Which types of assets go into tax-deferred
territory and which assets work better in taxable accounts?
Sales of traditional variable annuities have taken a substantial hit in recent years, but a subset of the product class continues to attract clients who are set on increasing tax-deferred
savings potential in pre-retirement years.
To understand why, we have to refer back to a key concept from "The Power of Zero": In a rising tax rate environment, you want to have carefully prescribed amounts of money in your taxable and tax-deferred
Qualified Retirement Plan accounts that offer an immediate tax deduction we call "tax-deferred
" and those that don't we call "tax-free".
There is often confusion about the benefits and mathematics of tax deferral, as well as pretax savings, because sometimes a tax-deferred
account or investment only defers one from paying potentially more down the road.
These buckets include taxable, tax-deferred
and tax-free assets.
Pathway Quebec Mining 2011 Inc, the general partner of Pathway Quebec Mining 2011 Flow-Through Limited Partnership (the Partnership) and Pathway Multi Series Fund Inc (the Mutual Fund Corporation) stated on Thursday that the transfer and sale (the Rollover Transaction) of all the Partnership's assets (excluding cash) has been completed on a tax-deferred
basis to the Mutual Fund Corporation.
The decision boils down to whether the immediate tax benefit of the NUA election outweighs the longer-term benefit of growing diversified assets tax-deferred
in an IRA.
New research shows that tax deferral can potentially increase returns on tax-inefficient assets by as much as 100 bps--without any subsequent increase in risk--simply by locating assets based on their tax treatment between taxable and tax-deferred
This study evaluates agricultural land sales in Nebraska associated with Section 1031 tax-deferred
exchanges and quantifies price differentials between exchange and nonexchange sales.
Under this Act, the primary purpose of the Individual Retirement Account, or IRA, was to give those individuals not covered by an employer's retirement plan the opportunity to save for retirement on their own by establishing tax-deferred
accounts with private financial institutions.
The exchange of shares between funds in the same fund family also results in either a capital gain or loss (see Tax-Deferred
Retirement Accounts on page 190 for exceptions to these rules).