Parker Hannifin
Are your Parker Hannifin awards, deferrals and benefits aligned on one plan?
Your compensation package at Parker can include RSUs, stock appreciation rights or LTIP performance shares, an ACIP bonus, a 401(k) with a 5% match, a Deferred Compensation Plan, and even a legacy pension. The team at Tempo Wealth helps senior Parker employees fit those pieces together into a comprehensive plan.
Prefer to talk it through? Match with an advisor →
Free Guide
How to Build Wealth at Parker Hannifin in 2026
- SARs, LTIP shares and RSUs by level
- The DCP election and the 401(k) match
- Parker stock in the 401(k) and NUA
Got it! You should be redirected momentarily. If not, click here to go directly to the download page.
Oops! Something went wrong while submitting the form.
Equity compensation at Parker runs on a calendar, with stock awards in August and January, share payouts in April and deferral elections in November. Good planning starts with knowing how those dates work together to build a cohesive financial strategy.
Individuals are clients of the firm. They did not receive any compensation for their testimonial. To our knowledge, these clients have no material conflicts of interest arising from their relationship with Tempo Wealth. Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success. Past performance does not guarantee future results. Investing involves risk, including the potential loss of principal.
Where Parker Hannifin benefits get complicated
Each of these four decisions is tied to a date on Parker's calendar or a line on your pay stub.
The November DCP election
November’s deferral election affects next year’s spending money and future tax bills. You’re choosing both how much pay to defer and when Parker pays it back. You can change each year’s payout schedule only once, and doing so means delaying payment by five years.
SAR exercises and the withholding gap
The tax withheld on a SAR exercise may fall short of what you owe. Federal withholding can be just 22%, while the gain counts as compensation income in the exercise year. Leaving Parker can also shorten your exercise window to three months or less, depending on your departure and award terms.
LTIP payouts and your retirement date
A retirement date just before month-end can reduce multiple LTIP awards. Parker generally counts only complete months worked when prorating open awards. Each April payout can also concentrate three years of performance pay in one tax year, with no option to defer it into the DCP.
After-tax savings and the Mega Backdoor Roth
Parker’s 401(k) accepts after-tax contributions of up to 4% of pay, on top of your pre-tax or Roth savings. You can also have those contributions converted to Roth automatically, so their future growth can come out tax-free in a qualified withdrawal.
Seeing your full compensation picture
We bring your pay, stock awards, deferred compensation and retirement benefits into one view, so you can see what is available now and what is committed to later years.
Deciding how much Parker stock to hold
Your salary and part of your wealth may depend on the same company. We look across your Parker holdings and future awards to decide how much exposure fits your goals.
Building an income plan beyond your last paycheck
We connect future award payouts, DCP payments and any pension with your spending needs, so the retirement plan accounts for both when income arrives and when you need it.
Connecting the rest of your financial life
We bring tax, insurance, estate and charitable planning into the same conversation, so compensation decisions reflect the people and causes your money needs to support.
Scenarios we plan for at Parker Hannifin
If you hold Parker stock awards at any level, from RSUs to SARs and LTIP shares, one of these questions may already be on your list.
Time-Sensitive · November Election
“DCP enrollment opens in November. How much of next year's base and ACIP should I defer, and on what schedule?”
Your base salary and ACIP require separate elections, so the same percentage can leave you with very different amounts to spend. Once the window closes, you cannot revise that year's deferral election if your cash needs change.
How Tempo approaches it: We estimate the cash you need next year, size the deferral against a range of ACIP outcomes, and compare lump-sum and installment schedules with your expected brackets, any pension income and your state of residence before the window closes.
Retirement Window · 55+
“I've held the Parker Stock Fund for twenty years. Should I look at NUA before I roll over my 401(k)?”
The plan lets Parker shares come out in kind from both the Parker Stock Fund and the Parker Stock Match Fund, which is what an NUA election needs. The growth above your cost basis may then be taxed at long-term capital gains rates when sold, but only through a lump-sum distribution, and rolling the shares into an IRA gives that option up.
How Tempo approaches it: We look at the basis of the Parker shares lot by lot, set the NUA route beside a full rollover at your likely tax rates, and evaluate whether the election may be advantageous given your other retirement income.
Common Starting Point
“I have three years of SAR grants vested. Which should I exercise, and in which tax year?”
Each grant has its own grant price and ten-year expiration, and the spread at exercise counts as compensation income in that year.
How Tempo approaches it: We rank grants by grant price and time left, estimate how much spread fits in each year's bracket, and plan cash for any tax the flat-rate withholding may not cover.
Retirement Window · 60+
“I'm planning to retire in the next two years. How do my open LTIP awards and SARs change with the date I pick?”
LTIP payouts can continue after retirement. Parker adjusts each award for the full calendar months you worked, then pays it in April after the performance period ends, based on actual results. Your unvested SARs vest at retirement, but their scheduled exercise dates stay the same. You have until expiration to exercise them. Most other departures give you just three months to exercise vested SARs.
How Tempo approaches it: We map every open award and grant against candidate retirement dates, month by month, then set the April payouts, SAR exercises and DCP installments on a year-by-year tax view so the date is chosen with the numbers in front of you.
Parker Hannifin NUA calculator
Compare an NUA election with an IRA rollover using your Parker stock fund totals.
Tips for using this calculator:
- If you include both Parker Stock Fund and Parker Stock Match Fund holdings, add their values and cost bases separately.
- Find total cost basis at the bottom of your Fidelity statement. Use fund dollar values, not PH's market price.
Tax assumptions
Position value
Unrealized appreciation
Estimated tax, ordinary IRA rollover route
Estimated tax, NUA route
- Ordinary income tax on the cost basis, due now
- Capital gains tax on the appreciation, at sale
- 10% early-distribution penalty on the cost basis
Potential difference
An NUA election only applies when the stock leaves the plan as a lump-sum, in-kind distribution after a qualifying event.
There is no appreciation at these inputs.
This tool is educational and simplified. It compares a single lump-sum distribution at the rates you enter, assumes the shares are sold in retirement, and reduces the age-based early-distribution rules to one toggle. It ignores growth after distribution and partial NUA elections. Results are simplified estimates, depend on assumptions entered by the user, and do not predict actual tax consequences. It is not tax or investment advice. Talk to your advisor and tax professional before making any election.
FAQs: Parker Hannifin benefits
What is the Parker Hannifin 401(k) match?
Parker matches 100% of the first 5% of pay you contribute as pre-tax or Roth. You’re fully vested in the match immediately. Parker calculates it each pay period and no longer pays it in company stock. After-tax contributions don’t earn a match.
Does Parker Hannifin have a pension?
Yes, for eligible employees hired before April 1, 2004 who stayed in the plan. Parker bases the benefit on years of service and your highest five consecutive years of eligible pay. Starting payments at 60, for example, triggers an early-start reduction of about 30%.
What retirement benefits does Parker Hannifin offer?
Parker offers a 401(k) with a 5% match, plus after-tax saving and Roth conversion. Employees outside the pension generally have a company-funded Retirement Income Account. Eligible employees can also use the Deferred Compensation Plan.
How does Parker’s Deferred Compensation Plan work?
Eligible employees can defer up to 50% of base pay and 80% of cash incentives, pre-tax, through a November election. Parker also restores 401(k) matching contributions lost to IRS limits. You choose a lump sum or 2 to 15 annual payments, generally after leaving. The balance is an unsecured promise from Parker, with no loans or rollovers.
What stock awards do Parker Hannifin employees receive?
Managers and key contributors receive RSUs, business leaders receive SARs and RSUs, and officers and executives receive SARs and LTIP performance shares. SARs and RSUs generally vest over three years. LTIP awards depend on three-year performance results. Your award agreements control.
Can I use NUA on Parker stock in my 401(k)?
Possibly. Both Parker stock funds allow distributions in shares. With a qualifying lump-sum distribution, you pay ordinary income tax on the cost basis and generally defer tax on the gain until sale. An IRA rollover gives up NUA treatment, but may be preferable if your cost basis is high.
Keep going on Parker Hannifin
From the BlogPlanning considerations for Parker Hannifin executives with RSUs, LTIPs and SARsFrom the BlogHow executives can use NUA to keep more of their company stock gainsFrom the BlogDeferred compensation: the tax timing tool most executives underuse
We work with stock-eligible employees at many companies. See how we specialize →
The content regarding Parker Hannifin employee benefits, including the 401(k) and Retirement Income Account, the pension plan, the Deferred Compensation Plan, SARs, LTIP awards, RSUs, and NUA strategies, is provided for educational purposes only and is not tax, legal, or investment advice. Plan terms change; always confirm details in Parker Hannifin's official plan documents and your own award agreements. Tempo Wealth is not affiliated with or endorsed by Parker Hannifin. All company trademarks are the property of their respective owners. Last reviewed October 2026.
