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13. Your taxes would go up now, but be lower in retirement.

Sat Oct 21, 2017, 01:44 PM

Oct 2017

Some would win, some would lose. It depends on whether your tax rate would anyway be higher or lower in retirement.

The biggest winners (surprise, surprise) would be the rich people who will have high taxes in retirement anyway. Especially if their tax rate is higher in retirement, they gain by paying taxes now at a lower rate and also by getting all the interest and gains tax-free.

If you expect your taxes to be much lower in retirement (like most of the middle class), then a Roth 401(k) isn't a good idea. The growth is still tax-free, but you're better off waiting to pay taxes at the lower rate.

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There's talk of capping 401(k) contributions at $2,400 per year [View all] RandySF Oct 2017 OP

A proposal that is magnificent in its stupidity. Americans need MORE, not less, encouragement and spooky3 Oct 2017 #1

I know exactly what they'll say RandySF Oct 2017 #3

Some may also tend to put more into the "wild west" stock market. KY_EnviroGuy Oct 2017 #21

most 401K go into the market, Hamlette Oct 2017 #59

It is the Mona Lisa of stupidity. grantcart Oct 2017 #53

Work until you die. -Signed GOP JDC Oct 2017 #2

These assholes want civil slaves. Lint Head Oct 2017 #4

Citizens with enough money to make them somewhat comfortable Eliot Rosewater Oct 2017 #5

What's really sad. RandySF Oct 2017 #28

...and it gets worse. Xolodno Oct 2017 #72

The Republican Party's greatest accomplishment... RandySF Oct 2017 #73

Well...yeah... Xolodno Oct 2017 #75

Sarah Silverman new HULU show "I love you America" Eliot Rosewater Oct 2017 #89

If they get this passed, next step is... roamer65 Oct 2017 #6

Rotten bastards. smirkymonkey Oct 2017 #7

Along with cuts to Medicare. They want us destitute when we retire. nt Irish_Dem Oct 2017 #8

Just to be clear, the same total contribution limits would remain unblock Oct 2017 #9

So my taxes go up. RandySF Oct 2017 #10

Your taxes would go up now, but be lower in retirement. unblock Oct 2017 #13

No guarantee they will be lower in retirement. roamer65 Oct 2017 #17

Forecasting is always dicey, but yeah. unblock Oct 2017 #18

401 K's are all that is left...since pensions have been pretty much destroyed....another gift from Demsrule86 Oct 2017 #81

Its a huge tax increase on the middle class. roamer65 Oct 2017 #11

Exactly RandySF Oct 2017 #12

Due to its $18k cap, 401ks are a specific middle class savings vehicle. roamer65 Oct 2017 #16

When talking tax brackets, Igel Oct 2017 #24

Anybody who can put away $18k a year isn't middle class fescuerescue Oct 2017 #30

Wrong GulfCoast66 Oct 2017 #33

Well you can still save as much as you want to. fescuerescue Oct 2017 #42

You suggesting I do not pay my fair share? GulfCoast66 Oct 2017 #45

not at all fescuerescue Oct 2017 #60

I am comfortable with what I do to help the less fortunate. GulfCoast66 Oct 2017 #65

Perhaps, but plenty of middle class people can afford to save more than $2400 TexasBushwhacker Oct 2017 #36

You're flat out wrong GP6971 Oct 2017 #51

My wife and I come close to that on $80K gross income NickB79 Oct 2017 #58

If you have enough extra income to set aside $18k a year fescuerescue Oct 2017 #61

Or you live BELOW your means Drahthaardogs Oct 2017 #69

...... A HERETIC I AM Oct 2017 #79

That's what mine is for JustAnotherGen Oct 2017 #80

Wait, I thought MichMary Oct 2017 #14

You never heard that from me. RandySF Oct 2017 #15

401Ks of today are often not as good as pensions of the past n/t TexasBushwhacker Oct 2017 #38

But they are often better. GulfCoast66 Oct 2017 #46

Of course because the rich dont need it Thrill Oct 2017 #19

This message was self-deleted by its author RandySF Oct 2017 #41

How about we put a limit on the mortgage interest deduction? krispos42 Oct 2017 #20

Got my vote. roamer65 Oct 2017 #23

Do you think that's right for TANF and other programs, too? Igel Oct 2017 #25

I believe government policy across the board should encourage smaller families going forward. roamer65 Oct 2017 #31

Hardly anyone gets TANF anymore anyway TexasBushwhacker Oct 2017 #39

If you can actually write off interest on a HeartachesNhangovers Oct 2017 #44

There already is a ceiling on the mortgage deduction... Rollo Oct 2017 #50

Get your running shoes on. KY_EnviroGuy Oct 2017 #22

They should raise the IRA contribution limit to match that of the 401k Rollo Oct 2017 #26

The limitation may include ira's. RandySF Oct 2017 #27

There should be no decrease in either 401k or IRA. Instead the IRA limit should be increased to... Rollo Oct 2017 #32

I agree. 401Ks often have employer contributions TexasBushwhacker Oct 2017 #40

It's probably because the working class has no lobbyists... Rollo Oct 2017 #48

Fine by me. It's just a way for the 1%'ers to lower the tax burden anyway fescuerescue Oct 2017 #29

NO! The 401k or IRA deduction is not just for wealthy!!! Rollo Oct 2017 #35

This is what Republicans are trying to do. RandySF Oct 2017 #64

No, the GOP is not trying to increase the IRA limit to same as the 401K limit!!!!!!!!!!!!!!!!!!!!!!! Rollo Oct 2017 #68

I mean they are pitting the poor and middle class against each other. RandySF Oct 2017 #71

An IRA is not your only vehicle A HERETIC I AM Oct 2017 #78

What makes you think I haven't done that, too? Rollo Oct 2017 #87

Bullshit RandySF Oct 2017 #37

This message was self-deleted by its author GulfCoast66 Oct 2017 #47

Then close the tax loopholes for the wealthy. roamer65 Oct 2017 #49

I'm all for closing tax loopholes fescuerescue Oct 2017 #63

No everyone making more than you is the 1% GulfCoast66 Oct 2017 #52

Actually the wealthy use the 401k as a tool to shelter millions fescuerescue Oct 2017 #62

Incorrect. 18k is the limit of tax deferred income GulfCoast66 Oct 2017 #66

There are loopholes fescuerescue Oct 2017 #83

Are sure you are not meaning an IRA? GulfCoast66 Oct 2017 #88

thats a trivial restriction actually fescuerescue Oct 2017 #90

Investing 101 RandySF Oct 2017 #77

Vey good! Now lets skip ahead to Investing 404 fescuerescue Oct 2017 #84

An IRA is not the same as a 401k. n/t tammywammy Oct 2017 #86

I may have to use my extra income to buy guns at a pawn shop Ilsa Oct 2017 #34

This would be revenue neutral. Where does Trump Inc make money? KentuckyWoman Oct 2017 #43

I think Wallstreet Turbineguy Oct 2017 #54

remember when 401ks were going to be better than pensions? DonCoquixote Oct 2017 #55

So the Republicans eliminate the Defined Benifit Pensions and push the 401k doc03 Oct 2017 #56

So much for help for the middle class mcar Oct 2017 #57

I am fairly confident they will never do this, or eliminate SALT deductions. tritsofme Oct 2017 #67

No. It is not to "support broad reductions in individual tax rates" jmowreader Oct 2017 #70

Wow. Enforced poverty at the end of life. Social Security under threat, company pensions wrecked... Hekate Oct 2017 #74

i'll keep my "wealth" bdtrppr6 Oct 2017 #76

Trump and the GOP want to take everything extvbroadcaster Oct 2017 #82

Trumpanzees knew what they were getting into HAB911 Oct 2017 #85