James Edward Maule, MauledAgain (June 7, 2021): When It Comes to Tax, What Does Age Have to Do With It?

James Edward Maule’s MauledAgain tax blog entry focuses on importance of age when filing tax returns. His article, “When It Comes to Tax, What Does Age Have to Do With It?” includes the following commentary:

There are several places in the Internal Revenue Code where age is a factor in determining a taxpayer’s right to, or the amount of, an exclusion, deduction, credit, or additional tax. In most instances, these age-defined provisions reflect a connection between age and the benefit. For example, withdrawals from a tax-favored retirement benefit plan made before a specified age can trigger an additional tax if one or more of several exceptions do not apply. Along the same lines, additional taxes are imposed if withdrawals are not made from a tax-favored retirement plan once the taxpayer reaches a specified age. Putting aside the question of whether the tax law should be the vehicle for retirement plan regulation, these age-based provisions reflect the reality that tax benefits for retirement savings should be restricted to taxpayers in retirement, and ought not be used as tax-avoidance devices that postpone tax reckoning indefinitely.

To see the full article, click: “When It Comes to Tax, What Does Age Have to Do With It?

Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.

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