I learn new tax avoidance tricks from Mr Rob all the time, like avoiding taxes on $100,000 of after tax video poker profits by writing off dinners, parties and groceries on his Schedule C.
So now Mr Rob has revealed a new tax trick which is brand new to me.
He said in his recent post this gem:
"It was the first time I used any serious clump of the DU money, which was all cash and in my safe. I actually took the money for it out of my retirement savings in order to create a trail. Then in time I replenished my account."
As I said I don't know anything about this, so a question. Why did you have to create a paper trail from your retirement account when the double-up money WAS ALREADY CLEAN? To collect the W2G payoffs of about $466,000 per year you already had presented proper ID and you already skirted casino security.
It was clean money. Yet, you complicated it by getting your retirement fund involved? And why would you take clean money from a W2G win in cash? It's documented. Right?
Also, I'm not sure about contribution limits on 401k accounts. Someone else needs to check on that.
I seriously doubt you could have borrowed from an employer pension plan. But if you did it's easy to verify if those arrangements are available.