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No its not, it's to encourage certain behaviors. In this case saving for retirement by using already taxed income instead of paying those taxes when you retire.
by TracePearson 5y ago
No its not, it's to encourage certain behaviors. In this case saving for retirement by using already taxed income instead of paying those taxes when you retire. You can read the article I linked to below to see how it was abused in this instance.
- vmception 5y agoPeriodically Congress was literally desperate for cash and encouraged people to pay taxes up front in exchange for not paying ever again I just don’t see how another perspective can be reached with the same information
- toast0 5y agoThis sort of fits into the encouraged behaviors though: Put aside some money for the future. Invest the money into company stocks, generally. (Hopefully) having made good investments, have more money in retirement. Retire and have some tax free money. Most investments don't apprechiate quite so much, of course, but there were no rules on investment returns, only about contributions (and restrictions on self-dealing which may very well apply)
- refurb 5y agoBy “abused” you mean “followed all regulations but ended up benefiting in ways I don’t like”?