by turning ineffective and inefficient dollars into an effective strategy to eliminate income tax liability on gains with little or no cost. This requires a qualified advisor to work out all the permutations of this great opportunity to find money that is extremely beneficial to the client. Fourth Example: If both people in our married couple are under age 65, the rule becomes the rule of 109-12. Here’s a quick example for your consideration. Let’s say they are 50 years old and contribute to a 401(k) to the tune of $20,000 annually. Let’s also say their income is $80,000 and the current value of their 401(k) is $350,000. You can use Rule 112-12 both ways. What do I mean? I want to show this couple that their 401(k) contributions can save them $1,740 in income taxes and that, at the very least, when they both die, the government will take 30 or 40, or even 50 percent. Take a look and reflect on Regina Ghan’s message from the endorsements page—Is it your intention, as a grandparent, to disinherit your grandchildren? Depending on how your beneficiary forms are structured, this could happen! Do you know what can cause the biggest one-day decline in the value of your Individual Retirement Account? It Has Nothing to Do with Financial Markets! Also, do you know the Real Truth concerning your IRA?
Do you own your IRA? (No) Can you beat the Tax? (No) Is there anything you can do about it? (Yes)
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