131–140 of 306 posts
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.
Uhh... have you heard of capital gains tax? (And capital loss deductions).
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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…
So your argument is: the law is restrictive enough that poor people are going to stay poor, thus you can safely ignore the consequences for them and create additional laws to restrict “rich” people. An extraordinary entitled and comfortable perspective shines through strongly here.
I also got by reasonably well with college student loan debt.
I'm relatively privileged in the above ways. If I wasn't quite so lucky and set up for success I'd struggle a lot to afford to put money into retirement accounts.
I think the rich should pay their fair fucking share of taxes. It helps society. This loophole they're trying to get rid of actually means that those who are far better off than the rest of us, who are using these loopholes to avoid taxes will have to pay more taxes. Seems like a real win for the low and middle class people here.
I'd recommend reading the proposed provisions themselves directly from the Ways & Means Committee instead of the main article urging action: https://www.advantaira.com/wp-content/uploads/2021/09/WM-Tax... Highlights: 1. You can't add new contributions to tax-advantaged accounts if their total value exceeds $10 million and you make over $400K for single filers, amounts indexed to inflation. 2. There are required minim…
The killer is the "The bill also prevents investing in an entity in which the IRA owner is an officer." which is generally how the checkbook IRA is structured (IRA owner is the Manager of the single member LLC that is wholly owned by the IRA). Sec. 138314. Prohibition of Investment of IRA Assets in Entities in Which the Owner Has a Substantial Interest. To prevent self-dealing, under current law prohibited transactio…
The whole article is predicated on the lie that low and middle income earners are buying private placements and LLCs in their IRAs. They are not. Full stop.
What is "Full stop"? I'm seeing it used more and more in political internet discussions
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The modern 401(k) practices emerged from one of these then-obscure tax codes, which I view as an unabashedly good outcome.
The modern 401k laws are a giveaway to the financial industry. They stipulate extraordinary restrictions on what investors can/must _invest_ in and fundamentally transfer tremendous economic power and influence to “advisors” and the financiers attached to them.
Now that so many of us are participating in the stock market (in one way or another), we're more likely to support policies that Wall Street tells us will keep the market booming. Wall Street won by winning over Main Street.
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No one's saying you can't get rich. You have to pay taxes on the gains.
Agree - everyone should pay taxes. What I'm suggesting is leaving the "no taxation on this type of gain [IRA]" and promote it to the entire citizenry as a method of not requiring social security, or not needing to support as many people on social security. The governments job should be to support people being OFF SS based on their own supportive, good choices.... If more people were off SS, then the entire government…
The wealth gap is freaking massive and growing. How are low and middle class people supposed to support themselves when they can't even get fair wages to support themselves and plan for retirement?
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The modern 401(k) practices emerged from one of these then-obscure tax codes, which I view as an unabashedly good outcome.
401(k)'s started to became popular in the 1970s because they allowed management to increase their tax-advantaged compensation relative to labor, whereas defined-benefit plans had stricter and more effective rules regarding management/labor compensation disparities. Then during the 1980s as corporate accounting schemes became more sophisticated preference for 401(k)'s and other defined-contribution plans exploded beca…
Switch jobs every few years? You probably weren't going to collect much in the way of a pension.
I'm not sure how much the switch has been about "corporate interests." As people became more mobile (for good reasons and bad), the idea of your retirement savings being tied up with a specific (usually large) company became less attractive to employees as well.
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The whole deal is a 'we are spending tons of cash, so we need to take it from someone' plan. This isn't a "watching out for the average person" deal.
Or maybe it's trying to close loopholes around having to pay taxes. >The whole deal is a 'we are spending tons of cash, so we need to take it from someone' plan Funny how spending tons of cash is a problem only if it benefits poor and middle class people. I never saw this outrage on trillions spent on endless wars, since that benefits rich people. But if something helps poor or middle class and hurts rich people a li…
But, of course, politicians want to let big businesses maintain their competitive advantage by making 401k have higher limits than IRAs.
> I never saw this outrage on trillions spent on endless wars, since that benefits rich people.
Tons of people have been outraged by the war, but it was politically unpopular across all income classes to be against the war in early 2000s.
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What is "Full stop"? I'm seeing it used more and more in political internet discussions
It's a way to end a statement that you feel so strongly about that you're indicating to others no amount of arguing or talking with change your opinion on it. Your mind's made up and you believe in that statement so strongly that you believe it to be unequivocally universally true.
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That's certainly middle class lifestyle in many states in the US if you have a family with kids and have never had a windfall from parents, inheritance, startup luck, etc. Trying to figure out retirement on top of that is a challenge.
That’s not middle class, it’s in the top 5% of US families.