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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19414  
Subject: Re: What Data do you believe Date: 10/17/2000 2:02 PM
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Greetings, Rjplummer, and welcome. You wrote:

<<I think Mr. Braze is misleading far more than the WSJ article.

First of all, that 39% contributed an average of $2,000 to an IRA is not the same as 39% contributed $2,000 to an IRA. Some, perhaps many, contributed less so Mr. Braze's figure is undoubtedly exaggerated.

Second, 27% contributing at the maximum rate is nothing like 27% contributing the IRS maximum. Even if a company allows a generous 15% contibution, only those who earn $70,000 or more will be able to contribute the IRS maximum by contributing at the maximum rate.

I believe the anonymous WSJ article rather than Mr. Braze. >>


You're certainly free to do so. But I must admit I can't follow your logic here at all.

You say "39% contributed an average of $2,000 to an IRA is not the same as 39% contributed $2,000 to an IRA. " I would retort that I could care less about the "average." The maximum one can contribute to a traditional or a Roth IRA is $2K per year. If that's what 39% had an average of $2K, then 39% contributed the maximum. I grant you the wording is confusing, but the intent is not. The WSJ article dealt with the maximum contribution, not the average, and so did my article.

<<Second, 27% contributing at the maximum rate is nothing like 27% contributing the IRS maximum. Even if a company allows a generous 15% contibution, only those who earn $70,000 or more will be able to contribute the IRS maximum by contributing at the maximum rate.>>

I beg to differ. As an example, by law a profit sharing plan allows a maximum participant contribution of 15% of pay or $10,500, whichever is smaller. That is the IRS-allowed maximum. So, if I make $10K per year and contribute the maximum of 15% allowed by my plan, I can contribute only $1,500 to that plan under the law of the land. And if I contribute that $1,500, then I have contributed the maximum.

Sorry, but I just can't see where you're coming from here. Still, you're questioning the data, and that was the sole purpose and only point I was trying to make, so you're doing the right thing. Now all you have to do is verify the data yourself. :-)

Regards..Pixy
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