If you’re a high earner at Corning, you may have access to an additional retirement savings tool: the Supplemental Investment Plan (SIP). While the plan can offer meaningful tax and savings advantages, it’s also layered with complexity and some very real risks.

So how do you know if it’s the right move for you and your family?

Let’s walk through how the SIP works, what makes it different from your 401(k), and what to consider before making your annual deferral election.

What Is the Corning SIP?

The SIP is a nonqualified deferred compensation plan. In plain terms, it lets eligible Corning employees defer more of their income—up to 75% of base salary and/or bonus—beyond the IRS limits of your 401(k). Your contributions grow tax-deferred, and Corning provides contribution credits that mirror what you’d receive in the Investment Plan.

It’s meant for high-income professionals looking to save more for the future, reduce taxable income today, and build long-term wealth outside of traditional retirement plan limits.

Who’s Eligible?

Eligibility is determined annually and is generally limited to highly compensated, U.S.-based Corning employees who also participate in Corning’s Investment Plan.

If you qualify, you’ll be notified during the enrollment window, typically held in October.

3 Reasons the SIP Can Be a Smart Move

1. You can defer more of your income, tax-deferred.

If you’re already maxing out your 401(k), the SIP allows you to keep saving—up to 75% of your salary and bonus. That can significantly reduce your taxable income now, while allowing your investments to grow over time.

2. You receive additional company contributions.

Corning adds “contribution credits” to your SIP account, just like the matching contributions you’d get in the Investment Plan. Over time, that can meaningfully boost your savings, especially for high earners.

3. You choose how your deferrals are invested.

Your SIP investment options mirror those in the Investment Plan (Vanguard funds and core strategies). That makes it easier to align your asset allocation across both plans.

But Be Cautious: 5 Things to Know Before You Enroll

1. Your decision is locked in for the year.

During open enrollment, you choose how much income to defer, and that choice is irrevocable until next year. If your cash flow changes unexpectedly, you can’t go back and adjust.

2. It’s not protected like a 401(k).

Unlike your 401(k), the SIP is unfunded and unsecured. If Corning were to face financial difficulty, your SIP balance could be at risk. You’re essentially an unsecured creditor of the company.

3. Distributions aren’t flexible.

At the time you enroll, you must also choose how and when your SIP balance will be paid to you, either as a lump sum or in installments over two to five years. This decision can’t be changed later.

4. Vesting rules apply to company credits.

While you’re always fully vested in your own deferrals and earnings, Corning’s contribution credits vest after three years of service.

5. There are real tax implications.

Although income taxes are deferred, FICA (Social Security and Medicare) taxes apply to vested balances. And at distribution, all payments are taxed as wage income, so planning the timing is key.

How We Help Clients at Corning Decide

For many Corning professionals, the SIP can be a powerful tool if it aligns with your cash flow, tax strategy, and long-term goals. We help our clients evaluate:

• Whether deferring income makes sense in a high-income year
• How to coordinate SIP with 401(k), HSA, backdoor Roth, and college savings
• What distribution timing makes the most tax-efficient sense
• How to weigh the benefits against the creditor and liquidity risks

Let’s Talk Through It Together

You don’t have to make this decision alone. If you’re unsure whether to enroll in Corning’s SIP or how it fits into your overall plan, we’ll walk through it with you step by step. From SIP decisions to long-term planning, we help Corning professionals create flexible plans so they can say yes more often to their family, their goals, and their future.

Make the Most of Corning’s SIP is a one-page guide that outlines the key features, risks, and considerations—all in plain English. It’s a helpful snapshot to review as you weigh your options.

Lake Road Advisors, a Fee-Only, independent financial planning firm with offices in Corning, NY, Ithaca, NY and Portland, OR works with clients virtually all across the country. Paul Sydlansky, the founder of Lake Road Advisors LLC, has worked in the financial services industry for 20+ years. Prior to founding Lake Road Advisors, Paul worked at Morgan Stanley in Manhattan for 13 years. While at Morgan Stanley, Paul was a senior-level manager within the Institutional Equities Department. In 2018 he was named to Investopedia’s Top 100 Financial Advisors list. Paul received a Bachelor’s degree in Economics from Marist College and holds an MBA from New York University Leonard N. Stern School of Business. Paul is a CERTIFIED FINANCIAL PLANNER® and a member of the National Association of Personal Financial Advisors (NAPFA) and the XY Planning Network. They can be reached by phone at the Corning, NY office at (607) 438-2914, Ithaca, NY office at (607) 463-8400, or Portland, OR office at (607) 292-2172 or at the firm’s website at https://lakeroadadvisors.com/