Posted on 10/20/2017 9:58:58 AM PDT by C19fan
Proposals floating around Washington to cap the amount that Americans can contribute before taxes to 401(k) plans and individual retirement accounts are unsettling professionals in the retirement industry.
Republicans are looking for ways to generate revenue to support broad reductions in individual tax rates. One idea is to limit the amount of pretax money households can sock away for retirement saving. Such a move would likely generate significant political blowback but it hasn’t been explicitly ruled out, stirring worry among industry lobbyists.
(Excerpt) Read more at marketwatch.com ...
Fake news indeed... Of course they do not mention just who has proposed this. The link shows a picture of two Republican representatives who happen to be on the Ways and Means Committee, but nothing in the article indicates they are the ones who floated the idea. They also mention that a spokeswoman for the Committee "declined to comment".
you are probably correct about that.
President Reagan did reduce taxes (somewhat, anyway.. it was party true)
so I am still a little bit hopeful
HOWEVER YES, given the RINOs in the Senate especially...
I guess you are right.... they’ll never ever reduce taxes substantially on the rest of us, never. They are basically left-wing or leftist-enablers
Thanks for posting this. I had forgotten this bs from the Clintoons!
Bad. But not nearly as bad as the trial balloon Bill Clinton floated shortly after being elected. His proposal was a one time “tax” on the current value of all 401 k’s and other private retirement accounts, (10% - 20% were the amounts floated)to shore up Social Security. He got so much blow back he quickly stated he never supported such a plan in the first place and, if I recall, the economist behind it was fired. But don’t think for a minute Washington wouldn’t LOVE to get a hold of all the private money that right now by law they can’t touch.
No one size fits all, unfortunately the tax code is too complicated. There are tools that can help such as Optimal Retirement Planner.
https://www.i-orp.com/delta/index.html
I understand in general terms the differences, but I still don’t know why you would say a 401K is a “ripoff”. That doesn’t make sense to me at all. Can you explain why you say that?
I’ve worked for 17 companies, about half as a contractor. Of the half that was as a company employee, a little over half offered matching funds, but even then you had to put in 3-5 years to see any of it chipped in.
Again, I see 401k’s as a ripoff only if there are no matching funds. And then only because there are superior alternatives for “wage earners”. There are a lot of rundowns on the internet explaining this.
I’ve found that anything discussing investing or savings can be quite contentious on FR. There are a lot of opinions. Retirement vehicles are like motor vehicles. All have their detractors, but some of them REALLY deserve it.
You do not want another civil war. Trump is working at it
WE must help
LOL
I figured I was hearing “California Screaming,” and I was. Find someone else to subsidize your monstrous state tax.
I agree with you. I'd be amazed if the feds don't mess with it.
Funny they just raised limits for next year to $18,500, catch up stayed at $6,000.
Required minimum distributions begin at age 70 1/2 for 401Ks and IRAs. The government will let you defer taxes but not forever.
If the taxes on retirement savings aren't paid ahead of time, you're at the mercy of the taxman for any new laws that are enacted.
All this will do is shift anything >$2400/y over to Roth IRA's. In other words, it just kicks the can down the road when the revenue will be lost on withdrawal.
“The Stupid Party” for a reason.
Please show me an IRA that will let a 50 year old worker exclude $24k from taxable income like a 401(k) allows. Sounds like your broker can sell IRAs but doesn’t have any 401(k) business. You can also out that entire $24k into Roth. Again show me an IRA you can dump that much in each year.
Now I agree if you want to take out 15K a year, the tax burden is not so bad. But say you want to pay cash for a new car, or travel, or gift to your kids or whatever.... the money you pull is taxable. Say you have to pay for medical costs that your lousy Obama regulated insurance company won't pay for... it's taxable. Furthermore, at some point you get old enough that the RMD is more than 15k. They will get their money.
Well, if you are doing that I’d put all I can in the Roth first and then top off my contributions to the 401k. And since the employee contribution limit on 401k’s is 18k, I assume you are adding in your company’s matching funds to get to the 24k.
Man, I’m 64 and I worked hard to ensure that I just won’t need much money when I’m 66. It’s all in paid off real estate and PM’s.
I guess I took that “going Galt” thing a bit too serious. :)
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