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Mitt Romney did this as well (although only to the tune of $100M). It was discussed in 2012 in various news outlets: https://www.investopedia.com/managing-weal

Mitt Romney did this as well (although only to the tune of $100M). It was discussed in 2012 in various news outlets: https://www.investopedia.com/managing-wealth/grow-ira-100-million-plus/ https://www.investopedia.com/managing-wealth/grow-ira-100-mi...

vmception 5y ago
Thats where I got the inspiration from for thinking about a lot of accounting differently. Financial engineering that people seem to neglect or be to scared of considering. With him sometimes Bain Capital made separate share classes, and I think they would give massive dividends periodically to the separate share class that only the 401k investors at Bain Capital would receive. I think its a really great strategy! Buffett should be doing that in Berkshire Hathaway for their employees instead of being sad about how much tax his secretary pays
- xkjkls 5y ago
  Or, the government should change the tax code to not make this possible and make the advantages of doing this moot. People need to be taxed, and we shouldn't have a system which requires a bunch of extra paperwork just for people to avoid it.
  - vmception 5y ago
    These simplistic ideas are exactly why it never will happen Roth versions of tax deferred accounts only exists because the government is an irresponsible spender and needed revenues. It made the contract with the people because its like a degenerate crack addict child scrounging for cash, in its case only to keep convincing international investors that it can slowly pay debt. Wow the contract worked and you just caught on 22 years later. What is your issue with people making good trades in a tax deferred and tax exempt accounts? That it needs more revenues again? The government will be fine, international investors are content with its revenue sources. These kinds of accounts are already subject to massive penalties and even UBTI regulations
    - xkjkls 5y ago
      My issue is that as a society, we want a percentage of the wealth that is created to be democratically controlled. We can debate which percentage and how that should be acquired, but the end social contract is that part of all wealth produced has some democratic component to it. For the last 5 is that decades, we've had groups of people gradually trying to evade more and more of that responsibility, and we aren't going to produce a functioning society that way.
jrochkind1 5y ago
And in the OP: > That January, The Wall Street Journal reported that Mitt Romney, the former private equity executive running for the GOP nomination, had listed on a financial disclosure form that he had amassed an IRA worth between $20 million and $102 million. The story ran on the front page and launched waves of coverage in other publications. Romney had a traditional IRA, not a Roth. But how, people wondered, could the account have grown so large, given that the government imposed strict limits on how much money could be put into one of the tax-deferred accounts? > Citing former company insiders and documents, the Journal reported that during Romney’s time as CEO at investment giant Bain Capital, executives there had effectively bypassed the contribution limits by putting extremely low-valued shares from private equity deals into their IRAs, then watching them balloon.

vmception 5y ago

Thats where I got the inspiration from for thinking about a lot of accounting differently. Financial engineering that people seem to neglect or be to scared of considering. With him sometimes Bain Capital made separate share classes, and I think they would give massive dividends periodically to the separate share class that only the 401k investors at Bain Capital would receive. I think its a really great strategy! Buffett should be doing that in Berkshire Hathaway for their employees instead of being sad about how much tax his secretary pays

xkjkls 5y ago
Or, the government should change the tax code to not make this possible and make the advantages of doing this moot. People need to be taxed, and we shouldn't have a system which requires a bunch of extra paperwork just for people to avoid it.
- vmception 5y ago
  These simplistic ideas are exactly why it never will happen Roth versions of tax deferred accounts only exists because the government is an irresponsible spender and needed revenues. It made the contract with the people because its like a degenerate crack addict child scrounging for cash, in its case only to keep convincing international investors that it can slowly pay debt. Wow the contract worked and you just caught on 22 years later. What is your issue with people making good trades in a tax deferred and tax exempt accounts? That it needs more revenues again? The government will be fine, international investors are content with its revenue sources. These kinds of accounts are already subject to massive penalties and even UBTI regulations
  - xkjkls 5y ago
    My issue is that as a society, we want a percentage of the wealth that is created to be democratically controlled. We can debate which percentage and how that should be acquired, but the end social contract is that part of all wealth produced has some democratic component to it. For the last 5 is that decades, we've had groups of people gradually trying to evade more and more of that responsibility, and we aren't going to produce a functioning society that way.

jrochkind1 5y ago

And in the OP: > That January, The Wall Street Journal reported that Mitt Romney, the former private equity executive running for the GOP nomination, had listed on a financial disclosure form that he had amassed an IRA worth between $20 million and $102 million. The story ran on the front page and launched waves of coverage in other publications. Romney had a traditional IRA, not a Roth. But how, people wondered, could the account have grown so large, given that the government imposed strict limits on how much money could be put into one of the tax-deferred accounts? > Citing former company insiders and documents, the Journal reported that during Romney’s time as CEO at investment giant Bain Capital, executives there had effectively bypassed the contribution limits by putting extremely low-valued shares from private equity deals into their IRAs, then watching them balloon.