Why be personally responsible in saving for retirement?

[Exterous]

Nothing would be retroactive, including things on the table now, so what are you going on about?

Nothing retroactive so far. I hope that people would be against retroactive taxation but it seems California is giving it a go so we'll see what happens

One question I have is, is it just the principal that is taxed at income rates or gains too, for tax deferred accounts? Are the gains at the capital gains rate?

For now its just additional contributions once the cap has been reached that are taxed. Previous contributions and gains still fall under the tax advantaged status and its likely that future investment gains above the cap will will maintain that status as well although the wording is a bit vague

 

[Lithium381]

OP, there something you just aren't getting. The government is not going to take all the money over 200K. They are going to tax it. Same as they would have taxed it if you knew there was a 200K limit. Also these are tax deferred, you are going to pay taxes on them anyway. It's good since you can make gains on what you would have paid as taxes.

One question I have is, is it just the principal that is taxed at income rates or gains too, for tax deferred accounts? Are the gains at the capital gains rate?

i realize they're not just going to take it, over the cap . . .. . but retroactivly changing the rules . . . i'm just saying people may have chosen a different path if they had knowledge and that it's not honest to change the rules after the fact .

 

[shadow9d9]

Didn't some study find that crime rates really didn't increase (and in fact may have gone down) during the current Great Recession? I remember Richard Cohen wrote about it in the Washington Post about a year ago, stating that maybe there is a much more of a moral component to crime than liberals are willing to admit. It was an interesting perspective coming from someone who will never be confused for a social conservative.

It doesn't happen instantaneously.. it takes time.

 

[shadow9d9]

I'm sorry, that doesn't fit what he said at all. I said no excess like desserts or prime meat cuts when on welfare. I'm not saying starve people. I'm not saying to punish them. Just no excess stuff on taxpayer dime. His response is far from what you're claiming. Read it again:



I hardly think shooting me over some cake is ever "appropriate." I'm on the low end of the lower-middle class anyway, so I'm quite far from being a rich person, and rarely carry much cash with me.

I thought the discussion club was supposed to not have garbage like this in it, but more of a real discussion. Yeah... maybe not. Stay classy Craig

It fits just fine. Take away desperate people's little enjoyment left and see where it leads. Corporations are HUGELY on the taxpayer's dime while profits are at all time highs.. why should poor people suffer and get less?

 

[DaveSimmons]

i realize they're not just going to take it, over the cap . . .. . but retroactivly changing the rules . . . i'm just saying people may have chosen a different path if they had knowledge and that it's not honest to change the rules after the fact .

Tax rates change all the time for new earnings.

For 99.99% of the populace, the $3.x million cap on tax-sheltering retirement money will be a non-issue.

'm just saying people may have chosen a different path if they had knowledge

To ask again, what do you think that "different path" would be? I'm not aware of any alternative that's better than the IRA and 401k system, even with the cap. My retirement contribution advice to others wouldn't change a bit with the cap in place, because no normal person is going to reach it.

Edit: the only change I can see is eventually needing to index the cap to inflation, like with the AMT.

 

[fskimospy]

Tax rates change all the time for new earnings.

For 99.99% of the populace, the $3.x million cap on tax-sheltering retirement money will be a non-issue.



To ask again, what do you think that "different path" would be? I'm not aware of any alternative that's better than the IRA and 401k system, even with the cap. My retirement contribution advice to others wouldn't change a bit with the cap in place, because no normal person is going to reach it.

Edit: the only change I can see is eventually needing to index the cap to inflation, like with the AMT.

It is already indexed to inflation, as well as interest rates.