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Location: Westland, Michigan, United States

Graduate of Walsh Institute Of Accountancy (Now Walsh College) Michigan in 1959. Retired in 1987, but still active in the profession **World War II Veteran (Pacific) **PHONE 734-261-1979 **E-MAIL -cpabakem01@yahoo.com **(Domain Name CPASENSE Registered) **Mentioned in the Journal of Accountancy, SmartPros, Tax Prof Blog, CPA2BIZ, CPA Journal, AccountingWEB, CPATrendlines & More **Search Accounting Blogs: http://www.blognetnews.com/accounting (Includes cpasense)**TOPICS - FINANCE - FEDERAL & MICHIGAN TAXES ** Making Sense Of Your Finance & Taxes

Friday, June 22, 2007

Understanding Tax Deferral

The parity principle revealed
By Kaye A. Thomas Posted June 17, 2007

The benefit of tax deferral isn't what most people think.

Tax deferral — legally postponing a tax until a later year — is a common theme in strategic investing. It’s the key benefit of traditional IRA and 401k accounts. Knowledgeable investors manage their capital gains to achieve tax deferral as well. Despite its importance, tax deferral is often misunderstood. People tend to believe they’re receiving one kind of benefit when in reality they’re receiving another.

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