Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (64) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Re: Marriage Penalty Returns Date: 1/22/2013 4:52 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
The idea would be to defer essentially 100% of one of our incomes, to be paid out over a 15 year time span after termination of employment. It would smear those earnings over fifteen years instead of the next five years or so. That way we would revert to a one-income family and not see the marriage penalty.

Enron triggers laws make the deferred income plans very inflexible. Any change to distribution rules require a 5 year wait.

As you noted, the other problem is that the assets of the plan are company assets and not yours. If your employer has financial problems, the assets are subject to claims against your employer.

A living trust covers part of the financial issues, and should be done regardless. For states that have high probate costs, trusts avoid much of the cost of probate. More importantly trusts cover what happens when a trustee or all trustees are no longer able to handle their own financial affairs.

It is not immoral to pay the least amount of taxes required.

Given your income range, were you subject to AMT? If you are, have you taken it into consideration? AMT took back a significant amount of the Bush tax cuts.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (64) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Value Hounds

Kate Spade's Wild Ride
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement