Generating Retirement Ownership through Long-Term Holding

Key Provisions

• Lets individuals delay paying taxes on capital gain dividends from regulated investment companies if they automatically reinvest those dividends.
• Requires individuals to pay those deferred taxes when they sell or redeem their shares, or upon their death.
• Sets a rule that if you sell only some shares, you would pay taxes on a matching part of the deferred gains.
• Treats shares bought with reinvested dividends as held for one year and a day from the purchase date for tax purposes.
• Excludes individuals claimed as dependents, as well as estates and trusts, from using this tax deferral.
• Requires any deferred gains not paid before an individual's death to be included in their income for the year they die.