Imagine someone who puts $100,000 or so into a retirement plan... and then then use that $100,000 to buy stock is company __________. Then they just happen to get lucky and company __________ stock price goes up 1,000 times overnight. They could end up with 100 million in their IRA even though they only contributed $100,000 into it.
So even if they weren't allowed to contribute anymore money into the IRA .... they would still have 100 million in the IRA that the taxes are being deferred on.
Exactly.