You do realize that even liberal president's like FDR treated capital gains specially right?This idea, at least as explained in the article, makes no sense. Say I have $20 million throwing off $200k per year at today's crappy 1% savings rates (ignore other investments for simplification). I'm good. Then one day the bond market wakes the hell up and interest rates jump to 5%. Now my $20 million is throwing off $1 million a year and I'm supposed to immediately reduce my balance to $4 million to satisfy this proposal. After a bit of 5% rates the economy tanks and interest rates plunge back to 1% but now I have $4 million instead of $20 million.
Why this and not capital gains taxation reform? That's where the big money is.
But we can't reward people for making stupid decisions without punishing people for making smart investments.Limiting total account value seems asinine to me. You're essentially punishing people for making smart investments. Sure, limit tax advantages contributions based on income - that actually makes some sense. This does not.
Yes, there should be no limit.Contributions are limited to what $17,000/year.
40 years of contributions at the max us $680,000. Obviously hopefully you would have more due to investment gains.
IRAs are intended to be a way for normal people to save for retirement. Not a way to hide money from fair taxation.
Are you saying there shouldn't be any limit?
EDIT: Oops I appear to have confused IRA with 401K. Whatever, I think you can roll over a 401K into an IRA.
yeah, no. It is a replacement of Social Security. See, when you have a 401K deduction, you reduce your amount of social security tax base, therefore LOWERING the amount of social security return in the future.But IRAs and 401(k)s are about special tax breaks. Not about keeping what you earn. Limiting special tax breaks to serve their intended purpose is not "hating" freedom.
Not sure I understand what you're trying to say here, and apologize in advance if I have misunderstood you, but your elective deferrals to a 401k are subject to SS and Medicare tax and withholding.yeah, no. It is a replacement of Social Security. See, when you have a 401K deduction, you reduce your amount of social security tax base, therefore LOWERING the amount of social security return in the future.
And obviously if you have 3 million you no longer need incentive.yeah, no. It is a replacement of Social Security. See, when you have a 401K deduction, you reduce your amount of social security tax base, therefore LOWERING the amount of social security return in the future.
As for the withholding side, it's an INCENTIVE for people to plan their savings.
It is not a mistake. 40-50% of average capital gains are illusory "gains" caused by inflation.So? There is no reason to continue the mistakes of the past.
Because the point of retirement accounts is to save for retirement not to shelter an arbitrary amount of money from the government.Then why did you bring up how much money people need for retirement?
Central planning has deemed otherwise. The entitlement society is at the core. You may not be independent from the state. The master plan does not allow for it.You know how much I need for retirement? Exactly how much I decide - at any time - I need for retirement.
3.) Hungry young liberals who wanna change the world and blindly follow Obama even when they dont understand what he's doing.Anyone who supports this is.
1.) A stupid child who has no life experience and hasn't even begun planning for retirement and has no concept of what it may cost.
2.) An old angry liberal fuckstick who sucked at life and is jealous of others' success and feels like if they can't have it neither should anyone else.
I'm voting for whatever party I can get in that gets us a supermajority, preferably, the Dems. It is quite clear the country does not have the fortitude, or will, to do what is necessary for the US to remain what made the US or for the long term benefit of the US. Thus, I'm using my vote and personal day to day influence to convince as many people as possible to vote for shit who will absolutely, without a doubt, tank this country the fastest. That is the only sane thing to do.Central planning has deemed otherwise. The entitlement society is at the core. You may not be independent from the state. The master plan does not allow for it.
This is in part, sarcasm for the less bright among us but it's entirely possible. We'd better be a united front in the 2014 elections and we'd better retake the WH. We're so damned close to the tipping point that I even doubt a change in party control can reverse it. The Republican party and Democrat party are just different factions of a like-minded group. That being politicians.
So what after 3 Million you have to invest in a non tax differed account? Oh the horror what to do. This must be class warfare. So you basically either buy stock that with after tax money and then get taxed on the capital gains when you sell it or buy income investment that you will have a income stream from. My grandfather managed to accumulate over 400k in SDGE stock over his life and it wasn't in a taxed differed account. My grandmother and him lived very well on SS and Dividend income from the stock until he passed away.http://money.msn.com/retirement-plan/latest.aspx?post=b4e0b5f5-683c-48d5-b6aa-c5e3d5f039c7
and class warfare continues!!!
Exactly, If you where that concerned about taxes keep some in municipal bonds. Get a account with Scott Trade or something and pick out some stocks and buy them. Not rocket science folks.I have no problem with this. It applies to one type of retirement savings, nothing more. It doesn't say you can't save more than 3 million just not 3 million in this one type of account.
For those of you with 3+ million, just keep it in other types of accounts. You'll be fine.
If it works, then there will be inflation so people will have to go more into debt to buy what they want and just hope that they make their way out of it. If it doesn't have that effect, then it will just increase expenditures without revenue increases.This is one of the few tax proposals that won't screw the middle class and will make the top 1% actually pay taxes the way the rest of us do. I like it.