Democrats Are Once Again Sabotaging Desperately Needed Social Security Reform

[Toddsterpatriot]

Of course, to claim otherwise is stupid. Change your behavior and lower your tax burden. That would be my advice.

You do realize that Roth IRA contributions are taxable. Right?

And non-Roth IRAs are deductible, yes.
I didn't want to confuse the issue.

If you spend every penny, your tax burden is higher than if you save.
WW thinks that's horrible, I think it's partially, as you know, due to behavior.

 

[Hector12]

When did I ever talk about retirees?! You’re acting like a Democrat - arguing against points I never made.

That is called the Straw Man Fallacy: distorting an argument to make it easier to refute. Some Democrats and some Republicans resort to that fallacy, but most do not.

 

[Lesh]

Just give me my fucking money back, stop taking from my check and let me handle my retirement. I dont plan on not having access to my money until im fucking 80. This is such stupid BS.
We can fund our huge war machine and pay for other countries to kill themselves, but i cant retire at a decent age?
FUCK YOU

All well and good for you.

What happens to the millions who are currently collecting SS?

Fuck em?

 

[TNHarley]

All well and good for you.

What happens to the millions who are currently collecting SS?

Fuck em?

No, its not good for me. I dont want to pay into something my entire life, and then not get to enjoy the fruits of it, when im fucking 75, and die 4 days later.
Its fucking bullshit. All because our government is inefficient.

 

[WorldWatcher]

I’m thinking if stocks go down as far as Democrats whine, I’m going to convert some of my traditional into ROTH. I’ll pay taxes on the amount I convert, but everything I recover will be tax-free,

Maximum contribution limits to a Roth IRA are $7000 <50 and $8000 >50.

You can't lump sum deposit so not really much impact in the short term, long term it's a viable course of action.

My wife and I are heavy into 401K's. For our kids in their 30's there is a benefit.

WW

Retirement topics - IRA contribution limits | Internal Revenue Service

Information about IRA contribution limits. Learn about tax deductions, IRAs and work retirement plans, spousal IRAs and more.

www.irs.gov

 

[1srelluc]

That is called the Straw Man Fallacy: distorting an argument to make it easier to refute. Some Democrats and some Republicans resort to that fallacy, but most do not.

You are both full of shit! Jelly too by the sound of it.

You people act like .gov insurance is free, it isn't, and that goes for current employees and retirees.

The total cost is determined by the menu you choose from. If you want dental and vision, then it's gonna cost more.

The "break" that retirees get is being able to keep the same level of coverage they had while being employed, but the cost is still the same as an employed .gov worker.

The .gov insurance pays out after Medicare to those qualified, so in that regard retirees actually pay more for the same level of coverage.

 

[Hector12]

You are both full of shit! Jelly too by the sound of it.

You people act like .gov insurance is free, it isn't, and that goes for current employees and retirees.

The total cost is determined by the menu you choose from. If you want dental and vision, then it's gonna cost more.

The "break" that retirees get is being able to keep the same level of coverage they had while being employed, but the cost is still the same as an employed .gov worker.

The .gov insurance pays out after Medicare to those qualified, so in that regard retirees actually pay more for the same level of coverage.

What is that about? I was responding to Lissa558's comment that it is typical of Democrats to criticize her for statements she did not make. I pointed out that Republicans do this too.

 

[Lisa558]

Maximum contribution limits to a Roth IRA are $7000 <50 and $8000 >50.

You can't lump sum deposit so not really much impact in the short term, long term it's a viable course of action.

My wife and I are heavy into 401K's. For our kids in their 30's there is a benefit.

WW

Retirement topics - IRA contribution limits | Internal Revenue Service

Information about IRA contribution limits. Learn about tax deductions, IRAs and work retirement plans, spousal IRAs and more.

www.irs.gov

I can lump sum deposit as much as I want when I transfer from my traditional to my existing ROTH.

 

[Lisa558]

You are both full of shit! Jelly too by the sound of it.

You people act like .gov insurance is free, it isn't, and that goes for current employees and retirees.

The total cost is determined by the menu you choose from. If you want dental and vision, then it's gonna cost more.

The "break" that retirees get is being able to keep the same level of coverage they had while being employed, but the cost is still the same as an employed .gov worker.

The .gov insurance pays out after Medicare to those qualified, so in that regard retirees actually pay more for the same level of coverage.

More Straw Man argument! I was not talking about retirees. I was talking about current government workers.

They should have all had to go on the inferior Obamacare, rather than force regular people onto it and then require them to provide the better insurance for the govt “workers.”

By the way, shopping is great since the govt workers had to go back to work. I actually feel retired! Stores are empty and mid-day traffic is a pleasure.

 

[1srelluc]

More Straw Man argument! I was not talking about retirees. I was talking about current government workers.

They should have all had to go on the inferior Obamacare, rather than force regular people onto it and then require them to provide the better insurance for the govt “workers.”

By the way, shopping is great since the govt workers had to go back to work. I actually feel retired! Stores are empty and mid-day traffic is a pleasure.

Jealous and selfish.....I always figured that's how you roll.

 

[WorldWatcher]

I can lump sum deposit as much as I want when I transfer from my traditional to my existing ROTH.

OK, got'cha. It was the "lump sum" that tripped me up.

It can make sense, a lot depends on how much and future retirement plans. There may not be a tax penalty for the move, but if you are talking significant amounts it may change your tax bracket resulting in not only more taxes, but taxes at a higher rate.

WW

 

[Lisa558]

OK, got'cha. It was the "lump sum" that tripped me up.

It can make sense, a lot depends on how much and future retirement plans. There may not be a tax penalty for the move, but if you are talking significant amounts it may change your tax bracket resulting in not only more taxes, but taxes at a higher rate.

WW

Thanks…..yes, I’m being mindful of that. I’m keeping in mind that my Medicare premiums will go up, too, if I cross into the next premium bracket.

It depends largely on just how low a drop we end up with. If it’s 20%, I’d bite the bullet and not worry about brackets.

 

[WorldWatcher]

Thanks…..yes, I’m being mindful of that. I’m keeping in mind that my Medicare premiums will go up, too, if I cross into the next premium bracket.

It depends largely on just how low a drop we end up with. If it’s 20%, I’d bite the bullet and not worry about brackets.

The whole idea for (I'm assuming our generation) was "Save for retirement now, because you will be in a lower tax bracket in retirement - here's your 401k".

For my wife and I that idea went to hell (in a good way). Out Gross Income goes down by about 23%. However our disposable income is going to go UP by about 40%. (We've been making large 401K depositions for a number of years, once we both retire those deposits stop meaning more spendable cash for what we take in.)

So I've been toying around with what I call "Bracket Withdrawals" from the 401K. If you are in the middle of a tax bracket, you can withdraw more without change brackets to a higher rate. Now if you near the next bracket you may not do yourself any favors.

Since there isn't really an advantage to keeping the money in a 401K, I'd like to move it out. If I pass before my wife she gets everything anyway. If we both pass, then it get's trickey for the kids as a lump sum distribution will be a killer on taxes for them. They can reclassify it as an "Inherited IRA" but there is still a 10 year limit to empty it.

If we can move most out of the IRA, to similar non-IRA investments, we pay taxes on the dividends, but the account balance can transfer as part of the estate with no taxes to the kids.

Very complicated to me as I'm not a money guy. So I wouldn't take any steps without talking to a CFP/Tax person.

WW

 

[Toddsterpatriot]

Maximum contribution limits to a Roth IRA are $7000 <50 and $8000 >50.

You can't lump sum deposit so not really much impact in the short term, long term it's a viable course of action.

My wife and I are heavy into 401K's. For our kids in their 30's there is a benefit.

WW

Retirement topics - IRA contribution limits | Internal Revenue Service

Information about IRA contribution limits. Learn about tax deductions, IRAs and work retirement plans, spousal IRAs and more.

www.irs.gov

Maximum contribution limits to a Roth IRA are $7000 <50 and $8000 >50.

Conversion is different than contribution.

 

[Lisa558]

The whole idea for (I'm assuming our generation) was "Save for retirement now, because you will be in a lower tax bracket in retirement - here's your 401k".

For my wife and I that idea went to hell (in a good way). Out Gross Income goes down by about 23%. However our disposable income is going to go UP by about 40%. (We've been making large 401K depositions for a number of years, once we both retire those deposits stop meaning more spendable cash for what we take in.)

So I've been toying around with what I call "Bracket Withdrawals" from the 401K. If you are in the middle of a tax bracket, you can withdraw more without change brackets to a higher rate. Now if you near the next bracket you may not do yourself any favors.

Since there isn't really an advantage to keeping the money in a 401K, I'd like to move it out. If I pass before my wife she gets everything anyway. If we both pass, then it get's trickey for the kids as a lump sum distribution will be a killer on taxes for them. They can reclassify it as an "Inherited IRA" but there is still a 10 year limit to empty it.

If we can move most out of the IRA, to similar non-IRA investments, we pay taxes on the dividends, but the account balance can transfer as part of the estate with no taxes to the kids.

Very complicated to me as I'm not a money guy. So I wouldn't take any steps without talking to a CFP/Tax person.

WW

Yes indeed…..lots of complexities.

For people whose IRA balances are so large that the RMD is much more than needed for expenses - and thus you’re forced to take out money you don’t need and pay taxes on it - an option is to buy a deferred annuity, sometimes called “longevity insurance.”

You don’t have to pay any taxes on the amount you use to buy the annuity, and because it sits there for a while before it pays out, the monthly payment is fairly high and starts just around the time you could need it for long-term care.

They have options that allow your beneficiaries to inherit some of it, too.

I also am not a money gal, but just throwing it out there in case it’s something you want to talk to your advisor about.

 

[WorldWatcher]

Maximum contribution limits to a Roth IRA are $7000 <50 and $8000 >50.

Conversion is different than contribution.

Ya, I caught that later.

WW

 

[John Edgar Slow Horses]

Another goofy thread by mike.

Simply lift the income tax cap on SS, and conduct a rigorous audit commissioned for a major private accounting firm.