Posted on 12/07/2020 8:52:48 AM PST by SteveH
And they are going to get them too. Restrict tax deferred benefits in an IRA or a 401K to government backed securities, it t-bills, and viola, trillions of dollars of IRA and 401K money will move to government backed securities, which means it just went into the general fund. Its going to happen. Its the last big pot of money.
If he gets in even after all the fraud, then tax rates will go up
**************
Tax rate changes in the past have led to heavy December selling. Businesses will also be impacted by the higher rates so valuations might drop.
I’ve sold off some of my more aggressive tech holdings with LT gains.
If you’re under Medicare taking a big chunk of money out can push you into a much higher Income Related Monthly Adjustment Amount (IRMAA) bracket. The monthly premium can get to be burdensome with a sharp boost in your AGI.
I didn’t say that I did. I kept my rollover separate. I was pointing out that some may have a basis in a traditional IRA, and would not see “every” dollar taxed. That’s one of the reasons for form 8606...to keep track on non-deductible contributions for your basis.
I’m curious.... why would a person make a non-deductible contribution to an IRA?
Before Roth IRAs were devised, one had a choice of still making a IRA contribution even if they exceeded the income level for a deduction. IOW, you had the choice of making a non-deductible contribution or none at all. In that time, if an IRA was the only vehicle available to you, putting non-deductible money into it was better than nothing due to the tax deferral on growth. Looking at the form 8606, that is the reason for tracking a basis in a traditional IRA and carrying it forward until withdrawal. You don't pay taxes on the basis dollars (proportion) since there was no deduction granted for them earlier.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.