taxes

Taxes and Retirement Accounts

Hi Kim,

The program is correct and the reports indicate this. It's true that with higher inflation and higher nominal rates of return, the effective tax on asset income is higher because our tax system taxes not the real, but the nominal return on regular assets. So higher inflation would make having money in retirement accounts a better deal from a tax advantage compared to having regular assets whose return gets slammed annually by the higher effective asset income tax.