Removing 401ks?

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Removing 401ks?

Post by cswift01 »

Interesting to see the numbers on who saves with 401ks

https://qz.com/1112734/the-unpopular-ca ... -cut-plan/

cooper
Posts: 11
Joined: Thu Jun 15, 2017 1:58 pm

Re: Removing 401ks?

Post by cooper »

Any cap proposal will be met with huge opposition. I will vote against all lawmakers who Support it.

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Removing 401ks?

Post by cswift01 »

cswift01 wrote:Interesting to see the numbers on who saves with 401ks

https://qz.com/1112734/the-unpopular-ca ... -cut-plan/
What a freak show. I can't imagine crazier.

cooper
Posts: 11
Joined: Thu Jun 15, 2017 1:58 pm

Re: Removing 401ks?

Post by cooper »

Freak show? I don't get the meaning.

MoveOver!
Posts: 10
Joined: Tue Apr 04, 2017 9:16 pm

Re: Removing 401ks?

Post by MoveOver! »

This will not happen. The American public would vote them all out.

Carmen909
Posts: 109
Joined: Sun Dec 04, 2016 12:16 am

Re: Removing 401ks?

Post by Carmen909 »

This has been confusing me all week, but now I understand and it pisses me off. It boils down to them saying they'll give me a tax cut of $4000 but will take away my tax deduction which saves me $8000 in taxes.

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Removing 401ks?

Post by cswift01 »

Carmen909 wrote:This has been confusing me all week, but now I understand and it pisses me off. It boils down to them saying they'll give me a tax cut of $4000 but will take away my tax deduction which saves me $8000 in taxes.
They have to get the money somehow after they repeal the estate and minimum taxes.

SnareMV17
Posts: 176
Joined: Thu Jan 10, 2013 9:06 am

Re: Removing 401ks?

Post by SnareMV17 »

I really dislike how much that article promotes "progressive" redistribution of wealth. They act as if the only reason poorer people/families are poor is because of the tax system. Those same families don't pay a dime of taxes. I think financial illiteracy has as much to do with the wealth gap as anything else. It means a completely different way of viewing your life and your potential as a wage earner.
"Get your money for nothin', and your chicks for free."

Following TSPCalc strategy #64902.

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evilanne
Posts: 2067
Joined: Thu May 14, 2015 6:52 pm

Re: Removing 401ks?

Post by evilanne »

It wasn't until early 2000's that they increased cap from 10% earning on TSP Contributions. It was raised 1% per year for 5 years and then changed to the IRC limitation. Roth didn't come out until 2012. I never contributed to Roth in TSP. In retrospect, I think it makes sense to have part of your contribution in Roth. If you contribute 10% of your salary your entire career and average 8-12% RoR on your TSP using traditional contributions, you will more than likely end up in about the same tax bracket in retirement under current. If you get higher RoR or wait until MRDs for withdrawals, you will likely be in higher tax bracket at some point. For those that are married and one spouse dies, the surviving spouse's taxes will increase based on the single filing status tax bracket.

The coverage of this issue is very political, IMO. Some articles focus on the CAP of $2400, implying that this is all you can contribute to your retirement accounts. I think the intent based on some of the news coverage is to keep the same limitation (maybe even increasing amount) but capping the tax deferred amount to $2400 which will increase current taxable income/tax receipts. Since Roth accounts grow tax free, future tax receipts will be reduced at withdrawal. If you look at how much your account may grow in the future, it is possible that the taxes that you pay currently on the Roth portion of your account will result in less taxes over your lifetime. Overall it should be a wash...pay now or pay later.

Scorpio70
Posts: 432
Joined: Thu Dec 24, 2015 11:49 am

Re: Removing 401ks?

Post by Scorpio70 »

While that may be true about it being a wash, I personally do not trust the Government long term. That article basically says that people have more money saved because they are rich. I know a lot of people that have saved a lot on less income. It is all about priorities, and income shaming people never factor that. I want to add to my existing nest egg, not create a new one.

SnareMV17
Posts: 176
Joined: Thu Jan 10, 2013 9:06 am

Re: Removing 401ks?

Post by SnareMV17 »

Scorpio70 wrote:While that may be true about it being a wash, I personally do not trust the Government long term. That article basically says that people have more money saved because they are rich. I know a lot of people that have saved a lot on less income. It is all about priorities, and income shaming people never factor that. I want to add to my existing nest egg, not create a new one.
Agreed. I am also no fan of income shaming. It’s about motivation and priorities. I know plenty of families who have the ability and intelligence to make far more money than they currently do, and therefore have more opportunity to save. It doesn’t mean they take advantage of those opportunities. Saving just isn’t a priority for many families. I attribute it to the vast financial illiteracy in this country. But it’s not all to be blamed solely on ignorance.
"Get your money for nothin', and your chicks for free."

Following TSPCalc strategy #64902.

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