Sam, a 55-year-old corporate executive, wants advice s to when he can retire. His current salary is $250,000 and he receives an annual bonus of $290,000; he also has annual stock options and restricted stock awards valued at $100,000. His employer contributes to a cash balance pension plan and matches his contributions to a 401(k). Sam owns a whole life insurance policy with a $500,000 death benefit and is considering the purchase of a term policy with a $3,000,000 death benefit. He and his wife, Jane, also 55, believe they can live on an after-tax income on $150,000. Assume a federal income tax rate of 35%.

2. Sam is in the 42% marginal tax bracket (combined Federal and state). Sam wants to contribute $100,000 towrdds his childs education I nthe next 3 years. Which of the following approaches minimizes his taxable gift? a. Paying the college directly b. Contributing the funds to a Section 529 Qualified Tuition Plan c. Contributing to a Uniform Transfers to Minors Act (UTMA) account for the child d. Contributing to a Coverdell Education Savings Account Plan