61–70 of 306 posts
I really hope this doesn’t go away. My self directed IRA in Bitcoin has led me to prosperity. There was no other way to do it with my retirement funds really.
You've already won then. Why complain?
I really hope this doesn’t go away. My self directed IRA in Bitcoin has led me to prosperity. There was no other way to do it with my retirement funds really.
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...
What I like about Congress - is instead of saying "this provision can allow you to do well for retirement by investing in private companies self directed with an IRA and you might not need social security". Instead they act: "we're not rich, we're mad at the few who are - so instead of teaching you how to do this, we're going to make it illegal"
Yes they are.
I really hope this doesn’t go away. My self directed IRA in Bitcoin has led me to prosperity. There was no other way to do it with my retirement funds really.
You've already won then. Why complain?
This is no skin off the back of the wealthy. They'll find another trick and life will go on. For those of them that actually care about "normal" Americans being able to do the same thing they did, it feels a little wrong that it requires an ever increasing amount moving parts and money to do what they did.
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...
What I like about Congress - is instead of saying "this provision can allow you to do well for retirement by investing in private companies self directed with an IRA and you might not need social security". Instead they act: "we're not rich, we're mad at the few who are - so instead of teaching you how to do this, we're going to make it illegal"
Earlier quoted context omitted.
Restricting the freedom to dodge taxes...
... taxation is theft.
Instead - the name is big and bloated. Expanding budget deficits mean expanded spending, which can never go down.
Earlier quoted context omitted.
The modern 401(k) practices emerged from one of these then-obscure tax codes, which I view as an unabashedly good outcome.
Nah, the 401(k) system is a mechanism of wealth extraction for white collar government-adjacent workers. It's a form of repression. I'd rather be building something than dealing with tax, but I'm very much incentivized to do the latter (though your situation may differ).
People don't want to hear this because 401ks are silver bullets, and we are all inclined to desire silver bullets over applying rigor. Most people have no idea what part of their paycheck is invested in. Why do we let them lecture us on where to hold and grow our wealth?
That's not to say that 401ks in and of themselves are bad. Their existence doesn't mean that people shouldn't take their own risks and hold assets that keep their wealth liquid rather than locking it up. Personally, I prefer paying more in order to have liquidity. Many would disagree with that. But truth be told, no one knows any one answer that applies to all.
Earlier quoted context omitted.
Is this really an issue for low- to middle-income earners, or is that just a scare tactic?
Given the relatively low cap on IRA contributions, it's not directly an issue of income, but rather your access to high-return investments like early-stage stock options. Of course, someone with lots of investments will have the luxury of just making the highest-payoff ones with their IRA funds. Independently, in the rest of the bill [1] there are lots of reasonable things like a $10 million IRA cutoff limit. 1) http…
401k limits are ~20k/yr -- about 10% of your pre-tax if you are maxing out on a 200k SWE TC (or much less given an employer match). Easily, your 401k (and rolled over IRA) can reach 200k (20k x 10) in a decade with no growth, and much more with growth.
At that point, this bill is relevant -- do you really want all your holdings in public stock that gyrate wildly in value every 7yrs?
Just so people are aware, high income individuals can’t use IRAs. This is a direct action against middle to low income individuals. https://www.irs.gov/newsroom/new-income-ranges-for-ira-eligi...
Also, you can “use” an IRA after you contributed to it, so you could be high income now but contributed to an IRA when you weren’t.