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I already knew about his tweet when I posted this - I don't hang anything of any value on a tweet...and I also don't nap while I'm at work.
If you have such trust in Trump you must be a .1%...or THINK you will be someday...keep hopin' cuz that club doesn't let in many new members.
Nope I’m not a .1%. Just an old retired person with a decent pension and drawing my Social Security check every month. Thank you for your contribution.
Two things come to mind at first thought: Will we be able to contribute the current max amount in a Roth, other than through an employer or designated Roth? And, this will cost us all in the future, as some have already mentioned. I feel shell shocked.
Larry, I will respond to you as we have had shared discussions before. Something has to give if major corporate tax cuts along with other higher income tax cuts are going to happen. Without cuts in spending or increases in other areas of government funding a big hole will blow up the deficit.
Republicans know their future is dependent on keeping a group of very upset donors happy.
Had Democrats won 401/403 plans would have been under fire for different reasons including the fact they contribute to wealth inequality and limit tax receipts to grow programs for the poor and middle class.
Both parties want to spend more money. One on guns and the other on butter.
We hear from the retirement forum that many retirees are reinvesting their RMD's and of late have made far more annually than their required RMD's. There are trillions of dollars sitting in retirement accounts without taxes being paid on or spent in the economy by citizens.
Something has to give. Health care reform was suppose to pay for it and that didn't get passed. SS? Medicare? Medicaid? Retirement accounts? Where is it going to come from?
On a personal note I had a similar discussion with my wife earlier. What are we doing with our money? Our investments? assuming we started at 25ish and it is now 45 years later how much have we spent? At this point that amount will go down. The answer may well be no more. RMD's reinvested when we pass any balance inherited. With stretch IRA rules it can drag out even longer. That is a long time and a lot of tax free accumulation tied up in investment accounts.
Why are people with pensions allowed the same tax sheltered maximum amounts as people without pensions? Let me get this right a person with a pension gets to have that money contributed along with the employer contribution receive a ROI without it being taxed? Then on top of that they are allowed to contribute up to the maximum amount money in 403/401 without that being taxed and the ROI on that money not taxed. Wow what a deal, what a deal. No wonder there was a book called the millionaire teacher. https://www.thebalance.com/book-revi...teacher-453875
On top of that he got a pension. Wow just wow!
Perhaps there should be contribution limits on people with pensions. Is that a worthy idea for discussions? I mean just how affluent should government help a person become in retirement? Sure very affluent on your own but government as your partner?
Full disclosure. The author of this post is close to 70 about to start RMD's is married with two pensions, two SS benefits, Two taxable portfolios and multiple after tax portfolio's. I must say thank you to the many years of tax free accumulation and the many more to come.
You make many good points but the 401/403 deduction is mostly used by middle class savers with no other retirement provision (other than Social Security), not by high-income retirees who reinvest their RMDs. The median retiree has about $150,000 in retirement assets and needs five to ten times that. We should implement policies that encourage people to save as much as possible, and tax deferral is one way to accomplish that.
The trillions of dollars in retirement accounts will be taxed sooner or later. Very few people are in a position to use the stretch IRA rules.
There are strict income limits on IRA and Roth IRA contributions. 401(k)s can be used by people with pensions, remembering that most pensions are tiny and the individual must also save.
The number of people *outside the government sector* with two pensions, two SS benefits, and substantial private savings could probably fit into a phone booth.
Anyway, Trump said today that cutting 401(k) contribution limits is off the table. He is not an idiot. Excuse me, he is an idiot, but occasionally he says something that is not idiotic.
You make many good points but the 401/403 deduction is mostly used by middle class savers with no other retirement provision (other than Social Security), not by high-income retirees who reinvest their RMDs. The median retiree has about $150,000 in retirement assets and needs five to ten times that. We should implement policies that encourage people to save as much as possible, and tax deferral is one way to accomplish that.
The trillions of dollars in retirement accounts will be taxed sooner or later. Very few people are in a position to use the stretch IRA rules.
There are strict income limits on IRA and Roth IRA contributions. 401(k)s can be used by people with pensions, remembering that most pensions are tiny and the individual must also save.
The number of people *outside the government sector* with two pensions, two SS benefits, and substantial private savings could probably fit into a phone booth.
Anyway, Trump said today that cutting 401(k) contribution limits is off the table. He is not an idiot. Excuse me, he is an idiot, but occasionally he says something that is not idiotic.
Yes because many idiots have graduated from Wharton, reshaped city skylines world wide, changed television, become multi-billionaires and won the presidency of the US(and objectively have done a good job, every indicator is positive).
Right...we'll just all stomp our feet and call our ('Pub) congresspeople and they'll put a stop to it, by golly!
And....turns out I was exactly right.
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