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URL:  http://boards.fool.com/if-you-look-at-how-the-cap-is-figured-and-thus-31134960.aspx

Subject:  Re: Do you have >$3.4M in your IRA? Date:  2/24/2014  4:12 PM
Author:  wasmick Number:  445408 of 463366

If you look at how the cap is figured (and thus what it would generate) it is based on the current historically low interest rates. Yes today the cap is $3.4 mil, but let interest rates get back to normal, the cap could easily be $1 mil.

I saw how it was figured and the assumptions thereof, where do your calculations put rates in order for it to fall to $40K?


What would that then generate, $40k? Which is what, the average income for the US (at least according to 2012 data).

Middle class enough for you?


Yup. Although - as previously stated in this thread - with a (likely) paid off house, Medicare, maybe a pension and/or Social Security, sure, middle class. Probably upper middle class.


Be careful of unintended consequences. So lets assume normal rates and a $1 mil cap. A young person starting out happens to buy the next Apple, Netflix, of Tesla and is soon at the cap limit. So now they have to invest outside of a tax deferred account. Ok, no big deal, but now they are paying taxes, at a high rate. Is that a good thing?

I don't know, is that actually how this proposed cap is suposed to work? If so please post the link. I'll gladldy read through it and then respond.
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