President Obama Proposes Cap On Retirement Savings

[DC Tom]

That's what I meant when I said the "max you can put in over your lifetime." It creates an annual cap and essentially a lifetime cap. That is, if your balance reaches $3 million before you retire, then you can't put anymore into tax-deferred accounts.

 

Btw, as LA pointed out, I haven't said i think it's a good/bad idea. My entire point all along is that Tasker's statement is over the top:

 

I thought it referred to the max you can accrue, in an "Oh, you've got three million saved? Yeah, that's enough for you, we're taking the rest."

 

You may already know this, but I believe (not 100% certain) that if you ever roll over funds from one tax-deferred account to another, the exact amount of the rollover must be reported to the IRS by your financial institution, and you are required to report the amount of the rollover on your own tax return. Not the same thing as continuous tracking of your accounts, but something to be aware of if government intrusion in your financial affairs concerns you.

 

I'm 100% certain. I had to do that this year.

[B-Large]

STOP MAKING ****ty ARGUMENTS.

 

I will repeat myself:

 

How is it ****ty argument? SS and Medicare are earned entitlements through years of contributions. The tax deferred nature of a 401K is a government incentive to save money, lets call it a loophole for all intents and puposes. I didn't say it was a bad thing to encourage people to save for retirement, but it doesn't change the fact that government should not necessarily be able to chose which behaviors are desirable and which are not.

 

I don't think in any post, at anytime have I implied that people's money is the State's money first. This system of deductions, credits, and other tax devices is in place for one reason, to give the Government more say over each and every Americans life (for the most part the devices are productive and well intentioned, for th emost part). Why can't the Government collect their flat amount from every citizen and allow you, me and every other Amercians to chose where they want to spend or save their money, and it what amounts?

[TPS]

I thought it referred to the max you can accrue, in an "Oh, you've got three million saved? Yeah, that's enough for you, we're taking the rest."

 

From the article:

 

The Treasury Department says its proposal would still allow existing accounts to continue to grow tax-free until distributions occur, but it would prevent new contributions once a saver hits the cap.

If the IRS said it was going to take away your accruals past $3million, then I could understand Tasker's outrage.

[Chef Jim]

That's what I meant when I said the "max you can put in over your lifetime." It creates an annual cap and essentially a lifetime cap. That is, if your balance reaches $3 million before you retire, then you can't put anymore into tax-deferred accounts.

 

 

Dude, we know what the proposal says. My/our question to you is why they need to do this? And if you say anyting other than govermnent is made up of money grubbing special interest whores you'd be 100% wrong!

 

And the other question is where the !@#$ did they come up with $205k. That's it...$205k is enough, you don't need any more tax incentives. You're now officially rich....run along skippy.

 

From the article:

 

If the IRS said it was going to take away your accruals past $3million, then I could understand Tasker's outrage.

 

Why at $3mil does one lose their ability to tax deduct retirement contributions? Give me a good rational reason.

[B-Man]

 

Why at $3mil does one lose their ability to tax deduct retirement contributions? Give me a good rational reason.

 

 

"We’re not, we’re not trying to push financial reform because we begrudge success that’s fairly earned. I mean, I do think at a certain point you’ve made enough money. " - President Barack Obama........ April 2010

 

 

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[We Come In Peace]

Give me a good rational reason.

 

[TPS]

 

 

Dude, we know what the proposal says. My/our question to you is why they need to do this? And if you say anyting other than govermnent is made up of money grubbing special interest whores you'd be 100% wrong!

 

And the other question is where the !@#$ did they come up with $205k. That's it...$205k is enough, you don't need any more tax incentives. You're now officially rich....run along skippy.

 

 

 

Why at $3mil does one lose their ability to tax deduct retirement contributions? Give me a good rational reason.

I thought I answered it by saying in the age of austerity everything is on the table, and everyone will lose in the name of deficit reduction.

How do they come up with tax brackets and cap values? They're bureaucrats, they probably spend several meetings working this stuff out....

 

[Chef Jim]

I thought I answered it by saying in the age of austerity everything is on the table, and everyone will lose in the name of deficit reduction.

How do they come up with tax brackets and cap values? They're bureaucrats, they probably spend several meetings working this stuff out....

 

No! Why have we gotten to a point of austerity!! :wallbash:

[TPS]

 

 

No! Why have we gotten to a point of austerity!! :wallbash:

Uh...Bush's wars and tax cuts, and a global recession?

[TakeYouToTasker]

Worth noting:

 

http://www.breitbart.com/Big-Government/2013/04/23/Obama-s-3-Million-Retirement-Cap-Would-Not-Apply-To-Himself

 

"The limit would not apply to Obama’s own pension, which is worth at least $5 million, because it is not in a tax-advantaged account, according to Brian Graff, executive director of the American Society of Pension Professionals & Actuaries. Obama’s pension, which guarantees him a Cabinet-level salary for life indexed to inflation, is a “non-qualified deferred compensation plan, similar to what corporate executives get,” he says."

[Chef Jim]

Let's say someone making $60k a year inherits a $3mill IRA. Now their no longer able to contribute to a qualified plan. Dumb ass proposal.

[TPS]

Worth noting:

 

http://www.breitbart.com/Big-Government/2013/04/23/Obama-s-3-Million-Retirement-Cap-Would-Not-Apply-To-Himself

 

"The limit would not apply to Obama’s own pension, which is worth at least $5 million, because it is not in a tax-advantaged account, according to Brian Graff, executive director of the American Society of Pension Professionals & Actuaries. Obama’s pension, which guarantees him a Cabinet-level salary for life indexed to inflation, is a “non-qualified deferred compensation plan, similar to what corporate executives get,” he says."

of course, and he gets the best healthcare package in the world too. It's self-interest for those who make the laws...

[Chef Jim]

And you do realize this is away to increase taxes without calling it a tax increase. Clever, very clever.

[TPS]

And you do realize this is away to increase taxes without calling it a tax increase. Clever, very clever.

And changing to the chained CPI is way to cut spending without calling it a cut. Politicians...

[meazza]

And changing to the chained CPI is way to cut spending without calling it a cut. Politicians...

 

Cry me a river. You should see how much I paid in taxes this year

[3rdnlng]

Cry me a river. You should see how much I paid in taxes this year

 

 

Yes, but you get your healthcare for free.

[meazza]

Yes, but you get your healthcare for free.

 

 

And we also have fine roads. I hit a pot hole last year that blew out not one but two wheels at the same time.

 

Paradise.

[Chef Jim]

And changing to the chained CPI is way to cut spending without calling it a cut. Politicians...

 

I don't care if they call it turd removal as long as they cut spending. I do however have an issue with them proposing a tax increase and not referring to it as such.

Edited April 24, 2013 by Chef Jim