Notes for trust officers, private bankers and others concerned with estate and trust planning, from a Merrill Anderson Senior Editor and his retired mentor.
These tax-deferred accounts are machines for turning tax-favored capital gain into fully taxed ordinary income – income that *must* be realized after reaching a certain age. The cap might do high-income persons a favor.
Unfortunately, the one U.S. taxpayer who has no savings, no investments and no stock options to supplement his $3 million in tax-deferred accounts would have to drive a Buick, not a Bentley.
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These tax-deferred accounts are machines for turning tax-favored capital gain into fully taxed ordinary income – income that *must* be realized after reaching a certain age. The cap might do high-income persons a favor.
Unfortunately, the one U.S. taxpayer who has no savings, no investments and no stock options to supplement his $3 million in tax-deferred accounts would have to drive a Buick, not a Bentley.
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