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Section 1601 and 1602, respectively. In addition, Roth IRA contribution limits will be inflation adjusted, per Section 1603.
I think it is a good idea to reduce the number of options for IRA. This should simplify retirement savings, making it easier for people to save. And in addition, contributing after tax is an easier and more accurate way to plan for retirement. This way 1 million saved is 1 million available to spend.
No thank you. I want to continue contributing to my Traditional IRA PRE-Tax and then draw out post-retirement at a much lower rate. Anyone would be a fool to give that up. (Unless, as you say the contribution limit were totally eliminated. I can't see that happening, the G would lose far too much in taxes. You wouldn't need off shore accounts to hide money.)
In Fact, the more I think about it, this sounds more like a ploy to eliminate capital gains taxes so many of the rich will pay no taxes at all.
Last edited by blktoptrvl; 03-08-2014 at 08:26 PM..
OK really stupid question: when you withdraw from a Roth are you not paying capital gains taxes? And when you withdraw from a 401(k) you are taxed at regular income rates right, which I assume are lower?
No thank you. I want to continue contributing to my Traditional IRA PRE-Tax and then draw out post-retirement at a much lower rate. Anyone would be a fool to give that up. (Unless, as you say the contribution limit were totally eliminated. I can't see that happening, the G would lose far too much in taxes. You wouldn't need off shore accounts to hide money.)
In Fact, the more I think about it, this sounds more like a ploy to eliminate capital gains taxes so many of the rich will pay no taxes at all.
When did I say the contribution limit would be eliminated?
When did I say the contribution limit would be eliminated?
Sorry, misread income limit as contribution limit.
Because of that misunderstanding, I amend my statement:
No thank you. I want to continue contributing to my Traditional IRA PRE-Tax and then draw out post-retirement at a much lower rate. Anyone would be a fool to give that up.
Carry on!
Last edited by blktoptrvl; 03-08-2014 at 09:21 PM..
Sorry, misread income limit as contribution limit.
Because of that misunderstanding, I amend my statement:
No thank you. I want to continue contributing to my Traditional IRA PRE-Tax and then draw out post-retirement at a much lower rate. Anyone would be a fool to give that up.
Carry on!
Give up what?
Don't you think you'll be wealthy enough at retirement to be in a higher tax bracket then than you are now?
Give up the opportunity to put away so much money. Through the 401K I can put up to $26K into my IRA (through rollovers) a year. When it is time to draw out, It will be at a retirement rate. If I switched to a Roth, I would be paying tax on all that money NOW at my high income rate.
Quote:
Originally Posted by AmFest
Don't you think you'll be wealthy enough at retirement to be in a higher tax bracket then than you are now?
I make well over 12K a month. My cost of living is actually about $2.4K a month, almost all the rest goes into some form of savings or another. So, when it is time to retire I will reduce my monthly cost to about $1,900 a month or less (mostly by getting rid of some of my cars and related cost). I will be in a much lower tax bracket because I will be drawing FAR less than I am currently making a year.
No one is questioning the oh-so honest GOP about this?
This is about as distasteful of an idea as one can get. Mitt Romney was able to amass over $100 million in his regular IRA.. imagine what these crooks could do with no limits to a tax-free account?
Give up the opportunity to put away so much money. Through the 401K I can put up to $26K into my IRA (through rollovers) a year. When it is time to draw out, It will be at a retirement rate. If I switched to a Roth, I would be paying tax on all that money NOW at my high income rate.
I make well over 12K a month. My cost of living is actually about $2.4K a month, almost all the rest goes into some form of savings or another. So, when it is time to retire I will reduce my monthly cost to about $1,900 a month or less (mostly by getting rid of some of my cars and related cost). I will be in a much lower tax bracket because I will be drawing FAR less than I am currently making a year.
Since you're very wealthy, don't you think you'll have so much in retirement savings and other investment accounts that you'll want to withdraw a significant amount each year? To give to your grandchildren, travel, build a city (maybe), or whatever you didn't get a chance to do when younger?
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