Aug
15
Rich Professionals Are Using Pension Plans as a Tax Dodge
By-
Plans can help older doctors, lawyers stash more than $300,000
- Treasury proposed regulations Aug. 8 blocking some strategies
There’s one area where the traditional pension plan is getting new life — as a tax dodge for wealthy business owners.
Pensions, also known as defined-benefit plans, can be used by doctors, law partners and wealth managers to stash hundreds of thousands of dollars in income a year. By doing so, they’ll get around the income limits Congress created to bar them from a generous new tax break for owners of pass-through entities, who report the firms’ income on their individual tax returns…
