John and Sarah are married couple who live in Austin, TX. John is a 55 yrs old recently retired from his own dental practice. Sarah is 50 yrs old tax accountant who also recently retired. They bought their house 20 yrs ago at 200K which is currently worth $1.5Million. The mortgage was recently paid off. John and Sarah were savvy investors and had invested in few growth stocks (like amazon) at 200K which is worth $2Million. These individual stocks are not paying and dividends. John had contributed the maximum amount to his Keogh plan and Sarah did the same in her 401K at her old firm. The assets within the retirement accounts have nicely grown to $2Million. In addition, they had invested all their after tax savings in S&P fund worth about 2.6Million with a cost basis of 700K. They have a son who has moved out few years ago and has a successful career. Their net worth including their house is $8.1 Million. Since they don’t qualify for Medicare, they applied for ACA coverage with a nice subsidy as their only taxable income is dividend from the S&P fund at about 50K . There is no Federal income tax as they falls in to zero capital gain bracket. There is no state income tax since they live in TX. At 65, they will take out the minimum required distribution which would be somewhat offset by a nice standard deduction and maybe some direct charitable contribution out of the retirement funds. When they pass away, their son will inherit all the assets. There would be no Estate tax since they are under the limit. The son will get a step up basis for all the assets and will sell them with zero tax due.