Raise your hand if you have a significant amount of dollars ($400,000 or more) in a profit-sharing plan, IRA, 401(k) or other qualified plan. Got your hand up? You are in a tax trap. Sorry, but you must pay at least one tax... maybe a double tax. This column explains the horrible tax rules and how to turn the double tax into tax-free dollars.
How to escape the double tax trap of your qualified plan funds
Sorry, but you must pay at least one tax... maybe a double tax Following is the story of a reader of this column (Jack) After a planning meeting with his attorney and CPA, both agreed that Jack's family would receive about only $540,000 out of the $1.5 million he had in his IRA About $960,000 (64 percent) would be lost to the IRS There are many strategies but let's explore the one we use the most, called a "Retirement Plan Rescue" (RPR)