Are you lucky enough to be rich (my definition of rich: you are irrevocably in the highest income tax bracket and highest estate tax bracket)? Is one of your significant assets a large amount (about $1 million or more) in a qualified plan: like an IRA, 401(k) plan, profit-sharing plan or similar plan?
Nice! Those big dollar numbers in your plan sure look good. But did you ever do the dreadful tax math? Let’s do it together. To make it easy, suppose you take one dollar out of y