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UPS Retirement Topics
I need advice on 401K
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<blockquote data-quote="Jackburton" data-source="post: 1862170" data-attributes="member: 34538"><p>There are a lot of other things that will change before Roth's get a double tax hit or tax hits on the growth. Being as it's already taxed any bill even being drafted would cause such an upheaval from people they would just pull money out of their accounts, since it has already been taxed, and create even more of a problem, there won't be anything left to tax. The upper income earners are already restricted to doing Roth IRA's (116k single, 183k joint), so the only option they have is if their company does a ROTH 401k (which has no income limit) to contribute to. Anyone currently in retirement could essentially pull their whole wad out, and unlike a traditional, wouldn't be faced with a huge tax bill (think taxes on 5 mil). Congress would have to basically overturn the whole ROTH system, which in a more likely scenario, would be limits or even a discontinuation of the ROTH program as a whole. If they decided to do something of that sorts people would all together stop doing it and just invest on their own as the benefit of tax free growth would be gone, the only thing the ROTH provides differently than a traditional. </p><p></p><p>Things that come to mind that would happen first, before any inclination of a ROTH attack would be as follows.</p><p></p><p>Capital gains taxes going from 15 to 25% for EVERYONE</p><p>Lowering the personal home owners free tax break on home sales profits from 250K/500k to 100k/200k (made the last set of numbers up)</p><p>Additional taxation on traditional retirement accounts that have withdrawal rates over 100k per year.</p><p>You SSI is income based when pulling from retirement accounts, whether ROTH or Traditional, more you pull from personal, the less SSI you get.</p><p></p><p>Just a few things that I think would have to happen before they would even think of purposing</p></blockquote><p></p>
[QUOTE="Jackburton, post: 1862170, member: 34538"] There are a lot of other things that will change before Roth's get a double tax hit or tax hits on the growth. Being as it's already taxed any bill even being drafted would cause such an upheaval from people they would just pull money out of their accounts, since it has already been taxed, and create even more of a problem, there won't be anything left to tax. The upper income earners are already restricted to doing Roth IRA's (116k single, 183k joint), so the only option they have is if their company does a ROTH 401k (which has no income limit) to contribute to. Anyone currently in retirement could essentially pull their whole wad out, and unlike a traditional, wouldn't be faced with a huge tax bill (think taxes on 5 mil). Congress would have to basically overturn the whole ROTH system, which in a more likely scenario, would be limits or even a discontinuation of the ROTH program as a whole. If they decided to do something of that sorts people would all together stop doing it and just invest on their own as the benefit of tax free growth would be gone, the only thing the ROTH provides differently than a traditional. Things that come to mind that would happen first, before any inclination of a ROTH attack would be as follows. Capital gains taxes going from 15 to 25% for EVERYONE Lowering the personal home owners free tax break on home sales profits from 250K/500k to 100k/200k (made the last set of numbers up) Additional taxation on traditional retirement accounts that have withdrawal rates over 100k per year. You SSI is income based when pulling from retirement accounts, whether ROTH or Traditional, more you pull from personal, the less SSI you get. Just a few things that I think would have to happen before they would even think of purposing [/QUOTE]
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