President Trump: The NEW one and only politics thread

I assume at that point you would set up a Roth IRA, which would be tax-free.

 

Jesus fucking christ, look at these rules.
http://www.rothira.com/what-is-a-roth-ira
The average american adult hasn't figured out that a 19% credit card is bad. But they are going to figure this out.

Are You Eligible?
First things first. Roth IRAs have income eligibility limits, so if you make too much money, you can’t contribute to a Roth IRA. But with a median household income of about $50,000, most Americans qualify for Roth IRA contributions. (If your income is too high, you can convert some or all of the assets in your traditional IRA to a Roth IRA, but you’ll have to pay taxes on the entire amount you convert. For details, see more on Roth IRA conversions).

For the 2017 tax year, here’s what you can put in a Roth IRA, depending on your income, age and tax-filing status.

To contribute the maximum
You can contribute the maximum $5,500 to a Roth IRA ($6,500 if you are age 50 or older by the end of the year) if you are single or the single head of a household and your modified adjusted gross income (MAGI) is less than $118,000.

If you are married filing jointly, you can contribute the maximum amount to a Roth IRA if your MAGI is less than $186,000.

To make a partial contribution
At higher income levels, you can contribute less, based on a formula devised by the IRS. The relevant income figures:

You are single and your MAGI is between $118,000 and $133,000.

You are married filing jointly and your MAGI is between $183,000 and $193,000.

You can’t contribute to a Roth IRA at all if your income is above those levels.

Special rules apply to married couples who live together at any time during the year, but file separate tax returns. Neither can contribute to a Roth IRA if their income exceeds $10,000.1

2017 Roth IRA Income and Contribution Limits
Filing Status MAGI Contribution Limit
Married filing jointly Less than $186,000 $5,500**
$186,000 to $195,999 Begin to phase out
$196,000 or more Ineligible for a direct Roth IRA (learn more about a “Backdoor Roth IRA”)
Married filing separately
Less than $10,000 Begin to phase out
$10,000 or more Ineligible for a direct Roth IRA (learn more about a “Backdoor Roth IRA”)
Single Less than $118,000 $5,500**
$118,00 to $132,199 Begin to phase out
$133,000 or more Ineligible for a direct Roth IRA (learn more about a “Backdoor Roth IRA”)
One caveat: If you earn less than the maximum contribution limit, you can contribute only as much as you earned. If, for example, you earned just $3,000, you could contribute only $3,000 to a Roth IRA for the year. Non-working spouses can contribute the maximum amount to a Roth IRA as long as the working spouse earns enough to cover the contributions to both accounts and the household income doesn’t exceed the IRS income-eligibility limits. Learn more about Spousal IRAs.

 

Capping it at such a low number is a slap at folks who, rightly or wrongly, consider themselves middle class.

 

@poindexter You are conflating "the average American" with the person who is going to look at several alternative investment vehicles for the money he has left over after his workplace savings contribution. And you're forgetting my main point here: Middle-class families are not contributing to the limits of the 401k plan. They aren't even getting halfway to the limits.

Using your 10 percent model, we are allowing these tax-deferred contributions up to $180,000 of income (below age 50) and $240,000 (above age 50). That is not a middle-class tax break.

 

It really is. This is fucking asinine.
I am not saying it from my standpoint. I will be fine.

But the ONE, easy, retirement saver is your company's 401k.

If you contribute one dollar more than the cap amount, you will be paying taxes on it twice.

Why is this being proposed?

 

Yeah, because the FBI trusted Steele, and believed him to be credible. They didn't know it was unverified, funded by partisan opponents, and outsourced by Steele to unknown Russian nationals:

After that, Fusion GPS hired dossier author Christopher Steele, a former British intelligence officer with ties to the FBI and the U.S. intelligence community, according to those people, who spoke on the condition of anonymity.
...
Current and former U.S. intelligence officials said that Steele was respected by the FBI and the State Department for earlier work he performed on a global corruption probe.

 

They aren't talking about taking it from $180k to $150k. (18k to 15k).

They are taking it to $2.4k.
Republicans Consider Sharp Cut in 401(k) Contribution Limits

 

That would be the nail in the coffin for personal savings, after 10 years of near-negative interest rates. Thanks everyone!

 

This is being proposed because while the Senate-passed budget only allows for a $1.5 trillion increase in the deficit over 10 years, the corporate tax cuts, elimination of the estate tax and cuts to the high end income tax rate proposed in the GOP draft (still kind of a wish list, not a bill) would increase the deficit by $2.4 trillion over the same period. That means it couldn't be brought to the floor under reconciliation. So somewhere, $900 billion in additional revenue or spending cuts must be found, or the whole project goes down the drain.

 

That's my wife. We lived in Houston through the 80's, and lost jobs in more ways than you would think possible, from ordinary layoffs, to companies being bought out with resulting staff cuts, to companies simply going belly up to the time her employer's shop burned down. That wound up giving her horrors about job instability. When we moved back to Birmingham she took a job at UAB. It paid less than the private sector, but it wasn't going to go out of business (UAB is the largest employer in Alabama and has a $7.1 billion dollar impact on the economy), it had solid benefits and a defined pension. She's retiring at the end of the month after 29 years, god bless her.

Throw in a paid for house and we're far better off than a lot of folks our age.

As to 401K's, put in as much as you can and for the love of god if you do nothing else put in as much as your employer will match. That's an automatic 100% return.