New 401k contribution caps?

Discussion in 'Politics' started by Northern Flash, Oct 23, 2017.

  1. Magoo

    Magoo You don't have to be Einstein to figure it out

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    Send it to me I'll hold it for you for no charge
     
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  2. Magoo

    Magoo You don't have to be Einstein to figure it out

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    I'm sure most people here have well over $600,000 in their 401K's.
    $1.2 is more like it. :438:


    Yeah the poo rich need tax relief.
    Must be hard to be rich, those poor bassturds
     
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  3. ABFer

    ABFer Super Moderator Staff Member

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    Don't want to give a straight answer to that question, eh? That tells me that you agree with me. Taxes are simply deferred but paid in full in the end.
     
  4. jimmy g

    jimmy g Kook

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    "Workers of the World, Unite!"
     
  5. canaryinthemine

    canaryinthemine Retirement....The Job I Was Born To Have!

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    I would suggest that the business community ....the people that use labor...... are behind the cap on 401(k)'s. They have been trying to destroy traditional pensions for decades,.....and with so many industries experiencing skilled labor shortages.....(..like trucking...).....it "benefits" an industry to get their employees to.....defer....retiring until a much later time in the future,....mainly for economic reasons...(..can't afford it!..)...

    As I've said before, the driving force behind much of industry's lobbying is the postulation that if you double the available labor pool, you can halve wages. Twice as much work,....from an increasingly desperate labor force,....for the same amount of money.....or less if you can increase the desperation level.

    Destruction of most,...if not all,....social safety nets, like unemployment insurance, Social Security, Medicare and Medicaid, defined-benefit, and now......defined-contribution pension plans,....Obamacare,....(..the reason I was able to retire........Only half as much for health insurance as COBRA insurance,....)... only benefit big business, as they force many people to compete for jobs,....at an increasingly lower pay rate,......when many of those people would've retired......or gone on to higher education for a better wage , once their factory moved to China....(.Let's not forget the de-funding of the Education Department.)..

    If anyone's looked at the new tax "relief" bill,....there are provisions to start Medicare and Medicaid cuts in it. Why?

    Wall Street's booming. Should be record profits for businesses, which should translate into record amounts of funding for companies. And record profits for investors, big and small....

    Once again,....Why do we need Tax..."relief"...now?
     
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  6. Keepingon

    Keepingon Well-Known Member

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    Rep. Kevin Brady chairman of Ways and Means committee on fox moments ago said he spoke with President Trump twice this week and is now trying to increase the amount you can deduct into a 401k up to 20k a year.
     
    Last edited: Oct 27, 2017
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  7. Rastus

    Rastus ......Deplorable.....

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    Anybody else notice the most advice is coming from someone who brags about paying no taxes.
     
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  8. Magoo

    Magoo You don't have to be Einstein to figure it out

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    In the same vein is people leaving college with tons of debt. This makes them docile employee's who will do as they are told and keep quiet.

    If working class people did not go along with their plans they could not do any of them.
    But they sweet talk us into it with a promise of some candy.
    We are soooo gulible
     
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  9. Rastus

    Rastus ......Deplorable.....

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    And how would you possibly know any of this?
     
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  10. CCXdriver

    CCXdriver Well-Known Member

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    Trump calls that the old "heat the water slowly, and the frog never knows he's being cooked" trick.

    Threaten you with $2400.00, you scream and holler.

    Next thing you know you're happy to take 10,000.00.
     
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  11. SuperCourse

    SuperCourse Well-Known Member

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    Rep. Kevin Brady says lawmakers considering raising 401(k) contribution limit
    • Tax writers are considering raising the 401(k) contribution limit to $20,000 or more.
    • Earlier this week, lawmakers had been reportedly considering lowering that limit to $2,400.
    • Rep. Kevin Brady said his goal is to help people save more and start saving earlier.
     
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  12. Northern Flash

    Northern Flash Piss on our Flag, get a boycott against you.

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    You only have to pay income taxes as you pull the money out of your 401k, and most people only pull it out in small increments, thus......a lower annual income and lower tax bracket.
     
  13. Northern Flash

    Northern Flash Piss on our Flag, get a boycott against you.

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    Would you please quit with the idiotic comments about them "taking away our Social Security". Anyone with a clue knows that it isn't getting taken away anytime soon.
    They would rather run up the debt another couple trillion dollars than cut anything affiliated with SS.
     
  14. Northern Flash

    Northern Flash Piss on our Flag, get a boycott against you.

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    No. The reality is that most blue collar workers can't afford to put 24K into their 401k and still have money left over to eat with. But 10K per year is doable for some people. At least it's realistic.
    Personally, I like the 24K limit though, even though I don't put that much in.
    I doubt that I'll ever get mine up to the 24k limit since I'm usually waiting at the airport when my ship comes in.
    :biglaugh:
     
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  15. Northern Flash

    Northern Flash Piss on our Flag, get a boycott against you.

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    If they were to lower the limit to the "rumored" 2,400.00 per year, they are talking out of both sides of their mouths. They tell us how we need to focus on saving money for our retirements, so cutting the amount down to 2,400.00 would be the polar opposite of their talking points.
    I don't see them lowering it to the 2,400.00 after hearing what Trump said most recently.
     
  16. Northern Flash

    Northern Flash Piss on our Flag, get a boycott against you.

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    I think that you are already getting a cut out of my check and that's plenty. Your real name is F.I.C.A. right?
    :poke:
     
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  17. ABFer

    ABFer Super Moderator Staff Member

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  18. Northern Flash

    Northern Flash Piss on our Flag, get a boycott against you.

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    That's a hypothetical question that can't be answered ABFer. It's all about how big the withdrawals of your 401k are. Everyone pulls out their money at different increments. If you pulled it all out in a hurry after retiring, I'd guess that your income would be so high that your taxes coming out of it would be high also.

    I've always wanted my 401k to grow fast, (pre-taxed) then the higher amount gets deposited into my account. To each their own, but I don't want the govt. making that decision for me.

    The taxes that come out during your withdrawals will be based on any pension money (income) that you have coming in also.
     
  19. ABFer

    ABFer Super Moderator Staff Member

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    While I admit that it's above my pay grade I wouldn't call it that ^^^^^. One well schooled in the tax code could make a reasonable estimate, or at least lay out some scenarios as to how much would be paid based on different withdrawal rates and reportable income levels at the time of withdrawal of funds. And should we ever get converted to a flat tax code it would even become easy to determine. Regardless, the taxes paid when funds are withdrawn will be (or should be) paid on a larger amount of money resulting in a smaller, if not non-existent loss of tax dollars. What it does is brings forth to today, tax dollars from tomorrow if people put less money into their 401K's.
     
  20. Northern Flash

    Northern Flash Piss on our Flag, get a boycott against you.

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    I'll give you a "hypothetical" scenario then.
    If a person has say $400K in their 401k when they retire, then they only pull out $30K per year to live off, (and have everything paid off) They will only be paying taxes on that 30k. So they should get taxed the same amount as a working person that only made 30k for the year.
    If someone pulled $100k out that first year after retirement, they will be in a higher tax bracket, and lose more of it in taxes.
    Those with pension income coming in need to know their pension check amount for the year, and factor in NOT taking out too much of their 401k each year so that they don't lose as much in taxes, because the two together could put them into a higher tax bracket. A financial adviser would give you the same advice.

    You will be paying taxes on your total income for the year after retiring, just like you did while working. That's why you need to keep that income amount as low as you can afford to live off.

    This is why the Trump administration started this conversation to begin with. They want to make tax cuts for the middle class and they are looking for a way to make up the difference (loss) of income to the treasury. In my opinion, they need to look elsewhere.
    They can't tell us to save for our future, then take away one of our options to do so.
     
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