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Any tax deferred stock options available?

2,637 740 October 4, 2017 at 11:31 AM in Finance (4)
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Hey Everyone,

I was wondering if there is an investment acount I can set up that lets me defer the taxes on gains until I withdraw it. Ideally I'd want an IRA but the account I already have has about $70,000 in it so the IRA limits won't make that a possibility.

All the money in this account is post-tax money (IE I deposit post-tax money into this account, it's not a 401k or IRA). I was hoping that there was a way for me to pay taxes on gains when it's withdrawn instead of every year. I don't intend on withdrawing the money for 30+ years.

Might be a bit of a pipe dream but the government should really allow this if it doesn't exist. I calculated it out and by taking taxes every year the government would get about a million in taxes over the life of the account vs 5 million in taxes if they took taxes at the end of the life... (By virtue, the account's total value would also be 5 times greater if they take taxes at the end of life vs every year).

Could I set up a trust to accomplish this goal?

Thanks!

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#2
If you intend to trade often, there is no way to avoid paying taxes as soon as you realized the gains.

If you hold your investments for many years, you only pay taxes once you sell them. That's a big component of why people like Warren Buffet accumulate so much wealth - by buying and holding you get significant tax advantages. Not only do you pay taxes on gains only once, but you also pay a smaller rate (long term investment vs regular income rates). Does that fit into your strategy?
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Joined Dec 2014
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#3
Quote from MickySlicky
:
If you intend to trade often, there is no way to avoid paying taxes as soon as you realized the gains.

If you hold your investments for many years, you only pay taxes once you sell them. That's a big component of why people like Warren Buffet accumulate so much wealth - by buying and holding you get significant tax advantages. Not only do you pay taxes on gains only once, but you also pay a smaller rate (long term investment vs regular income rates). Does that fit into your strategy?
I personally do all sorts of trading. I've got stock I've owned for over a year but then I also day trade and sell options. The account in question is actually a joint account between myself, and two others. If we made it an Ira would each of us be able to contribute the max each year or would it be limited to the acct?
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#4
the 'i' in IRA stands for individual; you cannot have a joint individual retirement account. you can each have your own IRA, which will be subject to its own limits.
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