Taxshelters

title: Tax Shelters description: [AFW S.3] Retirement & child tax shelters. published: true date: 2026-06-30T08:07:57.215Z tags: editor: markdown dateCreated: 2021-04-20T07:24:50.979Z

Links to Tax Shelter Types¶

• 1. Retirement Tax SheltersIRAs, SEP, Simple, 401k.
• 2. Minor Tax Shelters & Accounts529-Plans, Coverdell, UTMA/UGMA, Trump Account, ABLE

Introduction to Tax Shelters¶

Watch AF MKOM 1629 - Advanced Tax Shelters (or Not?) VIDEO

"Trying to minimize taxes too much is one of the great causes of really dumb mistakes in investing." ―Charlie Munger

Usually it makes sense to delay taxes if you can, instead of paying them now. Even though it is possible that taxes will be higher at a later time, don't pit a possible against the certainty of paying taxes now. There are trade-offs, however. The monies in a tax-shelters are not as easily accessible as compared to voluntary accounts.. Usually, one cannot withdraw funds until age 59 ½. Analogy: The plan is like a "wrapper", which shelters our money from taxes. Inside the plan is the "candy" or the investment vehicle.

Tax-shelters include:

• 401(k)s
• IRAs (Roth and Traditional)
• SEP IRAs
• Variable Annuities
• 529-Plans (for college)
• Coverdell Savings Account (for college)
• UTMA/UGMA (for minors)