An ‘Egregious Loophole’ Is Helping Startup Investors Build $100 Million Fortunes, Tax-Free

Democrats in Congress want to put a cap on the tax maneuver, which is growing increasingly popular. Here’s how it works.

BY BRIAN CONTRERAS, STAFF WRITER @_B_CONTRERAS_

Illustration: Inc.; Photo: Getty Images

Startup shareholders are accumulating millions of dollars worth of equity in their retirement accounts, a new report out this week indicates—and some legislators want to put a stop to the practice.

By buying speculative shares early in a company’s lifecycle and then depositing that stock in an........

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