On the other hand, deferring large amounts of tax each year may be a good reason for using a tax-deferred
account for a given asset.
IOVAs are a subset of variable annuity that are, as the name suggests, focused on the investment potential of a tax-deferred
Most of the potential clients with whom I meet have the lion's share of their assets in their taxable and tax-deferred
bucket, and little if any in their tax-free bucket.
If I believe I will be in the 15 percent marginal tax bracket in retirement and I have $18,000 to save in 2015,1 may want to save my first $12,550 in a tax-deferred
account like a 401(k) that avoids current income tax and the remaining $5,450 in tax-free account (Roth) that I pay tax on now, but will grow tax free.
Owning a tax-deferred
asset, like the stock of a good company or fund, in a taxable account is often wiser than holding the same fund or company in a tax-deferred
account like an IRA or 401(k).
Assets in your 401(k) or IRA would be the tax-deferred
Also an investment in limited partnership units of the Partnership were exchanged on a tax-deferred
basis for Explorer Series Fund A/Rollover Series Class Shares with equal value, according to an arrangement between the Partnership and the Mutual Fund Corporation.
* Expected time horizon: The longer an executive's time horizon, the greater the likelihood that the tax-deferred
growth of investing in an IRA will overcome the initial, onetime tax relief provided by the NUA election.
A textbook asset location strategy would put all tax-efficient asset classes in taxable vehicles, and all tax-inefficient asset classes in tax-deferred
It has been informally suggested that Section 1031 tax-deferred
exchanges may result in price premiums being paid for agricultural land.
Likewise, in contrast to the traditional IRA, the Roth IRA permits an individual to make nondeductible contributions to a tax-deferred
account up to the same dollar limits.
When a mutual fund is owned outside of a tax-deferred
retirement account, it is important to consider how a fund's investment activity will result in taxation of the fund investor.