- Froogled By:
- Elias Makere, FSA, MAAA
- Last Froogled:
BUNCHING
This results in adverse tax consequences because – under the progressive tax rate structure –there is a higher effective tax rate in the years that have the larger amount of income. These adverse effects are minimized by: (i) income averaging; and (ii) preferential tax treatment afforded to capital gains.
see income averaging;
Feel free to use it throughout your financial/insurance life.
Sincerely,
www.FroogleMe.com
