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What is the 125% rule?
By admin | February 27, 2008
If you are a well-to-do investor, you should certainly take some time and investigate investment bonds and especially the 125% rule. The 125% rule will allow you to invest additional monies into your existing bond up to a maximum of 125% of your contribution the previous year. The benefit, however, is that the government will treat your additional contribution as if it was made at the same time as your original payment. Savvy investors will set up a payment schedule that will allow them to continue to make contributions to their bond — tax-free — a full 10 years AFTER their very first payment was made.
Topics: Business |