Should there be a limit on how much you can save in an IRA? (1 Viewer)

[IntenseSaint]

Because IRAs are tax free until money is used for retirement or withdrawn early, should there be a limit on these kind of accounts?

 

[bozoka45]

There is.

 

[El Caliente]

There is.

Yeah, thanks to new laws you are capped at $3 mil. Luckily I will never have a problem with having $3mil in my IRA.

Obama Budget to Cap Retirement Accounts at $3 Million

 

[IntenseSaint]

Yeah, thanks to new laws you are capped at $3 mil. Luckily I will never have a problem with having $3mil in my IRA.

Obama Budget to Cap Retirement Accounts at $3 Million

This is a proposal isn't it. Not law.

 

[Det. Brees]

Once you earn over a certain amount of money you lose the tax break on a IRA. The last time i looked,several year ago, it was around 65k.
At that point a SEP.is an option. It only allows you to invest up to 25% of you income and receive a tax break.

 

[El Caliente]

This is a proposal isn't it. Not law.

You are right, and I am wrong (on it being enacted). Should be interesting to see how all of this comes out in the wash. Like I said, I will never have this problem, but there is definitely a class warfare going on for both sides.

 

[Det. Brees]

Class warfare. I don't get why people do not want others to achieve the American dream and become wealthy.

 

[CajunSaint]

I don't understand either why people would want to limit this.

My answer is no. We should not limit iras.

 

[Sun Wukong]

Class warfare. I don't get why people do not want others to achieve the American dream and become wealthy.

Because with money comes status power, and if everyone has money that status and power is lessened.

 

[baarbogast]

On the surface unlimited deposits into IRAs looks good. I wonder what it would do to the yearly tax revenue the govt. wants for infrastructure/defense/payroll...etc

 

[Det. Brees]

Because with money comes status power, and if everyone has money that status and power is lessened.

So are you saying the wealthy are wanting to tax the wealthy so there will be less wealthy people so there will have more power for those that have money. Because I see it differently.

 

[IntenseSaint]

Once you earn over a certain amount of money you lose the tax break on a IRA. The last time i looked,several year ago, it was around 65k.
At that point a SEP.is an option. It only allows you to invest up to 25% of you income and receive a tax break.

Wait really? Then why would anyone want to have a law on how much you are allowed to save?

 

[CoolBrees1]

No limit.......

 

[Det. Brees]

Wait really? Then why would anyone want to have a law on how much you are allowed to save?

For single filers: $59,000 to $69,000For head of household filers: $59,000 to $69,000For married couples filing jointly: $95,000 to $115,000For married couples filing separately: $0 to $10,000If your income for the year is below the phaseout limits, your IRA contribution is fully tax-deductible. If your income falls within the phase out range, your IRA contribution will be partially deductible. If your income falls above the phase out range, none of your IRA contribution will be deductible.

 

[Det. Brees]

For tax year*2013, the dollar limits for IRA contributions are:$5,500 if you are age 49 or younger,$6,500 if you are age 50 or older