President Joe Biden has proposed increasing the highest marginal long-term capital gains tax rate from 20.0% to 39.6%. For those earning $1 million or more annually, the new top rate, along with the net investment income tax, means that federal capital gains tax rates for wealthy investors could exceed 40%. With the proposed increase in capital gains rates, asset location becomes even more critical, and earners subject to the highest rates have likely maximized many of the tax-advantaged account options available. However, for certain qualified investors, there may be an alternative in the form of Private Placement Life Insurance and annuity contracts.