Question

The Robertsons, a couple with an adjusted gross income of $28,500, decides to contribute the maximum amount possible toward their individual retirement accounts (IRAs) even though Mr. Robertson is covered by a pension plan where he works. He names his wife the beneficiary of the IRA. What is such a tax strategy called?

Answer 1

Tax deferral strategy.

Step-by-step explanation:

Mr. Robertson will have to pay taxes later in the future at the time of withdrawal of the money.