The Robertsons, a couple with an adjusted gross income (AGI) of $28,500, decide to contribute the maximum amount possible toward their individual retirement accounts (IRAs), even though Mr. Robertson is covered by a pension plan where he works. He names his wife the beneficiary of the IRA. What is such a tax strategy called?

Question

Quizplus · Accepted Answer

This tax strategy is called tax deferral, where the Robertsons are deferring paying taxes on their income until they withdraw the funds from their IRAs during retirement.

The Robertsons, a Couple with an Adjusted Gross Income (AGI)