Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We should all keep our eyes open. Hidden in all the verbiage of the GOP tax plan will be enormous tax breaks for the top 1 % and a few crumbs for the rest of us.
Well so far there's nothing on paper to read..it's all talk.
But don't forget that both sides of Congress have been looking for ways to either tax or get directly the 401K and IRA money for nearly a decade now.
Exactly, there is no plan--yet., just one page summaries of "principles." Trump is already preparing to go on the stump to rally support for the GOP Tax Plan but I suspect he will make all kinds of claims and promises that have nothing to do with the eventual plan.
Here's what I posted on the very same topic one week ago (complete with the edit):
Quote:
Originally Posted by Nepenthe
Ever since we got the Roth 401K (2012 I think), I've been putting what I can into that, as after-tax contribution. So I've already lost the current-year deduction, but all of the Roth 401K money I save can be withdrawn completely tax-free by me when I'm retired.
So I would guess the proposal is to turn everything into Roth 401K for everyone -- no more pre-tax contributions.
My company match and profit sharing still goes into the "traditional" 401K side (where when I take it out it'll all be taxed as regular income).
EDIT: okay, after talking to a couple of people, I don't think this is going to happen. Just to clarify, this proposal would likely kill the Roth 401K and eliminate the pre-tax 401K, but it wouldn't necessarily gut workplace savings plans. With company matches, profit-sharing, company stock plans, etc., there could still be a compelling reason for a saver to use a workplace account as a savings vehicle.
But this article DOES seem to equate it to turning it into a Roth 401K, which I had originally thought they were talking about (but which the article from last week did not mention).
Frankly, the more I can get into Roth 401K, Roth IRA, and Non-Retirement savings, the better. It feels a lot better having after-tax savings sitting there (of course I pay cap gains on profits at sale time in the Non-Retirement registrations).
Profit sharing and company match would still be subject to withdrawal tax as income, however.
Tax cuts have always resulted in increased revenue to the federal government, as the resulting economic growth produces more taxpayers, and increased corporate profits. That's why they don't have to be "paid for."
And the Republican myth of tax cuts paying for themselves marches on.
Tax cuts have always resulted in increased revenue to the federal government, as the resulting economic growth produces more taxpayers, and increased corporate profits. That's why they don't have to be "paid for."
!
A Big Lie.
Reagan himself lowered taxes too far and then increased the deficit by 400% AND then increased taxes and cut loopholes in an attempt (not successful) to make up the difference.
We are up to 20 Trillion in Debt partially due to the GW Tax Cuts. Remember? He even sent out checks - out of deficit. We never made the money up, just went deeper and deeper.
Here is the real truth about tax cuts.
TAX CUTS ARE HOW THE UPPER CLASS (1%) MOVES MONEY INTO THE NATIONAL DEBT...WHICH THEN HAS TO BE PAID BY PEOPLE (OUR CHILDREN) SOMETIME IN THE FUTURE.
In other words, they get the money NOW. Our children and future generations get the bill.
Anyone who claims this is untrue simple can't do math. No need to debate it - it's quite simple.
Um... I have never met a person in my life that thought 401k was a tax shelter. Everyone except you knows the point is you pay taxes later in your old age when your rate is lower, which is a great incentive.
You are the classic example of party over common sense.
People may not have called it a tax shelter but I am sure almost all people who put money in a 401K know they are sheltering current income from taxes to maybe be paid at some later date.
No, because it still helps you reduce the tax burden
Of course you do.
Don't have to pay taxes if I bury it. Second do you think that ANY financial institution cares about you?
Your money yes, but you? Not even close.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
