Mitt Romney exited Bain Capital with rare tax benefits in retirement

By Tom Hamburger, WashPost, Published: September 2

Before Mitt Romney retired from Bain Capital, the enormously profitable investment firm he founded, he made sure to lock in his gains, both realized and expected, for years to come.

He did so, in part, the way millions of other Americans do — with the tax benefits of an individual retirement account. But he was able to turbocharge the impact of those advantages and other tax breaks in his severance package from Bain in a way that few but the country’s super-rich can ever hope to do.

As a result, his IRA could be worth as much as $87 million, according to his estimates, and he can continue to earn tax-advantaged income from Bain more than a decade after he formally left the firm.

The Republican presidential nominee has been “scrupulous” about observing the tax code, said Romney campaign spokeswoman Michele Davis. “His income is reported and taxed in full compliance with U.S. law, and he has paid 100 percent of what he has owed.” She added that the financial holdings of Romney and his wife, Ann, are managed by a blind trust the Romneys do not control.

Romney’s former colleagues say his retirement package is a well-justified reward for a chief executive who built Bain from scratch in 1984 into a financial powerhouse that backed business successes such as Staples and the Sports Authority.

(More here.)