UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next
Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: IRA's, Keoghs, income limits, HELP! Date: 4/20/1998 12:26 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<<< But I wonder how many people are (a) eligible for a fully deductible
IRA >>Well over half.In 1998 the limit for full deductibility for a
couple is $50K, well over the $42K median household income. In addition
many couples with higher incomes will be able to deduct a spousal IRA
because the primary breadwinners pension plan no longer taints the
spouse.
<<(b) are able to afford it.
>>IMHO, almost all of the above.
However, many people choose not to fund the IRA. In 1996 the IRS reports 3.9 million tax returns deducted about $7.7 billion. This is 3.5% of tax returns.

Well, we have a problem here. You claim that "almost all who are eligible for an IRA can afford it." But when we look at the actual figures, it would appear that the people, themselves, _don't_ seem to think that they can afford it.

In several decades of beating my head into the wall, I have finally resigned myself to the fact that other people think that they are more of an expert in their own life than I am. And this is why I said that most people who are eligible for a deductable IRA can't afford to fund it. The evidence supports this statement (although, of course, there could be alternative explanations.)
Nonetheless, the fact is that very few people put money into a deductible IRA, for whatever reasons, so it's not worth spending much time on that subject.
Regards,
Ray
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement