41–50 of 306 posts
>Under these provisions, you would no longer be allowed to invest your IRA into private placements and single-member LLCs, regardless of your level of income or wealth. Huh. So under current law, you can take your IRA money and "invest" it in a single-member LLC? Wild. Does that let you circumvent the proscription against living in properties you own through your IRA? Since in that case, the "owner" would be the LLC,…
No it doesn't as that would fall under the rules for prohibited transactions of which there are strict rules and penalties. See https://www.irs.gov/retirement-plans/plan-participant-employ... .
Does it prohibit those same transactions between an investment within the plan (like an LLC) and a disqualified person?
I mean, if I own Apple stock, I can buy things in the Apple store.
Presumably meant to address high net worth individuals completely dodging taxation on huge gains by using their IRAs for investments like exercising early-stage stock options.[1] I kind of wish they'd go with just capping the gains, but would I still say that if I wasn't planning to use mine to "fund" high-return cryptocurrency arbitrages? 1) https://www.forbes.com/sites/sarahhansen/2021/06/24/peter-th...
Presumably meant to address high net worth individuals completely dodging taxation on huge gains by using their IRAs for investments like exercising early-stage stock options.[1] I kind of wish they'd go with just capping the gains, but would I still say that if I wasn't planning to use mine to "fund" high-return cryptocurrency arbitrages? 1) https://www.forbes.com/sites/sarahhansen/2021/06/24/peter-th...
Assume this is meant to capture the Mitt Romney scenario. https://www.theatlantic.com/politics/archive/2012/09/whats-r...
The income has already been taxed. The economics are identical to other qualified retirement plans. This is simply more about restricting freedoms and making excuses for targeting Peter Thiel personally.
This is not true - traditional IRA contributions are made pre-tax.
Presumably meant to address high net worth individuals completely dodging taxation on huge gains by using their IRAs for investments like exercising early-stage stock options.[1] I kind of wish they'd go with just capping the gains, but would I still say that if I wasn't planning to use mine to "fund" high-return cryptocurrency arbitrages? 1) https://www.forbes.com/sites/sarahhansen/2021/06/24/peter-th...
Assume this is meant to capture the Mitt Romney scenario. https://www.theatlantic.com/politics/archive/2012/09/whats-r...
https://www.propublica.org/article/lord-of-the-roths-how-tec...
Earlier quoted context omitted.
Is this really an issue for low- to middle-income earners, or is that just a scare tactic?
This has no impact on the average person in the low to middle class income range. This is just a loophole allowing the rich to put a bunch of money into their IRAs and watch it grow in a tax advantaged way. The average person that's putting the max of $6k (or less) into their IRA is not impacted by this and it's business as usual for them. I believe this is in response to people like Peter Thiel https://www.propublic…
One of my more controversial opinions is that tax advantaged retirement accounts should be eliminated entirely. Almost all of the advantages of them accrue to the top decile of income earners. Why should we have exceptions in the tax code just to help richer people amass more money?
Earlier quoted context omitted.
Is this really an issue for low- to middle-income earners, or is that just a scare tactic?
This has no impact on the average person in the low to middle class income range. This is just a loophole allowing the rich to put a bunch of money into their IRAs and watch it grow in a tax advantaged way. The average person that's putting the max of $6k (or less) into their IRA is not impacted by this and it's business as usual for them. I believe this is in response to people like Peter Thiel https://www.propublic…
What if - instead of the government keeping us to the lowest common denominator (social security) they encourage, educate, and allow everyone to be their highest common denominator?