Posted on 10/08/2020 10:38:24 AM PDT by SJackson
“Even if I get banged for 40% combined state and Fed taxes, it’s better than old Stinkfinger Joe taking all of it for his DNC chums.”
That will be the center of many discussions around the kitchen table or in the family room without the tv being on.
We took out a reverse mortgage 3 years ago, your paragraph above was a discussion with our CPA and trust lawyer.
If you don’t have a monthly mortgage payment and keep your house in good shape. You have lowered future utilities, upkeep and other homeowner costs.
So if Joe becomes president, you take out enough IRA money to put in long term investments in your home to make it more liveable with lower utilities and future upkeep like new roof, hvac systems, new storm windows and good paint jobs inside and outside your home.
One of my female in laws, still works in an office in her home. She has informed her husband,”If Joe is elected, that they will go for a reverse mortgage, fix up their home and take some expensive vacations. Their kids will have smaller inheritances.” They live in a midwest snow belt and spend about one winter month in the St Augustine area. If slo joe is elected, they will buy a trailer to spend the winter in and maybe longer for lower taxes. That can be tricky with a reverse mortgage.
And not taxing 401Ks until distribution. Nice!
...To clarify my post above...
Just to be clear, my Roth 401(k) does have a limit, but it’s much higher than the Roth IRA.
It means your screwed and he wi come got your savings
Yes definitely. ROTH is another good option.
I’d rather pay low taxes up front than high or “who knows” taxes at the back. But it’s really just a risk factor.
ping
When can folks pull their money out without penalty?
AFAIK, age 59.5
Not going to happen. Government employees have some of the best retirement plans on the planet. They also can contribute to 403b and 457 plans. There is no way FED congress can exclude those supplemental plans and target 401K plans...
The US retirement funds are the largest reserve of money on the planet.
If the DEMocratic Socialists ever steal power they will confiscate the funds to buy votes and power.
They will just blatantly take it or issue worthless government bonds in lieu of cash or inflate the value away to nothing.
I think that might be a red line for a lot of people.
Tens of millions older people with nothing to live for would be a seriously formidable mob.
The dims will follow the playbook of Hugo Chavez.
Mmmmmmph. Sounds like I better plant a lagger garden and get some chickens.
But the election wont be over until December 19th.
This is what eliminating our 401k’s/IRA’s means.
Biden Affirms: I Will Eliminate Your Student Debt
10/8/2020, 10:35:44 AM · by SJackson · 52 replies
Forbes ^ | Adam S. Minsky, Esq.
Saving is racist, and it produces inequality of outcome because some people save and some don't. It is true that it is easier for higher income people to save; that will be the equity argument for removing incentives to save. Thrift savings plans will be replaced by a one size fits all plan that provides refundable tax credits to fund tax favored "savings" accounts for low income people -- just another income transfer system. Since you earn above the threshold, you will be allowed, out of your own pocket, to save the same amount in a tax favored plan. Your contributions will be capped at the welfare level, thus equalizing results.
“When can folks pull their money out without penalty?”
I have IRA’s and if they are taxed as 401k’s are then as soon as you reach 70.5 yrs of age you can withdraw whatever you want (there is a minimum you mast withdraw) but it is treated as income and taxed accordingly.
Good luck getting cash on the full amount. The bank questions every withdrawal over $499. make too many and you'll be on the LIST.
If they change the tax deductibility of traditional 401ks, the most likely response will be more people will choose Roth 401ks.
Antifa wants to loot their parents IRA's and 401-K's...BLM wants to do the same: loot the parents of Antifa thugs...
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