The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/madcapitalist-ltltltltthey-wouldnt-get-19457031.aspx

Subject:  Re: no matching 401k vs. Roth IRA Date:  8/14/2003  12:47 PM
Author:  JAFO31 Number:  36930 of 75636

MadCapitalist:

<<<<They wouldn't get away with taxing a Roth IRA. It would be a political death sentence.>>>

{{{Back in the olden days when I started my TSA at Penn State, you could take out money and just pay the taxes on it. Two years later, there was a 10% penalty added to the price of withdrawal and I believe this was a Federal tax change. Remember that high income folks don't have Roths for the most part because they couldn't contribute or convert and they all vote.}}}

"The wealthy only make up a very small proportion of the votes in America. Roth IRA contributions begin phasing out at $95,000 for single filers and $160,000 for married couples. There aren't a heck of a lot of voters in these categories. "

But the wealthy contribute a ton to politicians and certainly are benefitting hugely from the recent tax cuts, especially when comparing families without children.

Regards, JAFO


Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us