Posted on 10/23/2017 7:11:58 AM PDT by davikkm
If you are considered a “middle class worker,” you are about to be sucker-punched by a Republican proposal to alter the treatment of 401(k) contributions, which could make it much harder for you to save.”
I am happy to report today President Trump just tweeted there will be NO change to the 401(k) Savings and Retirement Plan in his Tax Reform.
“There will be NO change to your 401(k). This has always been a great and popular middle class tax break that works, and it stays!”
(Excerpt) Read more at investmentwatchblog.com ...
I’d suggest using this formerly racist concept known as “Math”.
The wild spending of the high tax states is masked to a large extent for the wealthy by the deduction.
I note that there have been others that have tried to explain this alien concept to you.
>>The state and local deduction only gains importance, IF the standard deduction remains the same. Reports are that the standard deduction for a couple is going up to $24,000/yr.<<
Only 18% of all taxpayers itemize.
They need to bring some itemization in addition to the standard deduction. It used to be Mortgage Interest and charitable contributions lowered AGI (but I admit that was a LONG time ago).
My mistake. I was referencing IRA’s.
Regardless, why is that limit so much less than 401(k)’s?
Put it in under your mattress.
Faith and miracles seldom happen in D.C. I expect that what the Republicans in Congress put together will be most beneficial to corporations and the wealthy at the expense of the middle class. That's just the way things are.
I just told you “math.” High tax states contribute more in taxes than do many low tax states. That is a fact. You tried to introduce the notion that high tax states are being “subsidized” by everyone else, which is completely in accurate. Furthermore, eliminating those deductions will not just affect the “wealthy”, but millions of middle class families. Rep Peter King (R-NY) floated an income cap where middle class families would retain the cut. Guess what? Paul Ryan rejected it, because the chance would not generate the $1.5 Trillion they need to offset slashing the corporate rate. In other words, they need to soak the middle class and want that money.
>>Nobody can retire on that. It takes a minimum of 25% of gross income invested at 6% to successfully retire in 40 years.<<
Depends on your “magic number” — I am ready for retirement at a MUCH lower level than that and only really started 25 years ago.
There are bazillion calculators out there — it would be prudent for ANYONE (especially people early i their careers) to model and save thoughtfully.
If I would have started in my 20s instead of my 30s I would be retired now (before 60).
I am retiring at 62 but taking SS at 64 (or maybe 68/70 depending on how much fun I want to have).
My family has been in this country for over 350 years. That’s a lot of history. And why I believe in miracles :-)
The lying media trying deceive the public in order to avoid a tax cut. They are despicable.
It's actually twice that overall, and higher than 36% in some states. Of course the higher your income the more likely you are to itemize.
But regardless of whether it's 18% or 36%, I'm one who does and based on what's being discussed my taxes are headed up.
“I knew that was all Fake News, just like most of the ‘leaks’ about the new tax bill.”
absolutely. just like the fake tax bill news today from axios based on “anonymous sources” that was posted as “breaking news”.
i really wish people would quit posting that kind of garbage here.
>>Regardless, why is that limit so much less than 401(k)’s?<<
They want to funnel people into 401(k)s.
I am self-employed and have an SEP.
There are a LOT of options. If you think you will be taxed more in retirement than now the Roth is a pretty good vehicle.
Retirement planning takes a lot of thought and a lot of professional help. The longer people wait, the more if that it takes.
I waited and paid a LOT in time and opportunity cost. If I had a time machine and could only take one trip, I would go back to the first-job me and slap me upside the head so hard I could still feel it today and say “START RETIREMENT PLANNING NOW YOU IDIOT!!”
I think SkyPilot's beef was with State Income tax deductions, not mortgage and charitable deductions.
Removal of the State Income and property tax deduction forces citizens of high tax states to scream at the tax burden imposed by State governments that have used the deduct-ability of State taxes against Federal to justify keeping them so high.
It is meant to spark a revolt from the citizenry in high tax states.
I suspect that it will work.
FReegards!
“And last report was that the 401k cap was being discussed. “
really? what “report” and who was doing the “reporting”?
Mr. or Mrs. “anonymous sources” reporting from some leftist propaganda site like axios or WaPo?
>>But regardless of whether it’s 18% or 36%, I’m one who does and based on what’s being discussed my taxes are headed up.<<
Reagan was right: the scariest words ever to hear are: “I am from the government/congress and am here to help.”
Unless and until they adopt a true flat tax the middle to upper middle class will get screwed by taxes. Irrespective of the gadgets they attempt to deploy.
Winnng!
“The President will sign what they send him.”
and you don’t think that President Trump has explicitly indicated to Congressional GOP “leaders” what he will and won’t sign?
that’s standard operating procedure for ALL Presidents in dealing with his own party in Congress.
“All they have to do is tell Trump it’s a great deal. “
Seriously? that’s what you REALLY think of President Trump? that he’s stupid?
If you start investing the max at age 30 and continue till age 67 and gain on average 7% you will have $4,973,897 at retirement age.
Now that 5 million won’t quite be $5 million in today’s dollars. But lets says it’s 2 million in today’s dollars.
I am 30 years old. I have invested 15% of my income for 10 years (since age 20) and I have no debt. Thanks to good parenting and Dave Ramsey.
If you can do 10%/year average (very doable). You will end up with $10,525,355 in 37 years.
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