Series 7: 10.4.3.3. Tax Considerations

10.4.3.3. Tax Considerations

Some customers would like to find investments that will help to either lessen their tax bill or whose proceeds will not raise their tax obligation significantly. This practice is more common among high-income investors who are subject to a high income tax bracket.

Contributing to tax-qualified plans, such as traditional IRAs, work-based qualified retirement plans, and annuities can help reduce taxable income in the year the contributions are made. The earnings in these plans are also tax-deferred, meaning the plan holder does