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

[Exterous]

(2) the penalties are very painful for early withdrawals from IRAs, so don't treat them as your sole savings.

Not always:
http://www.smartmoney.com/personal-finance/retirement/tapping-your-ira-penalty-free-7958/
But I would agree that you should not use them as a savings account

 

[Throckmorton]

Why is there a tax break for investing in the first place? Basically another rich people subsidy. A lot of us have had to raid our IRAs since the Bush Recession started, out of necessity. Where is our tax exemption?


STFU until you have something real to complain about... like being in massive debt like most Americans

 

[matt0611]

Why is there a tax break for investing in the first place? Basically another rich people subsidy. A lot of us have had to raid our IRAs since the Bush Recession started, out of necessity. Where is our tax exemption?

To help encourage people to save and have money for retirement?

The wealthy don't even get the deductions on their IRAs as far I understand it. So its not a rich people subsidy.

 

[spidey07]

Why is there a tax break for investing in the first place? Basically another rich people subsidy. A lot of us have had to raid our IRAs since the Bush Recession started, out of necessity. Where is our tax exemption?


STFU until you have something real to complain about... like being in massive debt like most Americans

Rich people and HCE's are severely limited in what they can do with roth/IRA. These programs are squarely middle class as the rich can't use them.

 

[JS80]

Why is there a tax break for investing in the first place? Basically another rich people subsidy. A lot of us have had to raid our IRAs since the Bush Recession started, out of necessity. Where is our tax exemption?


STFU until you have something real to complain about... like being in massive debt like most Americans

lol stupid liberal post is stupid. The "rich" are not allowed to contribute to Roths and cannot deduct for IRA contributions.

 

[Throckmorton]

Rich people and HCE's are severely limited in what they can do with roth/IRA. These programs are squarely middle class as the rich can't use them.

The middle class is in debt, so the idea of investing money with a lower rate of return than the interest on their debts is asinine. The only reason they do it is the employer matches... So it's "free money" for us anyway.

 

[Throckmorton]

lol stupid liberal post is stupid. The "rich" are not allowed to contribute to Roths and cannot deduct for IRA contributions.

How would I know that unless I studied the tax code? Does Glen Beck send you FAQs on how the tax code affects the rich or what?

 

[spidey07]

How would I know that unless I studied the tax code? Does Glen Beck send you FAQs on how the tax code affects the rich or what?

Because is massively impacts how we plan and save for retirement which is the point of this thread. Since you declare he and I rich, you need to be corrected from your jealous marxist class warfare rantings.

 

[IndyColtsFan]

Why is there a tax break for investing in the first place? Basically another rich people subsidy. A lot of us have had to raid our IRAs since the Bush Recession started, out of necessity. Where is our tax exemption?

This post is silly. The government gives tax breaks to invest in retirement funds in order to incent people to invest in their own retirements. Would you rather have people say "screw it," not build up a retirement fund, and have Uncle Sam support them? SS probably won't be there for many of us and personally, I'd love to have the money I poured down that drain and invest it elsewhere.

Also, as others have noted, you're very limited with what you can do with IRAs over a certain income level, to the point where I believe all incentives are phased out.

 

[piasabird]

The US govt wastes about 2/3rds of the tax money it gets. Raising taxes is like throwing money away.

Before 1935 there were not that many cars and the population was lower and minumum wage was like 11 cents a day. (I made all this up, but I figure Democrats like being lied to.)

I am still waiting for my free healthcare!

 

[lothar]

http://retireplan.about.com/od/iras/a/2011-Roth-Ira-Income-Limits.htm

"At least you pathetic fools can contribute to an IRA. Since I can't, I will make sure to vote for candidates that will come after your Roth gains in the future."
You didn't mention "Roth" in your original post.

"At least you pathetic fools can contribute to a Roth IRA. Since I can't, I will make sure to vote for candidates that will come after your Roth gains in the future."
Don't worry, I've fixed it for you.

 

[lothar]

Speaking of personal responsibility, did you ever take personal responsibility for stealing your roommate's shit?

Link?

 

[Brainonska511]

Link?

http://forums.anandtech.com/showthread.php?t=2097982&

 

[Thump553]

How would I know that unless I studied the tax code? Does Glen Beck send you FAQs on how the tax code affects the rich or what?

Think about how much of your brain capacity you waste on garbage like sports standings, Lady Gaga, etc. and get back to me as to whether a sensible person should have at least a decent working knowledge of how the tax code affects their life. It is, after all, one of the basic frameworks of modern American life.

BTW Glen Beck has nothing to do with it. I never watch Faux News except for giggles and am probably regarded a liberal here. But being being uninformed or fiscally irresponsible has nothing to do with political philiosphy, both ends of the spectrum have plenty of both types.

And as others have pointed out already, the IRA and Roth IRA mechanisms are designed for the low and middle class, to supplement SS and our now nonexistent pensions.

 

[nonlnear]

How would I know that unless I studied the tax code? Does Glen Beck send you FAQs on how the tax code affects the rich or what?

If you were rich, your accountant would take care of it for you. If you were rich and assertive, your accountant would have taken care of it for you and then briefed you on exactly what was being done with your money and why. If you were rich, assertive, frugal, and kept relatively simple finances (relative to other rich people, that is) you would have taught this to yourself. It's really not that complicated.

 

[Throckmorton]

Because is massively impacts how we plan and save for retirement which is the point of this thread. Since you declare he and I rich, you need to be corrected from your jealous marxist class warfare rantings.

I'm not understanding how rich people not benefitting from IRAs affects me in any way... Why would I research tax rules for incomes far above mine?

 

[nonlnear]

I'm not understanding how rich people not benefitting from IRAs affects me in any way... Why would I research tax rules for incomes far above mine?

There is no shame in not knowing the tax code for brackets that don't affect you - unless you insist on making boneheaded comments that imply you know something you don't.

 

[dullard]

I'm not understanding how rich people not benefitting from IRAs affects me in any way... Why would I research tax rules for incomes far above mine?

1) Do it in case you ever do reach that income. It is good to be prepared.

2) Do it so that you can understand the tax implications when you vote.

3) Do it before you post on the subject so you look intelligent and are helpful to the thread.

 

[Exterous]

I'm not understanding how rich people not benefitting from IRAs affects me in any way... Why would I research tax rules for incomes far above mine?

So you don't look like a moron who can't be bothered to do a 5 second google search but instead tries to pretend you know what you're talking about

 

[Pulsar]

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.

While I understand your rant, you are complaining about something that 90% of Americans can't even afford to do. I think you may want to look elsewhere for things to complain about: there are more serious problems.

There are numerous ways other than ROTH IRA's to put money away for retirement. Hundreds in fact. Look into them. Ask your employer to start offering ROTH 401K (yep, they exist, with no max limit of contributions).

There are also life-insurance options that you can pay into then withdraw money against income-free that are paid for with the death benefits, though I wouldn't normally suggest those.

Do you have something against index funds, mutual funds, or stocks? Those are the generally accepted way of investing and have been for a pretty long time...

 

[Pulsar]

I'm not understanding how rich people not benefitting from IRAs affects me in any way... Why would I research tax rules for incomes far above mine?

You're a freaking idiot. YOU made the accusation about subsidies for the rich when no such subsidies exist. So if you don't want to appear as big an idiot as you already do, then actually read about the subject before you start whining about the rich people and all their subsidies.

Whomever said you're a pretty clear instigator of class warfare was dead on. You despise them for things they don't even have.

 

[Darwin333]

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.

Have you not been paying attention?

Encouraging saving is exactly the opposite of what the .gov is doing and wants to do right now.

They want you to spend every last drop you make and then some right now! They will likely be out of office when you retire so that is in "they don't give a fuck land".

 

[Darwin333]

The middle class is in debt, so the idea of investing money with a lower rate of return than the interest on their debts is asinine. The only reason they do it is the employer matches... So it's "free money" for us anyway.

Ummm, no.

I am not sure how IRAs work but I do know how 401Ks work and in almost all cases you are a fool for raiding it to pay for hard times. If times are that hard just file bankruptcy and get it over with. Your 401K (maybe IRAs, someone more familiar chime in) is one of the very few assets that is protected in bankruptcy. Liquidating a protected asset to try to hold on to a non-protected asset just a bit longer isn't a good idea in my book.

 

[werepossum]

Think about how much of your brain capacity you waste on garbage like sports standings, Lady Gaga, etc. and get back to me as to whether a sensible person should have at least a decent working knowledge of how the tax code affects their life. It is, after all, one of the basic frameworks of modern American life.

BTW Glen Beck has nothing to do with it. I never watch Faux News except for giggles and am probably regarded a liberal here. But being being uninformed or fiscally irresponsible has nothing to do with political philiosphy, both ends of the spectrum have plenty of both types.

And as others have pointed out already, the IRA and Roth IRA mechanisms are designed for the low and middle class, to supplement SS and our now nonexistent pensions.

Very true. People tend to be very uneducated about tax law. I've had people boast that they never pay taxes, and when you grill them this is based solely on receiving a tax refund. Some people literally are paying 15% - 30% of their income off the top and don't realize it even though they receive a detailed print-out on every check.

And yes, you're definitely considered a liberal here. Nothing wrong with that, as long as you remain smart and honest.

 

[drebo]

Wat?

And relevant:

Er, uhm...NOT relevant.

Everything he was talking about are regulated/controlled by LOCAL or STATE agencies.

No one in this thread is bashing state agencies for taking income. The current trend toward socialism exists at the FEDERAL level, and this is why the complaints arise. Big, huge, fat, hairy difference.