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IRA contributions for most people are above-the-line 1040 deductions, i.e., they count as a direct adjustment to your income regardless of how the rest of your
by thaumaturgy 9y ago
IRA contributions for most people are above-the-line 1040 deductions, i.e., they count as a direct adjustment to your income regardless of how the rest of your taxes are structured (with exceptions for people who have employer IRA plans available or are self-employed or half a dozen other conditions, I am not a tax adviser, etc. etc.).
Okay, show me a non-arbitrary definition of "poor" and "middle class". Bonus points: show me the official definition that everyone agrees on. I'll wait.
Oh, and while you're doing that, let's also pause for a moment and reflect on whether you disagree that someone that can't save $10k per year is poor, or if you were just looking for an argument on the internet.
- taurath 9y agoYou’re the one creating your own definitions and making assertions, accusing someone else of just looking for an argument seems disingenuous.
- ryanwaggoner 9y agoIRA contributions are subject to FICA taxes, as are employee contributions to 401k, etc. FICA taxes withheld from your paycheck regardless of your contributions, and there’s no credit to give some of it back to you on the 1040 because you made an IRA contribution. As for definitions, here’s an official, non-arbitrary one for poverty that’s widely used. I’m sure you’ll just declare it arbitrary, which is fine, but my point is that you just came up with a random definition without anything to back it up or any reasoning as to why that’s the right threshold. Federal poverty guidelines aren’t perfect but they’re not a number out of a hat, which is what you’ve got. https://aspe.hhs.gov/poverty-guidelines https://aspe.hhs.gov/poverty-guidelines