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Frank is offering Stacy the house and half their regular assets.
The 400Ks have current annual earnings of $400K, $400K in regular IRAs, and $400K in regular assets.
The couple has $700K in regular assets, which they invest conservatively and expect to earn 3% after inflation.
Her resources consist of a $1,500 monthly Social Security check, $200,000 in regular assets and $300,000 in retirement funds.
The first table below shows how much each couple's discretionary spending rises or falls if they convert half of their IRAs and use their regular assets to pay the extra taxes.
To illustrate the potential financial benefits of gay people tying the knot in one of what will surely be called The Original 13 States, I just hopped onto my company's ESPlannerPLUS financial planning program and ran the case of Jerry and Ken, who are both 55 and live in CA. They both earned middle class salaries up till now, have a modest home with a mortgage, and $500,000 in regular assets.
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Older taxpayers who still face estate taxes after the new tax laws are enacted should consider converting regular IRA assets to a Roth.
Finally, remember that if you're charitably inclined, regular IRA assets willed at death give the biggest bang for the buck because they escape both income and estate tax.
Wyser-Pratte has been angling to restructure France's Taittinger family empire, a regular hodgepodge of assets including two hotel chains, a champagne producer and Baccarat crystal.
Crowdfunding proceeds aren't treated any differently than regular income or assets from a tax perspective.
Making small but regular payments into appreciating assets can form the basis of a rainy day fund or even grow into a sizable nest egg over time.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com