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Yes, I don't qualify for personal IRA or Roth. I expect no sympathy and I am not bragging; this is what I have to work with. I have had a lot of expenses and was very fortunate to have landed a high paying job. As the expenses lessen, I would like to be able to put more toward retirement without the high tax penalty and the ready availability that just doesn't seem to work for us (our problem, I know). Anyway, with the 401k, I am attempting to max it out (attempting, because sometimes we fail fairness test and I get some back) and I could choose for some to be Roth but it seems like a bad deal since I would have to pay so much tax. My original complaint in the thread is that there is no increase in the max.
Sure you do; you just can't deduct the contributions. Just about anyone with an income is eligible to contribute to an IRA.
You're right; the limited contribution is just on Roth. But if you contribute $6500 to an IRA with money that can't be deducted then do you pay tax on it going in and coming out?
You're right; the limited contribution is just on Roth. But if you contribute $6500 to an IRA with money that can't be deducted then do you pay tax on it going in and coming out?
Is your goal to put away money for retirement or avoid taxes ?
Is your goal to put away money for retirement or avoid taxes ?
Both. But if it is going to cost me $10k to put away $6500 that I will be taxed on again when I take it out, even a whole life policy is start to sound like a deal...
Both. But if it is going to cost me $10k to put away $6500 that I will be taxed on again when I take it out, even a whole life policy is start to sound like a deal...
You are not taxed twice. Only the earnings on that money is taxed.
If you are not taxed on that income, that is THEIR money! They (whoever "they" are) can do whatever they want with it. Redistribution of people's wealth is entirely possible, through many schemes, and with the wrong people in Washington, could go viral. We're talking 80% tax on withdrawals. It's not out of the question. It could be a mandate.
And you'll have no say...and nothing you can do about it.
I and my smarter friends with large IRA's and 401k's are withdrawing those accounts as fast as possible using what may be the best tax structure for decades to come. Because anything could happen given the political climate and economic status of the US. Anything. Don't gamble with your retirement savings. Find something else to do with your stash. This is not your parents' day and age. Quite different in fact. Too iffy, for starters.
BTW it is total BS that a dual income couple gets to put double in 401K then a man with a Stay at Home Wife.
I kind of agree, but it isn't a limit on what you can save, it is a limit on how much income a wage earner can shield from taxes. I am terrible at saving money outside the 401k, but that is my problem really.
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