  

• Procter & Gamble Stock: P&G common stock, offering shareholder stakes with long-term growth and dividend income.

Pre-Mixed Portfolios

Pre-set allocations blend the funds above to match your risk preference, rebalanced monthly.  

• Income (Pre-Mixed A): 45% intermediate bonds, 20% real return, 20% global equity, 15% short-term bonds—stability-focused.  

• Growth & Income (Pre-Mixed B): 40% global equity, 35% intermediate bonds, 15% real return, 10% short-term bonds—balanced approach.  

• Growth (Pre-Mixed C): 75% global equity, 15% real return, 10% intermediate bonds—growth-driven.

Selecting the right investment mix depends on factors like your risk tolerance, time horizon, market conditions, and diversification needs. Vaultis Private Wealth excels in navigating P&G’s retirement plans. Contact us to optimize your PST diversification or Savings Plan strategy with expert, P&G-specific advice.  

Disclosure: This blog provides educational insights, not personalized financial, tax, or legal advice. Investments involve risks, including potential loss of principal—values may fluctuate, and past performance does not guarantee future results. Diversification and asset allocation do not ensure profit or protect against loss in declining markets. Options like P&G stock or pre-mixed portfolios carry specific risks, such as concentration or market volatility. Tax outcomes, including strategies tied to PST diversification, vary by individual circumstances; consult a tax professional. Vaultis Private Wealth is not affiliated with P&G, and views expressed are ours alone. Contact a financial advisor before making investment decisions.

Understanding Your LTIP Options at Procter & Gamble

As a Procter & Gamble (P&G) employee, you have a unique opportunity to shape your financial future through the Long-Term Incentive Program (LTIP). This program lets you customize your compensation to fit your personal goals, a flexibility few companies offer. In this blog, we’ll break down your LTIP options, weigh their pros and cons, and guide you toward a choice that aligns with your needs.

What Are LTIP Options?

P&G’s LTIP rewards your contributions to the company’s success while aligning your interests with shareholders’. Eligible employees can receive awards as Stock Options, Restricted Stock Units (RSUs), or a mix of both, based on a cash equivalent value set by P&G.

• Stock Options grant you the right to buy P&G stock at a fixed grant price over a 10-year term, profiting if the stock price rises above that price. Their value depends on stock growth and an estimated cost set at grant. 

• Restricted Stock Units (RSUs) deliver a set number of P&G shares after a 3-year vesting period, calculated by dividing the cash value by the grant-date stock price. They earn dividend equivalents during vesting and convert to shares automatically.

Your LTIP Choices

You can choose how your LTIP award splits between Stock Options and RSUs:  

1. 100% Stock Options

2. 75% Stock Options, 25% RSUs

3. 50% Stock Options, 50% RSUs

4. 25% Stock Options, 75% RSUs

5. 100% RSUs

Let’s examine each component’s pros and cons.

Stock Options

Pros:

• High upside if P&G stock grows significantly 

• You control exercise timing (between years 3 and 10), managing income and taxes  

• No tax at grant

Cons:

• Worthless if stock price falls below grant price 

• Requires active management and decision-making

• Higher risk compared to RSUs

Restricted Stock Units (RSUs)

Pros:

• Guaranteed value as long as P&G stock has any value

• Simple—no action needed for delivery

• Dividend equivalents add value during vesting 

• Lower risk

Cons:

• Less upside than Stock Options  

• Fixed delivery and tax timing (year 3) 

Choosing the Right Mix

The best blend of Stock Options and RSUs hinges on your financial situation, risk tolerance, and long-term goals. Consider these factors: 

• Risk vs. Value: Stock Options offer greater upside but more risk; RSUs provide stability with less potential reward.

• Time Horizon: Options span 10 years, ideal for long-term growth; RSUs deliver in 3 years, suiting shorter needs.

• Portfolio Balance: How much P&G stock do you hold? Diversification matters.

• Stock Outlook: Past trends (not predictors) and your view of P&G’s future can guide you.

• Cash Flow Needs: RSUs offer predictable year-3 income; Options flex for later goals like retirement or big expenses.

Align your choice with your broader financial plan—home purchases, education, or retirement—and monitor overlapping grant cycles (e.g., RSUs vesting, options expiring).

LTIP decisions are complex and impactful. Vaultis Private Wealth specializes in P&G employees’ unique needs, helping you analyze your options, assess risks, and build a strategy for long-term success. Contact us to optimize your LTIP.

Disclosures:

The information in this blog is for educational purposes only and is not intended as personalized financial, investment, tax, or legal advice. The LTIP options discussed may not be suitable for everyone, as individual financial goals, risk tolerance, and circumstances differ. Consult a qualified financial advisor, tax professional, or legal advisor before acting to evaluate your specific situation and determine if these options fit your needs. Past performance of P&G stock does not guarantee future results, and investments in Stock Options and RSUs involve risks, including the potential loss of principal. Tax laws may change, potentially affecting the strategies described; this content reflects laws as of December 13, 2024. Vaultis Private Wealth does not guarantee the accuracy, completeness, or outcome of this information and is not affiliated with Procter & Gamble, which does not endorse this content or compensate Vaultis for any services mentioned.

The Frank Duke PST Distribution Strategy

The Frank Duke PST Distribution Strategy offers Procter & Gamble (P&G) employees a powerful way to optimize their retirement assets. Named after Frank Duke, a former P&G employee, this two-step approach leverages the Profit Sharing Trust (PST) and IRS tax provisions to potentially boost after-tax value. By pairing Net Unrealized Appreciation (NUA) with a 60-day rollback, it’s tailored for retirees seeking tax efficiency and flexibility from their PST holdings.

What Is the Frank Duke Method?

This strategy combines NUA—a tax-advantaged method for distributing employer stock—with a partial IRA rollback. Step one: take a lump-sum PST distribution, splitting it between P&G shares (common or preferred, though typically preferred are targeted) moved to a taxable account via NUA and a rollover to an IRA. Step two: within 60 days, roll back a portion of the taxable account shares—often exceeding the stock’s $6.82 per share cost basis for preferred shares—into an IRA. The cost basis is taxed as ordinary income in the distribution year, but the rollback offsets this hit. While the NUA shares qualify for lower long-term capital gains rates when sold, this approach enhances tax savings and flexibility.  

Potential benefits include:  

• Tax savings by shifting appreciation to capital gains rates  

• Diversified account types (taxable and tax-deferred)  

• Greater flexibility for lifestyle funding  

• Broader investment options beyond PST limits  

• Enhanced estate planning opportunities

For NUA basics, see our post: vaultis.com/procterandgamble/nua

How It Works

Here’s the mechanics in action:  

Step 1: Lump-Sum Distribution  

• Distribute the entire PST balance in one tax year, typically after retirement or separation.  

• Split the distribution: roll most assets into an IRA, transfer P&G shares—most often preferred, with their $6.82 cost basis—to a taxable account using NUA.  

• Full distribution is key to qualify for NUA’s tax treatment.

Step 2: Partial Rollback  

• Within 60 days, roll back a portion of the taxable account funds into an IRA—often more than the cost basis ($6.82 × shares for preferred).  

• This reduces the immediate ordinary income tax, deferring it to the IRA, while NUA remains taxable at capital gains rates upon sale.

Key Considerations:  

• Timing: The lump-sum distribution must occur after a triggering event—separation, reaching age 59½, or death—to qualify for NUA treatment.  

• 60-Day Window: The IRS enforces this strictly—plan ahead.  

• Precision: Mistakes risk losing tax benefits, so execution is critical.

Tax Advantages with NUA

The Frank Duke method shines by blending NUA and rollback. NUA can apply to common or preferred shares, but preferred shares—with their low $6.82 cost basis—are most often targeted for their significant appreciation. The basis is taxed as ordinary income upfront; the rollback offsets this immediate tax hit by moving funds back to an IRA, potentially dropping the taxable basis of the remaining shares to near zero. Those shares, now in the taxable account, can be sold at long-term capital gains rates—often 15-20% versus ordinary rates up to 37%. For P&G retirees with decades of preferred share growth (contributions ended 2024), this can mean substantial savings.  

For example, consider a PST with $1 million in preferred shares at $170 each—5,882 shares. The cost basis is $40,115 (5,882 × $6.82), taxed as ordinary income that year. Rolling back at least $40,115 of P&G shares’ value from the taxable account to an IRA offsets this tax hit entirely, leaving the remaining shares—worth $959,885 in NUA—in the taxable account. Here’s what happened: you shifted nearly $1 million from your retirement account, which would have been taxed as ordinary income upon distribution, to just under $1 million (after the rollback) now treated as long-term capital gains when sold—potentially saving thousands.

Pairing with a Donor-Advised Fund (DAF)

For charitably inclined retirees, a DAF complements or replaces the rollback:  

• Post-NUA, donate appreciated P&G shares to a DAF.  

• Claim a deduction for the full market value, offsetting the $40,115 ordinary income from the cost basis.  

• Avoid capital gains tax on the appreciation, growing funds tax-free in the DAF for future giving.

This aligns tax savings with philanthropy—a win for retirees who value giving.

Is It Right for You?

The Frank Duke method suits many P&G employees looking to optimize their PST distributions. Its complexity—timing, rollback precision, tax interplay—demands expertise. At Vaultis Private Wealth, we specialize in P&G retirement plans, helping you assess and execute this strategy to maximize your PST’s potential. Contact us to see if it fits your retirement goals.

Disclosures:

The information in this blog is for educational purposes only and is not intended as personalized financial, tax, or legal advice. The Frank Duke PST Distribution Strategy may not be suitable for everyone, as individual financial goals, risk tolerance, and circumstances differ. Consult a qualified financial advisor, tax professional, or legal advisor before acting to evaluate your specific situation and determine if this strategy fits your needs. Past performance does not guarantee future results, and all investments involve risks, including the potential loss of principal. Tax laws and regulations may change, potentially affecting the strategies described. Vaultis Private Wealth does not guarantee the accuracy, completeness, or outcome of this information and is not affiliated with Procter & Gamble, which does not endorse this content.

Managing Concentrated Stock Positions for P&G Employees

As a long-standing employee of Procter & Gamble, you've likely accumulated a significant position in P&G stock over the years. This concentration, often amplified through the Profit Sharing Trust & Employee Stock Ownership Plan (PST Plan), can be both a blessing and a potential risk to your financial future. Today, let's explore the nuances of holding a concentrated stock position and why it's crucial to consider diversification, especially as you approach retirement.

Understanding Your P&G Stock Position

Your P&G stock holdings represent more than just financial value – they're a testament to your dedication and the company's success. However, it's important to note that the PST Plan does have some limitations on diversification, especially for employees under 50. While these restrictions ease after age 50, they underscore the need for thoughtful planning throughout your career.

The Hidden Risks of Concentration

While P&G has a strong history of performance, holding a large portion of your wealth in any single stock comes with inherent risks:

• Volatility: Your portfolio may experience significant swings based on P&G's performance.

• Company-Specific Risk: Events unique to P&G could disproportionately impact your wealth.

• Sector Risk: The consumer goods industry's performance heavily influences your portfolio.

• Opportunity Cost: You might miss out on growth in other sectors or asset classes.

• Emotional Bias: Strong company loyalty can sometimes cloud objective financial decision-making.

The Retirement Perspective

As retirement approaches, managing a concentrated stock position becomes even more critical:

• Shortened Recovery Time: You have less time to bounce back from potential market downturns.

• Sequence of Returns Risk: Retiring with a concentrated position can expose you to significant risk if the stock underperforms early in your retirement, potentially depleting your portfolio faster than anticipated.

• Net Unrealized Appreciation (NUA) Opportunities: Properly timing the distribution of your P&G stock from your retirement plan can potentially result in significant tax savings through the NUA strategy, which allows for preferential tax treatment on the appreciation of employer stock.

Strategies for Risk Management

Consider these approaches to balance your P&G loyalty with prudent financial planning:

• Gradual Diversification: As restrictions allow, systematically diversify your holdings.

• Holistic Portfolio View: Consider your PST holdings in context with your other investments.

• Tax-Efficient Strategies: Explore options like donating appreciated shares to charity.

• Option Strategies: In some cases, sophisticated options can help hedge risk (requires expertise).

Navigating the complexities of a concentrated stock position, especially within the framework of P&G's benefits, requires specialized knowledge. An advisor who understands the nuances of your situation can provide invaluable assistance in creating a strategy that honors your company loyalty while safeguarding your financial future.

At Vaultis Private Wealth, we specialize in helping P&G employees like you balance the rewards and risks of concentrated stock positions. Our team understands the unique aspects of P&G's compensation and benefits structure, allowing us to offer tailored advice that aligns with your specific situation and goals.

Disclosures:

Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. There is no guarantee that any investment strategy will achieve its objectives. The information provided is not intended to be tax advice. Please consult a tax professional for specific tax advice. This article is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or investment products. Always seek the advice of a qualified financial advisor with any questions you may have regarding your financial situation.

P&G's PST Plan Update: Farewell to Preferred Shares

Procter & Gamble (P&G) recently announced a pivotal update to its Profit Sharing Trust (PST) Plan, signaling the end of an era. After decades of allocating preferred shares to employee retirement accounts, P&G has depleted its reserves of these shares. This shift alters future PST contributions and carries distinct implications for employees based on their tenure.

What’s Changing?

Going forward, PST contributions will consist solely of P&G common shares, replacing the prior mix of common and preferred shares. This change stems from the exhaustion of P&G’s preferred stock pool, finalized in 2024.

Impact on Tenured Employees

For long-serving P&G employees, this update brings nuanced considerations:  

• Net Unrealized Appreciation (NUA) Strategy: The NUA opportunity—allowing tax savings via long-term capital gains rates on company stock appreciation—remains intact. However, with preferred shares (fixed $6.82 basis) no longer added, the tax advantage may lessen slightly as common shares (with market-based cost basis) dominate.  

• Retirement Planning: The shift to common shares will gradually reshape PST account composition, prompting a review of retirement strategies and diversification options.
  

Impact on Newer Employees

For those early in their P&G careers, the effects are more pronounced:  

• Reduced NUA Appeal: With minimal or no preferred shares in their PST accounts, newer employees will see less NUA benefit, diminishing its role in tax planning.  

• Long-Term Focus: Alternative tax-efficient strategies—beyond NUA—will take priority, emphasizing traditional retirement planning tailored to common stock allocations.

P&G’s move away from preferred shares reflects an evolving retirement benefit landscape. Staying informed and proactive is key to aligning your financial plan with these changes.  

At Vaultis Private Wealth, we specialize in navigating P&G’s unique benefits. Whether you’re a tenured employee maximizing NUA or a newer hire exploring fresh approaches, our advisors offer tailored guidance. Contact us for a personalized consultation to adapt your retirement strategy to this update and your financial goals.

Disclosures:

The information provided in this blog is for informational purposes only and does not constitute financial, tax, or legal advice. Please consult with a financial advisor or tax professional for advice specific to your situation. Past performance is not indicative of future results. The value of investments can go down as well as up, and you may not get back the amount you originally invested. Investing involves risk, including the potential loss of principal. Diversification does not guarantee a profit or protect against loss in a declining market. The tax implications of the NUA strategy and other retirement planning strategies can vary based on individual circumstances. It is important to consult with a tax professional to understand the specific tax implications for your situation. Vaultis Private Wealth is not affiliated with Procter & Gamble (P&G). The views expressed in this blog are those of the author and do not necessarily reflect the views of P&G.

Optimizing Retirement Distribution Strategies for Procter & Gamble Employees

As you near retirement after a career at Procter & Gamble (P&G), effectively utilizing your retirement savings becomes essential to sustaining your lifestyle. This article explores three strategic approaches to maximize your P&G retirement benefits, each tailored to factors like your financial situation, retirement age, and goals. Understanding these options empowers you to optimize distributions, manage tax liabilities, and meet your lifestyle needs with confidence.

Maintain Assets in Existing Retirement Plans 

Summary: Keep funds in your P&G Savings Plan (401(k)) and Profit Sharing Trust (PST) post-retirement, taking distributions as needed.

Advantages: • Flexibility to adjust withdrawals based on your needs  • Typically lower fees than retail investment options

Considerations: • Distributions are taxed as ordinary income • Limited investment options compared to an IRA

Partial Distribution Strategy (for retirements between ages 55 and 59½)

Summary: Retain preferred shares and sufficient cash or investments in the PST, rolling over the remainder to an IRA.

Advantages: • Penalty-free PST distributions after age 55 from your qualified retirement plan   • Preserves low-basis preferred shares for future tax benefits (e.g., NUA)   • Enables diversification through an IRA   • Maintains the option to pursue Net Unrealized Appreciation (NUA) later

Considerations: • Managing multiple accounts adds complexity • Requires careful planning to avoid IRA withdrawal penalties before 59½

Total Distribution with NUA Strategy

Summary: Take a lump-sum distribution, applying NUA tax treatment to P&G stock, optionally paired with a Duke Rollback to offset cost basis tax or Donor-Advised Fund (DAF) contribution, and roll non-NUA assets into an IRA.

Advantages: • Significant tax savings on appreciated P&G stock via long-term capital gains rates • Flexibility to diversify investments after distribution • Combines NUA benefits with IRA access for optimized tax management

Considerations: • Immediate ordinary income tax on the stock’s cost basis (often $6.82 per share) • Loss of tax-deferred growth on distributed assets • Demands precise tax planning to manage complexity and fees across accounts—mistimed moves risk higher taxes

Note: For retirements before age 59½, this strategy requires alternative income sources to avoid IRA penalties until 59½, when penalty-free IRA access enhances flexibility.

Recommended Next Steps

To make the most of your P&G retirement benefits:

1. Assess these strategies against your retirement goals 

2. Review your current Savings Plan, PST balances, and P&G stock holdings  

3. Consult a financial advisor familiar with P&G’s retirement plans to craft a personalized approach

Your P&G career has built a strong foundation of retirement benefits. Selecting the right distribution strategy can ensure these assets support your desired lifestyle, paving the way for a confident transition into retirement after years of dedicated service.

At Vaultis Private Wealth, we specialize in the unique retirement planning needs of Procter & Gamble employees. Our experienced advisors help P&G professionals navigate these complex strategies to optimize their benefits. Ready to explore how these options fit your situation or discuss other possibilities? Contact us for a complimentary consultation.

Disclosures:

The information in this article is for educational purposes only and is not intended as personalized financial, investment, tax, or legal advice. The strategies discussed, including NUA and the Frank Duke approach, may not be suitable for everyone, as individual financial goals, risk tolerance, and circumstances differ. Consult a qualified financial advisor, tax professional, or legal advisor before acting to evaluate your specific situation and determine if these strategies fit your needs. Past performance does not guarantee future results, and all investments involve risks, including the potential loss of principal. Tax laws and regulations may change, potentially affecting the strategies described; this content reflects laws as of March 17, 2025. Vaultis Private Wealth does not guarantee the accuracy, completeness, or outcome of this information and is not affiliated with Procter & Gamble, which does not endorse this content or compensate Vaultis for any services mentioned.

The Net Unrealized Appreciation Opportunity for P&G Employees

As a Procter & Gamble (P&G) employee, you’ve earned a unique benefits package through years of service at a company with a rich legacy. One standout opportunity within this package is Net Unrealized Appreciation (NUA)—a tax strategy that could significantly reduce your tax burden and maximize retirement savings. This blog explores how NUA works with P&G’s Profit Sharing Trust (PST), particularly its preferred shares, offering a powerful tool for your retirement planning.

What Is Net Unrealized Appreciation? Net Unrealized Appreciation (NUA) is the growth in value of employer stock—like P&G shares—held in a tax-deferred retirement account, such as the PST. When you retire or leave P&G, NUA allows you to potentially benefit from favorable tax treatment by shifting this appreciation from ordinary income to lower long-term capital gains rates.

The P&G Profit Sharing Trust Advantage: P&G’s PST stands out as a retirement vehicle, blending company contributions of common and preferred shares. The preferred shares, with a low cost basis of $6.82 per share, are especially valuable for NUA. Though P&G stopped contributing preferred shares in 2024, those accumulated earlier remain a key asset, amplifying the tax-saving potential of this strategy.

How NUA Works Under the Tax Code

The NUA strategy hinges on IRS rules that favor employer securities distributed from qualified plans like the PST. Here’s how it unfolds:

• Lump-Sum Distribution: To qualify, you must take a full PST distribution within one tax year, triggered by separation, reaching age 59½, or death (IRC Section 402(e)(4)). 

• Cost Basis Taxation: The stock’s cost basis—$6.82 per share for preferred shares—is taxed as ordinary income in the distribution year (if no tax-minimizing strategy is implemented), reported on Form 1099-R.  

• NUA Taxation: The appreciation (market value minus cost basis) is deferred and taxed at long-term capital gains rates when sold, regardless of holding period post-distribution.  

• Post-Distribution Gains: Any further growth after distribution is taxed as short- or long-term capital gains, based on how long you hold the shares.  

• Penalty Note: If under 59½, the cost basis incurs a 10% early withdrawal penalty (though strategies like the Duke Rollback or DAF can be considered to avoid this), but the NUA portion is exempt.

These tax nuances make NUA a compelling option for P&G employees with significant stock appreciation.

Applying NUA at P&G 

Here’s how P&G employees can use NUA:  

1. Take a Lump-Sum Distribution: Withdraw your entire PST balance in one tax year.  

2. Transfer Preferred Shares: Move these shares to a taxable brokerage account.  

3. Pay Tax on Cost Basis: Ordinary income tax applies only to the $6.82 per share basis (if no tax-minimizing strategy is implemented).  

4. Defer NUA Taxes: The appreciation remains untaxed until you sell.  

5. Sell and Save: When sold, the NUA is taxed at long-term capital gains rates—often lower than ordinary rates.
   

Tax Benefits of NUA 

• Lower Rates: Long-term capital gains rates (typically 15-20%) can save you money compared to ordinary income rates (up to 37%), especially in higher brackets.  

• Tax Deferral: Delaying tax on the NUA gives you control over when to realize the gain, enhancing flexibility.

Key Considerations 

NUA isn’t a one-size-fits-all solution. Weigh these factors: 

• Age: Under 59½? The cost basis faces a 10% penalty—plan alternative income sources.  

• Financial Picture: NUA shines brightest within a broader retirement strategy, not in isolation.  

• Tax Rate Risks: Future tax law changes could alter its advantages—timing matters.  

• Complexity: Precise execution is critical; mistimed distributions risk higher taxes.
  

Why It Matters for P&G Employees

With preferred shares’ low $6.82 cost basis, NUA offers a rare chance to unlock PST value efficiently. Optional strategies like the Duke Rollback or charitable giving can enhance NUA’s benefits. It’s a complex strategy, but when paired with careful planning, it can transform your P&G stock into a tax-efficient retirement asset.

If you’re nearing retirement or planning to leave P&G, evaluating NUA is a smart step. At Vaultis Private Wealth, we specialize in P&G’s unique benefits, guiding employees through strategies like NUA to optimize their financial future. Contact us for a complimentary consultation to see if NUA fits your goals.

Disclosures:
The information in this article is for educational purposes only and is not intended as personalized investment, tax, or legal advice. The Net Unrealized Appreciation (NUA) strategy may not be suitable for everyone, as individual financial goals, risk tolerance, and circumstances differ. Consult a qualified financial advisor, tax professional, or legal advisor before acting to evaluate your specific situation and determine if this strategy fits your needs. Tax laws and regulations are complex and may change, potentially affecting the strategies described. This content reflects tax laws as of March 17, 2025, and future changes could impact outcomes. Past performance does not guarantee future results. All investments involve risks, including the potential loss of principal, and values may fluctuate. The description of the P&G Profit Sharing Trust (PST) reflects current plan details as understood by Vaultis Private Wealth and may change. Refer to official PST documents for the most accurate, up-to-date information. Vaultis Private Wealth does not guarantee the accuracy, completeness, or outcome of this information and is not affiliated with Procter & Gamble, which does not endorse this content. Verify the qualifications of any advisor before engaging their services.

A Guide to P&G's Retirement Plans

As a Procter & Gamble (P&G) employee, you’re equipped with two powerful retirement plans to secure your financial future: the Profit Sharing Trust & Employee Stock Ownership Plan (PST Plan) and the Savings Plan. This guide breaks down both plans and offers tips to maximize their benefits for your retirement goals.

The PST Plan: A Company-Funded Ownership Benefit

The PST Plan is a standout feature of P&G’s benefits, fully funded by the company to reward loyalty and promote ownership. Here’s what defines it:  

• Annual Contributions: Each year (July 1–June 30), P&G contributes to your PST account with cash for Common Stock and Preferred Stock shares, aligning your success with the company’s growth.  

• Stock Details: Common Stock carries its purchase-date cost basis, while Preferred Stock has a fixed basis of $6.82—valuable for tax planning.  

• Diversification: At age 50, you can diversify investments, keeping at least 40% in P&G stock.  

• Vesting: You’re fully vested after 4 years of service plus 1,000 hours in your 5th year—or earlier upon age 65, disability, or death—encouraging long-term commitment.

The Savings Plan: Your Flexible 401(k) Option

The Savings Plan complements the PST Plan, letting you take charge of your retirement savings:  

• Employee Contributions: Deduct pre-tax or Roth 401(k) contributions from your paycheck—up to 50% of pay or the IRS limit ($23,500 in 2025, plus $7,500 catch-up if 50+; $11,250 catch-up if 60–63). Auto-enrolled in pre-tax, but you can adjust or opt out anytime.  

• Immediate Vesting: Your contributions are 100% yours from day one—no service requirement.  

• Investment Choices: Pick from 12 options to diversify your portfolio beyond P&G stock.  

• Rollovers: Consolidate prior employer plans or IRAs into this plan, fee-free, for streamlined management.

Maximizing Your P&G Retirement Plans

To optimize these benefits, consider:  

• Engage Both Plans: The PST Plan grows with company contributions, but adding to the Savings Plan accelerates your savings.  

• Stay Educated: Use P&G’s plan guides and Financial Education Center to master your options, or consider working with an advisor who understands P&G. 

• Adjust Regularly: Review your Savings Plan investments to match your evolving goals.  

• Track P&G Performance: The PST Plan ties your wealth to P&G’s success—monitor its stock and strategy.

P&G’s retirement plans lay a strong foundation for your future. Understanding and leveraging the PST and Savings Plans can help you build a robust retirement portfolio.

Navigating these plans can be intricate. Vaultis Private Wealth specializes in guiding P&G employees through their unique benefits. Our team offers personalized advice to align your PST and Savings Plans with your long-term goals. Contact us to enhance your retirement strategy.

Disclosures:

The information in this blog is for educational purposes only and is not intended as personalized financial, investment, tax, or legal advice. The retirement plans discussed may not be suitable for everyone, as individual goals, risk tolerance, and circumstances vary. Consult a qualified financial advisor, tax professional, or legal advisor before acting to evaluate your situation. Past performance does not guarantee future results, and investments involve risks, including potential loss of principal. Tax laws may change, potentially affecting these plans; this content reflects information as of September 28, 2024. Vaultis Private Wealth is not affiliated with Procter & Gamble, which does not endorse this content or compensate Vaultis for any services.