Another way to generate additional taxable income is through accelerating distributions from IRAs and
tax-deferred annuities.
"Private trustees have long relied on
tax-deferred annuities, but Private Wealth Shield's investment-only platform offers trust and private wealth firms a more powerful solution for mitigating taxes on nonqualified assets, particularly within the high-net-worth market," said John Poulsen, executive vice president of sales strategy at JNLD, in a statement.
A provider of
tax-deferred annuities for industry professionals and their clients, Jackson offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of income, and fixed income products for institutional investors.
Peter Karl and Kurt Kauffman dissect
tax-deferred annuities and their role in tax deferral and estate planning.
The accountant may find all the available deductions but miss the pent-up and growing tax burden lurking inside the
tax-deferred annuities and IRAs that the aging client has no plans to draw upon.
Tax-deferred annuities have a greater potential for growth as the annuity earns interest as it is accumulating and would not have to be taxed until withdrawn.
His goal, he said, was to offer ideas to advisors on how to open up a discussion with seniors--"not to scare them, rather to educate them"--and to introduce them to fixed guaranteed
tax-deferred annuities, which he described as "a nest of dollars they do not want at risk."
in Chicago, Goldstick says that high-net-worth individuals, or those who come into windfalls, can sometimes minimize or delay taxes by deferring income, accelerating or deferring deductions, and buying financial products like
tax-deferred annuities.
NQDC does not include qualified retirement plans,
tax-deferred annuities, simplified employee pensions (SEPs), SIMPLEs, IRC section 501 (c)(18) trusts, section 457(b) deferred compensation plans or any plan described in IRC section 415(m).
Under section 409A, a nonqualified deferred compensation plan is broadly defined as any plan that provides for the deferral of compensation, except for (1) qualified employer plans (such as section 401(k) plans, pension plans and
tax-deferred annuities), and (2) bona fide vacation leave, sick leave, compensatory time, disability pay, or death benefit plans.
However, the cash values from single premium life policies are treated like
tax-deferred annuities, whereby distributions from modified endowment contracts are treated on a last-in, first-out basis.
At First Tech Community Credit Union of Beaverton - the state's second-largest - CEO Tom Sargent said the issue of executive pensions has been a difficult one since federal rules for
tax-deferred annuities at nonprofit organizations changed in 2000.
