republican tax increase on the middle class - trump agreable to limit 401k contributions
- Thread starter dherd
- Start date
I would have thought that an “accountant” would understand what is actually being considered.
The discussion has nothing to do with “limiting contribution” total amounts.
The discussion has nothing to do with “limiting contribution” total amounts.
as an idiot who gets his news from faux propaganda and hate radio I understand why you are always so ill informed and ignorant
The proposals under discussion would potentially cap the annual amount workers can set aside to as low as $2,400 for 401(k) accounts, several lobbyists and consultants said on Friday. Workers may currently put up to $18,000 a year in 401(k) accounts without paying taxes upfront on that money; that figure rises to $24,000 for workers over 50. When workers retire and begin to draw income from those accounts, they pay taxes on the benefits.
https://www.nytimes.com/2017/10/20/us/politics/republicans-tax-401-k.html
just keep pushing that insurance and leave the thinking to the rest of us.
The proposals under discussion would potentially cap the annual amount workers can set aside to as low as $2,400 for 401(k) accounts, several lobbyists and consultants said on Friday. Workers may currently put up to $18,000 a year in 401(k) accounts without paying taxes upfront on that money; that figure rises to $24,000 for workers over 50. When workers retire and begin to draw income from those accounts, they pay taxes on the benefits.
https://www.nytimes.com/2017/10/20/us/politics/republicans-tax-401-k.html
just keep pushing that insurance and leave the thinking to the rest of us.
Dherd today is October 25th.
“Trump shoots down plan to limit 401(k) contributions to pay for GOP tax cuts”
https://www.google.com/amp/www.chic...iz-trump-tweets-401k--20171023-story,amp.html
“Trump shoots down plan to limit 401(k) contributions to pay for GOP tax cuts”
https://www.google.com/amp/www.chic...iz-trump-tweets-401k--20171023-story,amp.html
The plan actually being discussed in congress (while intentionally being misreported by the news for morons like Dtard) is that 401ks could lose their tax deferred status. In other words.....401ks would be taxed the same as Roth IRAs.
More intentional misreporting to keep you libs wound tight. The premise being put forth (limit a savings plan to $2400 in order to pay for a tax cut)makes little sense on face value. Its more likely that the tax deferred limit amount could be lowered to $2400 while still allowing for higher contributions after tax.
More intentional misreporting to keep you libs wound tight. The premise being put forth (limit a savings plan to $2400 in order to pay for a tax cut)makes little sense on face value. Its more likely that the tax deferred limit amount could be lowered to $2400 while still allowing for higher contributions after tax.
Why anyone puts money in a 401k tax deferred only to be taxed at a ,more than likely, higher rate come retirement baffles me.
EXACTLY WHAT I SAID. TWO DAYS AGO(DATE OF YOUR LINK) HE SHOUTED NO INCREASE - TODAY HE WHISPERED HE MIGHT LIMIT - THE PROPOSA IS IN THE PROPOSED TAX BILL.
NOTHING - IS PROBABLY A PIMPLE FACED KID WHO HAS NO IDEA WHAT HE IS TALKING ABOUT.
KID OR NOT HE HAS NO IDEA WHAT HE IS TALKING ABOUT.
OR HE JUST LIKES PAYING TAXES.
No I would rather pay the taxes now at a lower rate instead of deferring them out until I retire which will be a higher rate.
Yeh but why would turn down money that your employer is matching?
Yeah I know. In my original reply I thought I said I put my money in a Roth.
My employer puts money into a separate account no matter what
Run along Mr. "Accountant". I've lost count of the number of predictions, assumptions, and opinions you've trolled here....only to run and hide when it craps out, because the media sources you link, end up being misinformed nonsense.
Tell us. Does this thread hold the same value as your predictions of a Hillary landslide victory? A Trump indictment?? One could only hope. Your ignorant posting, although comical, wouldn't be missed if you ran back to your mother's basement for the another 6 months.
I guess I’m a little confused because if you believe that trump gets his tax plan through then you should pay less taxes in the future on your withdrawals. Correct?? Then it would be silly to not do a traditional 401k because you will get the tax shelter now with less taxes in the future. Right?? Or maybe trumps plan really isn’t going anywhere. I guess my point is you can’t have it both ways. Plus the republicans are going to control the government for years to come so they should continue lowering taxes. At least that what all the Trumptards here say.
By the time I’m old enough to withdrawal my retirement taxes will have gone up and I’ll be in a higher tax bracket. Why defer paying taxes until then when I can the taxes on it now
Agreed. But behavioral economists are probably right that it would lead to less retirement investment, just causing another problem down the road.
Oddly, the media isn't focused on the real argument: do we really need a big tax cut bill? We need actual tax reform, not this dumb shit.
WTF are you talking about? It's called reading comprehension and knowledge of what is actually being discussed in D.C. Oh great. Another "link" demanding twit. LMAO. You are as intellectually defunct as Greed.
And WTH is it with you morons who always try and assert that someone is an "insurance salesman" when they aren't in that business? Additionally, how is it that having a career in insurance is supposed to be some type of put down by idiots like yourself? It's obvious.... You have nothing to really offer other than misrepresented articles written by "reporters" that couldn't explain the difference between a mutual fund and an ETF unless someone drew them a picture. Let alone describe accurately proposals of tax code changes and it's effects on retirement accounts.
Seriously, "accountant".... Why is it, you really cant discuss financial topics without misrepresenting the topic with rumor and innuendo articles?
Actually you can save on taxes in both ways. You can save in both a tax deferred 401k plan and a Roth IRA plan at the same time, now.
This makes no sense at all. while you are in retirement you are going to be in a higher tax bracket then today? You only pay a higher tax on the income in that tax bracket. You need to speak to an accountant or a benefits advisor.
Not taking either side here just stating how I understand it.
Example
I make 90,000 dollars this year
I invest 10,000 pre tax into a 401k
So then my taxable income is 80,000
Looking at the table below I would pay 10% for the 1st $18,150 dollars and 15% up to 73,800
However if my 401k is not pretax you add that on top of the 80,000
so I would pay 25% for the all of my 401k investment
Now if I wait until I am retired some of it may be in the 10% and some or all may be in the 15% or higher
this will obviously change based on other income in retirement (SS, Pension, etc)
If you have 80,000 dollars a year in other taxable income in retirement then you end up in the same place and are then at the mercy of whether tax brackets have changed in your favor or not
So it really depends on what bracket you are in now and what kind of other income you might have in retirement.
The answer is different for everybody.
That is my take unless I am missing something and I may be.
$0 - $18,150 10%
$18,150 - $73,800 $1,815.00 + 15% $18,150
$73,800 - $148,850 $10,162.50 + 25% $73,800
$148,850 - $226,850 $28,925.00 + 28% $148,850
$226,850 - $405,100 $50,765.00 + 33% $226,850
$405,100 - $457,600 $109,587.50 + 35% $405,100
$457,600 no limit $127,962.50 + 39.6% $457,600
Also I realize there are deductions, all that would change the scenarios also, so for the above example those are the numbers after all deductions.
http://www.businessinsider.com/trump-tax-plan-401k-retirement-2017-10
Please.... STFU and go away Dtard. You're like a fly at a picnic. It wasn't a problem to reference moron. Your laziness in understanding the issue makes you a fool.
Republicans are reportedly considering capping annual 401(k) contributions at $2,400 on a pre-tax basis, much lower than the current maximum contribution of $18,000 for 2017, and $18,500 for 2018.
But some versions of the rumored proposal indicate that additional retirement savings would still be possible, but would be directed to a post-tax Roth 401(k) instead. In other words, your retirement savings won't be limited, but when and how you pay taxes on that money may change.
Herd429 please refer to the tax brackets posted here. This is a good start in understanding taxes.
Can’t make this up....Congress considering raising the limits on 401ks to $20k according to CNBC.....
Hahaha.
Hahaha.
I don't think they know WTF they are going to do. There's so much proposed that pisses off too many people and then they pull back from it the next day. That's what happens when you have no real plan and are just throwing shit against the wall as quick as you can to see what sticks. The only thing we know is these fools have zero desire to actually balance a budget.
LEAD POST ON THE THREAD
POST 2
The proposals under discussion would potentially cap the annual amount workers can set aside to as low as $2,400 for 401(k) accounts, several lobbyists and consultants said on Friday. Workers may currently put up to $18,000 a year in 401(k) accounts without paying taxes upfront on that money; that figure rises to $24,000 for workers over 50. When workers retire and begin to draw income from those accounts, they pay taxes on the benefits.
POST 2
The proposals under discussion would potentially cap the annual amount workers can set aside to as low as $2,400 for 401(k) accounts, several lobbyists and consultants said on Friday. Workers may currently put up to $18,000 a year in 401(k) accounts without paying taxes upfront on that money; that figure rises to $24,000 for workers over 50. When workers retire and begin to draw income from those accounts, they pay taxes on the benefits.
As an "experienced accountant," what percentage of workers put $18,000 or more in their 401k every year?
Probably less than 3 percent. So you are for the elimination of the traditional 401k or reduction of tax deferred money.
I'm for any tax break possible for anybody possible. That said, if they lower the limit to, say, $10,000, very few people would be affected. Actually, the more affluent would be affected by a reduction in the 401k tax break, which I would think a good liberal would be in favor of.
