Employee Options
This is the taxable event for RSUs issued by most U.S. employers, even if the employee has not yet sold the underlying shares.
What is the vesting date?
This strategy involves buying a call and a put at the same strike and expiration, creating a pure bet on volatility.
What is a long straddle?
The Internal Revenue Code governs Section 1091 rules and disallows losses if substantially identical securities are repurchased within 30 days, also known as this rule.
What is Wash Sale Rule?
SECURE Act 2.0 raised the RMD age to 73 for individuals born between 1951 and 1959, and to this age for those born in 1960 or later.
What is age 75?
This type of life insurance allows premium flexibility, death benefit option changes, and partial withdrawals without policy loans.
What is universal life insurance?
To qualify for favorable ISO capital gains treatment, shares must be held at least two years from grant and this long from exercise.
What is one year?
This income strategy involves selling a call option against stock you own while retaining full downside risk.
What is a covered call?
This deduction phaseout limits the ability to deduct traditional IRA contributions when a client is covered by a workplace retirement plan and income exceeds defined thresholds.
What is the active participant rule?
The maximum lifetime amount that can be rolled from a 529 to a Roth IRA is this.
What is $35,000?
The portion of a policy’s premium used to cover mortality charges is known as this.
What is the cost of insurance (COI)?
ESPPs allow employees to purchase company stock at a discount of up to this percentage without immediate taxation.
What is 15%?
This hedging strategy caps upside but provides downside protection by combining long stock, a long put, and a short call.
What is a collar?
This special exclusion allows a single taxpayer to exclude up to $250,000 of gain ($500,000 if married filing jointly) on the sale of a primary residence, provided they meet this ownership and use test.
What is the Section 121 exclusion (two of the last five years ownership and use)?
Starting in 2026, catch-up contributions for high earners making $145,000+ must be made in this tax treatment format.
What is Roth?
This permanent policy design intentionally minimizes death benefit to maximize tax-deferred accumulation under IRS limits.
What is life insurance for maximum cash accumulation (LIRP or minimum non-MEC death benefit)?
RSUs do not qualify for this tax election, because no property exists at grant.
What is an 83(b) election?
Double Jeopardy
Host read question after wager
Question: This Option strategy involves selling a short call then using the premium to purchase a put option uniquely named for it’s cost.
Answer: What is a cashless Collar?
This tax applies to unearned income for children under 19 or 24 if a fulltime student. Specifically, with the 2025 limit of $1,350 being tax free followed by $1,350 at the child’s tax rate, followed by the parent’s tax rate.
What is Kiddie Tax
SECURE Act 2.0 allows penalty-free emergency distributions of up to this amount annually.
What is $1,000?
This trust structure owns a life insurance policy to remove proceeds from the insured’s taxable estate.
What is an ILIT (Irrevocable Life Insurance Trust)?
An 83(b) election must be filed within this number of days of receiving restricted property.
What is 30 days?
This Option strategy involves two “legs”: Selling an option for a higher premium and buying an option for a lower premium, the maximum potential loss is capped and the difference between the premium received from the sale and the premium paid for the purchase is a net credit, which the trader keeps
What is a credit spread?
This deduction allows qualifying business owners to deduct up to 20% of qualified business income.
What is the Section 199A QBI deduction?
SECURE Act 2.0 eliminated the 25% cap on QLAC purchases, replacing it with a flat dollar cap of this amount.
What is $200,000?
This IRS test determines whether a policy becomes a Modified Endowment Contract (MEC).
What is the 7-pay test?