This is why the IRA

Discussion in 'Politics' started by onecut39, Aug 4, 2012.

  1. onecut39
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    onecut39 VIP Member

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    I have been wracking my brain to figure out the advantage to putting of putting tens of millions of bucks into an IRA. This may explain it.

    4. It's the IRAs

    Mitt Romney has an Individual Retirement Account, just like you probably do! But unlike you, Mitt has somewhere between $20 and $101 million in his account.

    We know that the maximum amount one can contribute to an IRA account is $17,000 per year (employers can match that with up to $30,000). So that would be a pretty impressive performance – what an investor!

    Or what a cheat. Michael Graetz, a professor of tax law at Columbia University and a former official in the senior Bush's Treasury Department, suggested that to get such a fat IRA, “we have to presume that Mr. Romney valued the assets he put in his retirement account at far less than he would have sold them for.”

    He continues:

    The I.R.A. also allows Mr. Romney to diversify his large holdings tax-free, avoiding the 15 percent tax on capital gains that would otherwise apply. His financial disclosure further reveals that his I.R.A. freed him from paying currently the 35 percent income tax on hundreds of thousands of dollars of interest income each year.

    And here are another 9 reasons for Mitt to hide his tax returns.

    10 Theories About What Mitt Romney's Really Hiding in Those Tax Returns | The Smirking Chimp
     
  2. OODA_Loop
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    I have an IRA.
     
  3. OODA_Loop
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    "Both traditional and Roth IRAs permit individuals to save for retirement while enjoying certain tax advantages. Traditional IRA contributions are tax-deductible up to certain income limits, investments grow tax-deferred within the account and distributions are taxed as ordinary income. The assumption is that your tax rate will be lower in retirement. Roth IRA contributions are made with after-tax dollars, but qualified distributions are tax-free."
     
  4. onecut39
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    onecut39 VIP Member

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    So do I, as does my wife. We don't have a hundred million bucks in either one.

    I'll say it again this has nothing to do with illegality. This is a character issue. The IRA accounts were set up so the people of average means could have tax free funds after retirement.

    If it comes out that Romney was gaming the system, and there is no way he wasn't, this is just going to look like a guy gaming the system that was meant for the middle class.

    This is the very ugly face of greed. Couple this up with his tax free offshore accounts and you have a man with unimaginable wealth trying to preserve the last penny at his country's expense.

    Legal maybe. No way is it pretty. It is not going away.
     
  5. OODA_Loop
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    If you exceed the annual cap which is less than 10k there is no tax benefit + You still pay tax when you draw at retirement

    I think your premise is skewed
     
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  6. NYcarbineer
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    NYcarbineer Diamond Member

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    You can make non-deductible contributions to an IRA and let them grow tax-deferred until you take them out, at which time you would pay the taxes on the growth but not the non-deductible contributions, since you would have already paid the tax on them.
     
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    Last edited: Aug 4, 2012
  7. asaratis
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    asaratis Uppity Senior Citizen Gold Supporting Member Supporting Member

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    Thank you for clearing that up. Most of your brain-dead liberal friends are too fucking stupid the understand that.
     
  8. NYcarbineer
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    NYcarbineer Diamond Member

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    Actually as far as I have seen here I'm the only one to point that out. Which means your braindead conservative friends didn't understand that either.
     
  9. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Finally!!

    Someone figured it out
     
  10. onecut39
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    onecut39 VIP Member

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    That is true with any account and as such would make IRAs undesirable for non deductible money because there is a substantial penalty if you withdraw it early.
     

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