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

[dmcowen674]

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

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)

Seriously what does it matter when you are rich?

 

[dmcowen674]

Quote:
Originally Posted by Bateluer
Since the Social Security Act of 1935, if you're a US citizen.

Social as in socialism.

The US is becoming crappier every year.

Seriously why are you still here?

 

[Zebo]

Why would you want to?You think govt is gonna let you keep it? Let alone tax free?

LOLbwaahhaaaaa

And to answer your question "still"??? WTF are you talking about goes up like every two years. Started at only $2000 just 10 years ago. Then it went 3k then 4K etc

 

[Zebo]

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.

Some truth to that. Try and start a " i'm going to buy a Wendys franchise or two and that will be my retirement" fund. You can't wall street only.

 

[nonlnear]

Some truth to that. Try and start a " i'm going to buy a Wendys franchise or two and that will be my retirement" fund. You can't wall street only.

This is false. A self-directed Roth IRA can contain many kinds of assets that are not Wall Street products. Truly self-directed Roth IRAs are not marketed aggressively by the usual suspects because they don't funnel money into the Wall Street fee machine, but they are out there for those who seek them out.

 

[Tequila]

You're basically correct. You can also convert a traditional IRA to a Roth. They have in the past allowed you to spread the tax consequences of that conversion over multiple years, but I THINK the rule now is you get the entire whammy immediately if you convert. In other words, say you have 150k in a traditional IRA and convert all of it to a Roth. This year you have an additional $150k in taxable income (very painful one time shot). This was a smart thing to do a few years back when the market crashed if you were unemployed/underemployed then.

Just because you convert 150k to a Roth doesn't mean you pay taxes on all 150k. A lot of people get this wrong. You pay taxes on earnings and any deductable contributions you made to your traditional IRA. Non deductable contributions do not get taxed. This is why the situation is different for each person out there. I know several people who started out with a low salary and initially made deductable contributions but later made enough to not qualify but they kept contributing but as non-deductable.

Just got to make sure you filed those form 8606 when you made non deductible contributions to keep track of your basis.

 

[Tequila]

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

I was able to max my IRA when I first started working in the 90s when I started out making 40k. Back then I certainly wasn't rich but I had discipline to save, invest and live cheap. After a few years and raises it was pretty easy to max my 401k and IRA and have been doing so for 20+ years now.

Anyone who can't max an IRA at 5k a year is a pretty bad saver. I find they are also usually terrible investors who make comments like "Wall Street is rigged" lol.

 

[lothar]

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.

The rate of return is still better than the foolishness of social security...
The idea of investing money in SS with a lower rate of return than the interest on their debts AND the stock markets is asinine.

 

[Zebo]

....
http://washingtonexaminer.com/blogs...ope-starts-confiscating-private-pension-funds

 

[bhanson]

....
http://washingtonexaminer.com/blogs...ope-starts-confiscating-private-pension-funds

That is pretty stupid.

So are the people in this thread that think Roth IRAs are for the rich.

 

[piasabird]

Put your capital gains and stocks in your IRA Account. Wise up. Open up a ROTH for your children also.