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Old 12-11-2012, 12:27 AM
 
16,393 posts, read 30,261,314 times
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Quote:
Originally Posted by Info Guy View Post
What would happen if the 401K and Roth IRA had no maximum limits?

There would be a lot of people deferring nearly all of their income to avoid teh tax liability.
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Old 12-11-2012, 11:25 AM
 
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Quote:
Originally Posted by jlawrence01 View Post
There would be a lot of people deferring nearly all of their income to avoid teh tax liability.
Absolutely. In years past when our income was a bit lower than normal and we wouldn't have been able to max out 401Ks, I substituted the lost income from non-tax deferred savings and still maxed out 401Ks. If someone made a loophole that let me put as much as I want into a Roth 401k or Roth IRA, with no limits, I'd immediately put 100% of my salary towards it.
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Old 12-12-2012, 08:15 AM
 
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20% of my take home pay on average since I refunded my flat's mortgage (before it it was about 5%!). By the way I LIVE IN F like the OP.And we are two people living out of my salary (me and my wife whi doesn't work).
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Old 12-12-2012, 05:05 PM
 
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Quote:
Originally Posted by jlawrence01 View Post
There would be a lot of people deferring nearly all of their income to avoid teh tax liability.
You still have to pay taxes for 401K though.
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Old 12-12-2012, 06:37 PM
 
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Quote:
Originally Posted by Info Guy View Post
You still have to pay taxes for 401K though.
Not until a later date ...
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Old 12-14-2012, 06:34 AM
 
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Quote:
Originally Posted by Info Guy View Post
You still have to pay taxes for 401K though.
Or just do a ROTH 401K. Thats what I've been doing for a few years now.
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Old 11-14-2013, 03:06 PM
 
Location: MO->MI->CA->TX->MA
7,034 posts, read 14,474,847 times
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Quote:
Originally Posted by Info Guy View Post
I save 99% of it. 1% of it goes to bills and the rest in investments.
By any chance, are you this person?

Meet The World's Cheapest Millionaire On 'Extreme Cheapskates' (VIDEO)
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Old 11-15-2013, 06:26 AM
 
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Quote:
Originally Posted by ragnarkar View Post

It is all a game after a while. That lady does NOT think that she is being cheap. She got used to a particular lifestyle and she is content with it.

My father, now in his eighties, is the same way. If he wants something, he buys it. Occasionally, he'll pay $85-125 per pair for trousers that he really likes. The thing is, his wants are infrequent and minimal. He does NOT think that he is cheap or thrifty.
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Old 11-15-2013, 07:08 AM
 
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It's encouraging to me to read this thread and see so many people diligently saving and investing!

I max out my 401(k) at $17,500 a year. Also I have a Roth IRA and my wife a traditional IRA, and we put $6500 into each of these. Our stocks reinvest all dividends, which amounts to another $11,000 per year right now. My company offers an employee stock purchase plan which I use to buy $300/week of NUE (our parent company) stock, so this is another $15,600. Adding these up, we are putting away $57,000 annually, and company matching contributions to my 401(k) and their 10 percent match of my company stock purchases yield another $13,000 or so.

I used to be very tight with a dollar but now I find I can indulge myself once in a while, like jlawrence's father, and spend money on something I really want. I think it must be easier to relax your thriftiness a bit later in life as I have done than to go the other way and try to rein in longstanding spending habits.
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