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To: proxy_user
Summary: The government counts money you sock away in a retirement account as earnings when you earn it. Then they count the principal as earnings again when you withdraw it.

I wonder if they count it again when you transfer it from your 401k to an individual IRA when you change jobs.

2 posted on 09/28/2016 6:58:57 PM PDT by KarlInOhio (If Muammar Gaddafi had donated to the Clinton Foundation he would still be alive and in power today.)
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To: KarlInOhio

Well, some parts of the government, such as the Bureau of Labor Statistics, do. The IRS doesn’t count it as part of your AGI until you withdraw it.

And the author’s point is weakened by the earnings in the IRA or 401K. Unless the un-withdrawn gains are counted as income by the BLS, then some of what is withdrawn is NOT double-counted. Of course, if you lost money in your retirement account, then it is even worse.


3 posted on 09/28/2016 7:03:55 PM PDT by proxy_user
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