1986 Tax Reform Planning Strategies for Avoiding Excise Taxes on Excess Retirement Distributions and Excess Retirement Accumulations

Graves, Thomas C.; Hoyt, Christopher R.
March 1988
Benefits Quarterly;1988 First Quarter, Vol. 4 Issue 1, p16
Academic Journal
This article describes the new excise taxes that apply to certain large distributions from tax-favored retirement plans and to the accumulation of substantial amounts of survivor benefits in such plans. It focuses on a grandfather rule that may reduce the amount of these excise taxes in certain situations and that must be elected with an individual's 1987 or 1988 federal income tax return. Certain planning alternatives are suggested that could avoid or reduce the impact of these excise taxes.


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