ROTH IRA Limits STILL at $5K??? Seriously??

[redgtxdi]

So, I figure if the gov't is gonna help out the baby boomers (or ANY of us) in any way, shape, or form, one SURE way would be to let them do it legitimately like...........

IF THEY'RE WILLING TO LIVE ON PENNIES & SAVE THEIR ASSES OFF, LET THEM DEPOSIT LOADS INTO THEIR ROTH IRA'S!!!!!!

No??

I have a SIMPLE IRA thru work which I think has a $12K limit or something utterly ridiculous like that, yet here we are in 2011 & while the gov't has allowed themselves an "assessment based" limit for future limits since 2009 (as if they need a reason to do whatever they want) they must think we're all doing quite well cuz they ain't done sh!t since!!!

(face palm)

 

[GTaudiophile]

I am surprised they still exist at all.

When our national debt is 500% GDP (when I retire most likely) I am sure they will find a way to tax your capital gains, despite what you thought.

It's their money after all, right?

 

[spacejamz]

Why is tuition reimbursement still capped at $5250 before it is considered income by the IRS? Tuition costs have been skyrocketing but this 'cap' has been the same for awhile...

My last 2 employers limited tuition reimbursement to this amount for this reason...When an MBA class costs $2000 per class, it will take awhile to finish...

 

[redgtxdi]

I'm just trying to figure out their logic. The upside is....well....WIN/WIN!

The downside is.......well......NIL!?

Is it because they'd rather make for more "disposable" income so we spend more now?? (Not that we couldn't just put it away elsewhere, anyway.)

Wanting us to spend more now might promote "capitalism" & all that I've seen from the gov't so far says they definitely don't want that, right?

 

[IronWing]

Y'alls want to translate your rants into the english language so we can figure out what it is you are going on about? U B talking in code.

 

[Bateluer]

Its a limit that most Americans don't even come close to, my guess. Little irritating, but you do have other options for investing your retirement monies.

 

[Lifted]

Increasing 401k and Roth limits is seen as a handout to wall st, which it basically is. They can basically do no wrong as the money will keep pouring in.

 

[redgtxdi]

Y'alls want to translate your rants into the english language so we can figure out what it is you are going on about? U B talking in code.

Just in case you're serious (or for someone else in case I typed the OP in anger)......

Cliffs (sorta'):

A ROTH IRA is an individual retirement account that has some good tax advantages (you don't get to deduct the contributions now, but will likely pay lower taxes later when you're older on said funds).

You can put in up to $5K annually in this type of IRA.

You can also participate in an employer's IRA plan (like a 401k or SIMPLE IRA) to add more. Usually these are participated in due to some type of employer match-plan etc. (i.e. free money from your employer)

In my case the employer plan is "overlorded" by Morgan Stanley who does average, but takes fees. Therefore I'd rather simply make the max-match amount and then contribute up to (I dunno, $10K?) into my ROTH IRA, annually to really save hard now for a better tomorrow.

Problem is, the gov't limits the amount you can contribute to $5k right now. (Thank GOD that's up from $4,000, etc. etc. years earlier). My biggest problem is I don't know why they don't raise the limit, or heck, triple it!! ENCOURAGE SAVING!!!!

But, alas, no chance.

 

[bonkers325]

Just in case you're serious (or for someone else in case I typed the OP in anger)......

Cliffs (sorta'):

A ROTH IRA is an individual retirement account that has some good tax advantages (you don't get to deduct the contributions now, but will likely pay lower taxes later when you're older on said funds).

You can put in up to $5K annually in this type of IRA.

You can also participate in an employer's IRA plan (like a 401k or SIMPLE IRA) to add more. Usually these are participated in due to some type of employer match-plan etc. (i.e. free money from your employer)

In my case the employer plan is "overlorded" by Morgan Stanley who does average, but takes fees. Therefore I'd rather simply make the max-match amount and then contribute up to (I dunno, $10K?) into my ROTH IRA, annually to really save hard now for a better tomorrow.

Problem is, the gov't limits the amount you can contribute to $5k right now. (Thank GOD that's up from $4,000, etc. etc. years earlier). My biggest problem is I don't know why they don't raise the limit, or heck, triple it!! ENCOURAGE SAVING!!!!

But, alas, no chance.

if you can afford to lock thousands of dollars into a tax-free investment account without any short-term repercussions, then you probably don't need the benefit of a tax-free investment account. it only helps the wealthy hoard more wealth, since the average salaried worker won't be able to max out their IRA contributions without impinging on their short-term financial stability.

 

[Hacp]

if you can afford to lock thousands of dollars into a tax-free investment account without any short-term repercussions, then you probably don't need the benefit of a tax-free investment account. it only helps the wealthy hoard more wealth, since the average salaried worker won't be able to max out their IRA contributions without impinging on their short-term financial stability.

Boy, when did my money I work hard for become the property of the government?

 

[Bateluer]

Boy, when did my money I work hard for become the property of the government?

Since the Social Security Act of 1935, if you're a US citizen.

 

[Hacp]

Since the Social Security Act of 1935, if you're a US citizen.

Social as in socialism. The US is becoming crappier every year.

 

[Codewiz]

if you can afford to lock thousands of dollars into a tax-free investment account without any short-term repercussions, then you probably don't need the benefit of a tax-free investment account. it only helps the wealthy hoard more wealth, since the average salaried worker won't be able to max out their IRA contributions without impinging on their short-term financial stability.

Are you serious? Really? Anyone who makes 80K or more should be putting the maximum in a Roth. Last I looked, I sure as shit don't consider 80K/year wealthy.

It is called planning for retirement. Something most people have forgotten how to do so they want the government to bail them out.

Hell I make 80K and I put 15% of my pretax salary in my 401K and I max out my Roth. In addition, I put 3K in my son's 529 every year.

And let me add, the tax benefit goes away for married couples making more than 150K. So this is not a tool the wealthy could even use.

 

[sciencewhiz]

Because of the brain-dead inflation indexing rules, it won't go up until inflation exceeds 10%.

 

[2Xtreme21]

OK, so can someone confirm my thinking is correct?

I contribute to a "ROTH BASIC" plan through Vanguard, where my contributions are made with after-tax dollars. The benefit to this is I should be able to withdraw (at age 59.5) every dollar in my account, both ones I contributed, as well as ones earned through market gains, tax free... correct?

If I were to do the opposite, which is contribute using pre-tax dollars, I would be taxed on the money in there and on whatever gains occurred during that time, right?

 

[2Xtreme21]

Boy, when did my money I work hard for become the property of the government?

Yeah sucks having roads and shit haha.

PS-- Keep the political shit outta this thread because it actually includes pretty useful information.

 

[lothar]

Because of the brain-dead inflation indexing rules, it won't go up until inflation exceeds 10%.

How then did they manage to increase it from $4,000 to $5,000 two years ago?
I don't remember when last inflation has exceeded 10%.

 

[Hacp]

Yeah sucks having roads and shit haha.

PS-- Keep the political shit outta this thread because it actually includes pretty useful information.

They had roads before the income tax.

 

[Lifted]

They had roads before the income tax.

Yes, and they were called trails.

 

[2Xtreme21]

They had roads before the income tax.

Aw hell, you're right! Lemme get my horse and buggy back out.

 

[Bateluer]

Yes, and they were called trails.

No, they were called roads. And were paved, FYI. The government doesn't need to take 50%+ of your income to build roads.

Edit - If you continue with this believe, you'll be paying 95% of your income in taxes while they complain that they need more money to provide these 'essential' services.

 

[2Xtreme21]

No, they were called roads. And were paved, FYI. The government doesn't need to take 50%+ of your income to build roads.

Wat?

And relevant:

 

[Lifted]

No, they were called roads. And were paved, FYI. The government doesn't need to take 50%+ of your income to build roads.

Edit - If you continue with this believe, you'll be paying 95% of your income in taxes while they complain that they need more money to provide these 'essential' services.

You think the US gov can survive on what, sales tax? VAT? Property tax? Sneezing tax?

In the end, all these things need to be paid for, and one way or another we will be taxed for them.

 

[Lifted]

The government doesn't need to take 50%+ of your income to build roads.

You're right. They need 50% to pay the interest on the war machine.

 

[Exterous]

if you can afford to lock thousands of dollars into a tax-free investment account without any short-term repercussions, then you probably don't need the benefit of a tax-free investment account. it only helps the wealthy hoard more wealth, since the average salaried worker won't be able to max out their IRA contributions without impinging on their short-term financial stability.

Really? I mean...really? I maxed out my IRA contribution last year and I am not even close to rich - unless you count someone making $50,000 a year rich. Come on - we already have a huge problem with people not saving for retirement and maxing out the existing contribution limits is easily attainable