A heretical thought on 401k, IRA, etc. …

[AK]

So … it’s generally acknowledged that people who pumped money into tax-deferred accounts before 1981 (when marginal tax rates maxed out at 70%) and withdrew after 1986 (with marginal tax rates at 28%) made out like bandits.

Is there a chance that we’ll be caught in the opposite situation? We’re putting away tax-deferred funds for a modest savings now. Will we end up paying higher tax rates on our withdrawals when we retire? That could put a bit of tarnish on our golden years.

By the time I retire, I hope to have enough money to worry about things like that 🙂

[UCGal]

I think flu has been suggesting this possibility or a similar one.

The similar idea he’s suggested is that your post retirement taxable income is high enough that you pay higher taxes on the RMD of your IRA/401k than you would have at the time you were earning it. I think he’s pumping money into Roth’s for this reason.

I am crappy at prognostication. Especially when it comes to future tax policy. I’m concentrating more on how to reduce expenses in retirement (paid off mortgage, etc) so what little money I have after taxes will cover my expenses.

[UCGal]

I think flu has been suggesting this possibility or a similar one.

The similar idea he’s suggested is that your post retirement taxable income is high enough that you pay higher taxes on the RMD of your IRA/401k than you would have at the time you were earning it. I think he’s pumping money into Roth’s for this reason.

I am crappy at prognostication. Especially when it comes to future tax policy. I’m concentrating more on how to reduce expenses in retirement (paid off mortgage, etc) so what little money I have after taxes will cover my expenses.

[UCGal]

I think flu has been suggesting this possibility or a similar one.

The similar idea he’s suggested is that your post retirement taxable income is high enough that you pay higher taxes on the RMD of your IRA/401k than you would have at the time you were earning it. I think he’s pumping money into Roth’s for this reason.

I am crappy at prognostication. Especially when it comes to future tax policy. I’m concentrating more on how to reduce expenses in retirement (paid off mortgage, etc) so what little money I have after taxes will cover my expenses.

[UCGal]

I think flu has been suggesting this possibility or a similar one.

The similar idea he’s suggested is that your post retirement taxable income is high enough that you pay higher taxes on the RMD of your IRA/401k than you would have at the time you were earning it. I think he’s pumping money into Roth’s for this reason.

I am crappy at prognostication. Especially when it comes to future tax policy. I’m concentrating more on how to reduce expenses in retirement (paid off mortgage, etc) so what little money I have after taxes will cover my expenses.

[UCGal]

I think flu has been suggesting this possibility or a similar one.

The similar idea he’s suggested is that your post retirement taxable income is high enough that you pay higher taxes on the RMD of your IRA/401k than you would have at the time you were earning it. I think he’s pumping money into Roth’s for this reason.

I am crappy at prognostication. Especially when it comes to future tax policy. I’m concentrating more on how to reduce expenses in retirement (paid off mortgage, etc) so what little money I have after taxes will cover my expenses.

[masayako]

That’s my worry exactly. That’s why we have Roth IRAs.

[masayako]

That’s my worry exactly. That’s why we have Roth IRAs.

[masayako]

That’s my worry exactly. That’s why we have Roth IRAs.

[masayako]

That’s my worry exactly. That’s why we have Roth IRAs.

[masayako]

That’s my worry exactly. That’s why we have Roth IRAs.

[blahblahblah]

Those IRAs and 401Ks are going to look real tempting when congress has to find some money to keep current on their interest payments to the overlords. They will start slowly at first, mandating that 5% of these accounts be put into treasuries that pay some small amount of interest. Of course this will grow a little bit each year and they will also slowly increase the age at which withdrawals can be made without paying penalties.

Sound far-fetched? I bet a SUPERCONGRESS sounded like crazy conspiracy talk a month ago too. And this sort of thing will be much easier to put in place now that only 13 people need to be involved instead of 535.

[blahblahblah]

Those IRAs and 401Ks are going to look real tempting when congress has to find some money to keep current on their interest payments to the overlords. They will start slowly at first, mandating that 5% of these accounts be put into treasuries that pay some small amount of interest. Of course this will grow a little bit each year and they will also slowly increase the age at which withdrawals can be made without paying penalties.

Sound far-fetched? I bet a SUPERCONGRESS sounded like crazy conspiracy talk a month ago too. And this sort of thing will be much easier to put in place now that only 13 people need to be involved instead of 535.

[blahblahblah]

Those IRAs and 401Ks are going to look real tempting when congress has to find some money to keep current on their interest payments to the overlords. They will start slowly at first, mandating that 5% of these accounts be put into treasuries that pay some small amount of interest. Of course this will grow a little bit each year and they will also slowly increase the age at which withdrawals can be made without paying penalties.

Sound far-fetched? I bet a SUPERCONGRESS sounded like crazy conspiracy talk a month ago too. And this sort of thing will be much easier to put in place now that only 13 people need to be involved instead of 535.

[blahblahblah]

Those IRAs and 401Ks are going to look real tempting when congress has to find some money to keep current on their interest payments to the overlords. They will start slowly at first, mandating that 5% of these accounts be put into treasuries that pay some small amount of interest. Of course this will grow a little bit each year and they will also slowly increase the age at which withdrawals can be made without paying penalties.

Sound far-fetched? I bet a SUPERCONGRESS sounded like crazy conspiracy talk a month ago too. And this sort of thing will be much easier to put in place now that only 13 people need to be involved instead of 535.

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