Journal of Banking & Finance Vol. 38 2014
The tax benefit of income smoothing
Abstract
A worker can reduce tax liability by contributing to a private pension plan when marginal tax rates are high and withdraw pension benefits when marginal tax rates are low. We quantify the tax benefit of income smoothing through the private retirement system and find that it is negligible. This conclusion is important to households, investment advisers, tax policymakers, and scholars engaged in financial retirement planning.
- DOI
- 10.1016/j.jbankfin.2013.09.017
- Volume
- 38
- Pages
- 78-88
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib