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Yes. Income is used in a manner that makes it no longer qualified as taxable income. Can I give you specifics? No, not without breaching confidentiality losing my job and my license. Unfortunately those things outweigh your curiosity.
You don't have to "breach confidentiality", just explain ONE example of how someone could conceivably "re-direct" income so its no longer taxable that is illegal or cannot be done by the "poor" and only the "rich".
The whole subject is now obsolete because the central banks have embraced MMT (Modern Monetary Theory).
No, they haven't. There is uniform consensus among central bankers that national debts do, in fact, matter, and are on a trajectory such that at some point they become untenable.
Jay Powell just reaffirmed that in his Senate testimony.
To the OP, you can always save outside of a 401K plan or IRA. If you use a highly tax efficient low cost etf like ITOT you can build substantial wealth outside of your retirement plans. If you do not automatically reinvest the dividends automatically you can create large lot sizes and greatly simplify your taxes in the event you chose to liquidate a portion of your holdings.
If you think this is incorrect, then where do you think the money is going to come from to support all the masses of soon to be elderly people with no retirement whatsoever?
Alan Greenspan testified before Congress and was asked this question. His response was "We can continue payments indefinitely.....but we can't guarantee purchasing power".
In other word, they will simply print the money.....whether it buys much or not.
And this is exactly what they have been doing for years. This past year was about typical for the last 10 or so.....taxes income = 3.8 trillion....money spent = 5 trillion. Over 50% of that 5 trillion was spent on social programs....social security, medicare, medicaid.
Even if they took all the tax deferred retirement savings (401k, IRA, etc), it would only worsen the problem because then THOSE folks would require govt payments as well.
AND since printing (along with massive inflation) is the only way out of this box, the folks that have been diligent savers in tax deferred accounts are going to be screwed out of their purchasing power. THIS is the reason one ought to save a large chunk of their long term savings in gold/silver, that hopefully might keep pace with the hyperinflation that is coming.
There’s nothing wrong with have pre/post tax investments. You can put monies into a 401k/ira pretax and pull monies out at little to no tax at all if you plan it correctly. Ive got a healthy mix of Roth IRA/401k/taxable investments and have plenty of flexibility
What kind of IRAs do you have that you don’t pay taxes on when you take them out? Other than ROTH.
IMO we need to spend LESS on public education and also stop educating the children of illegals for free. America has a problem with thinking that every single child needs a STEM education and that all young adults need to have a college degree. Americans shouldn't be looking down at those in the skilled trades.
But if parents weren't so crazy about trying to get their children into colleges like Harvard, the country as a whole would have more money to save for retirement. I just don't understand the math of spending over $150K to educate a child through high school, then spend another $160K for a college degree. Why is America investing $300K to educate each child in this country? And as it is, the school teachers feel UNDERPAID. Our educational system is broken. How we are raising our children is very broken.
Mmmm, methinks you are neither parent, nor teacher, nor college graduate.
You do not represent the majority of families. Parents want their children to have a good education if they are to become either a plumber or a doctor. And yes, parents understand not every student needs to go to Harvard.
You don't have to "breach confidentiality", just explain ONE example of how someone could conceivably "re-direct" income so its no longer taxable that is illegal or cannot be done by the "poor" and only the "rich".
Just ONE example.
There aren't any.
It is true that many corporate CEOs receive non-cash compensation. For example, the CEO of Anthem Blue Cross receive $23 Million in total compensation, but only $7 Million in cash and $16 Million in stock options. Those stocks are of a special class, and there are strict regulations governing the sale or transfer of those classes of stock, but then those stocks were never taxable income in the first place.
Did all of you just wander away from the "They're coming for our guns!" rants or something?
This was literally my first thought. Does the OP really believe the big bad government will take our 401(K)? Dear Lord is must be quite a burden to be so paranoid.
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