Feds eye your 401k.

#126
#126
utvolpj said:
But self-labeled fiscal conservatives have been screaming "don't touch my SS" for years knowing this was coming. It's always the attitude of stopping the other guy's entitlement programs but leave mine alone
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Touch my SS all they want. They do anyway.
 
#127
#127
LouderVol said:
Touch my SS all they want. They do anyway.
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2hgiev.jpg
 
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#128
#128
volinbham said:
I'm somewhat sympathetic to this given there is forced contribution. It is different than entitlements that are essentially direct transfer payments.

Now if SS was run like a pension (ye ole "lockbox" and investment portfolio to grow the funds) it would be more palatable.
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Isn't every dollar spent by the govt from a forced contribution? Argue how it's named but it only gets in the coffers one way
 
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#129
#129
utvolpj said:
Isn't every dollar spent by the govt from a forced contribution? Argue how it's named but it only gets in the coffers one way
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I guess but most are not taken with a promise of a specific return - IOW, there is a contract with the government guaranteeing me (a specific individual) some compensation based on the taking for both SS and Medicare. That is distinct from the general taking.

The urge to protect SS while lowering other spending is recognizing the contract between myself and the government. Most of the other spending is not contractually linked to me as an individual and at best is linked to me if my situation fits certain guidelines.
 
#134
#134
#135
#135
SpaceCoastVol said:
How would that 'get' Thiel? What he has is in a ROTH, tax free, so if he had to sell it it's no skin off his nose. I just see typical government douchebaggery, creating a ton of problems for the average person to 'get' a few fortunate.

Frankly I think all lottery winnings should be taxed at 90%
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It wouldn't "get" him specifically (or anybody else who has already done it) - it sounds like it would prevent others from trying to put a private placement in an IRA.

It's typical wealth envy/class conflict/that's "unfair" political fodder.
 
#136
#136
05_never_again said:
It wouldn't "get" him specifically (or anybody else who has already done it) - it sounds like it would prevent others from trying to put a private placement in an IRA.

It's typical wealth envy/class conflict/that's "unfair" political fodder.
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Exactly. typical class envy. One guy hits a broken bat grand slam in the bottom of the 9th with 2 strikes and Randy Johnson throwing in his prime and they act like it is a thing anyone can pull off so they make a rule that anything hit with a broken bat doesn't count.
 
#137
#137
SpaceCoastVol said:
Exactly. typical class envy. One guy hits a broken bat grand slam in the bottom of the 9th with 2 strikes and Randy Johnson throwing in his prime and they act like it is a thing anyone can pull off so they make a rule that anything hit with a broken bat doesn't count.
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Well, according to this, it actually would "get" him because the rule forces withdrawals from IRAs if the balance is over $10m. His is worth about $5b, so he'd have to withdraw virtually the entire account and pay tax on it.

https://www.cnbc.com/2021/09/17/hou...ter-thiel-to-pull-5-billion-from-his-ira.html

But you're totally right - he followed the rule completely, and after the fact they are like "Wait, you made too much money doing that; you have to withdraw it now and pay tax on it even though the entire point behind the creation of that account was that you didn't have to pay any additional tax on it."
 
#138
#138
05_never_again said:
Well, according to this, it actually would "get" him because the rule forces withdrawals from IRAs if the balance is over $10m. His is worth about $5b, so he'd have to withdraw virtually the entire account and pay tax on it.

https://www.cnbc.com/2021/09/17/hou...ter-thiel-to-pull-5-billion-from-his-ira.html

But you're totally right - he followed the rule completely, and after the fact they are like "Wait, you made too much money doing that; you have to withdraw it now and pay tax on it even though the entire point behind the creation of that account was that you didn't have to pay any additional tax on it."
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How so? It's a ROTH... no tax due. Now if those assholes change THAT rule, everyone on this board that has a ROTH should be terrified, because you are next.
 
#139
#139
SpaceCoastVol said:
How so? It's a ROTH... no tax due.
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They are moving the goalposts/changing the rules in the middle of the game for their benefit. They want to change the rule so that you don't have to pay tax...unless you have "too much money" ($10m or more) in which case they'll make you withdraw any amount over that and pay tax.

Over time, I bet anybody with a 6 figure balance in a Roth will be forced to withdraw something and pay tax.
 
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#140
#140
05_never_again said:
Well, according to this, it actually would "get" him because the rule forces withdrawals from IRAs if the balance is over $10m. His is worth about $5b, so he'd have to withdraw virtually the entire account and pay tax on it.

https://www.cnbc.com/2021/09/17/hou...ter-thiel-to-pull-5-billion-from-his-ira.html

But you're totally right - he followed the rule completely, and after the fact they are like "Wait, you made too much money doing that; you have to withdraw it now and pay tax on it even though the entire point behind the creation of that account was that you didn't have to pay any additional tax on it."
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Government: creates Roth with ****** limits no one could retire on
Peter Thiel: puts investments in Roth under the limits that turn out to be wildly successful
Government: wait that's illegal
 
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#141
#141
Going after Thiel would be a bull **** move. Are they going to go after every tax payer that is the most successful at investing according to the government’s own rules in every situation?

This creates an absolute distrust of EVERYTHING they do. Own government bonds? Sorry, we’re going to only return 90% of the principal. Convert your IRA to a Roth and pony up the taxes on the front end? Sorry, we’re going to start taxing your withdrawals also. Donate a million dollars to charity? Yea, we’re not going to allow that as a tax deduction after all. Own a business and invest in equipment to take the immediate tax relief? Sorry, we’ve changed our mind. You’ll need to spread that deduction out over the next 20 years. Own a business and have the building in the owner’s name and rent the space to the business? Sorry, you can’t do that anymore. We’ve over spent and need to tax you some more.
 
#142
#142
IIRC, all interest payments, including credit cards and personal loans, were once deductible on individual returns. And Social Security ”benefits” were not taxed.
 
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