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Politics : View from the Center and Left

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To: Katelew who wrote (150426)	11/17/2010 4:43:46 PM
From: Katelew	Read Replies (1) of 543697

Hmmm....I don't know if income averaging is still around. Deferred compensation is a category all it's own, however as you allude, it functions in a similar manner, i.e. minimization of taxes. Deferred comp = I'll pay you $100,000 a year now and then you'll receive another $50,000 a year after you retire. Income average = a salesman has two great years and 3 mediocre years. He can average the great years against the mediocre on a 5 year averaging schedule and avoid being pushed into a higher bracket during the two great years.

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