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Depends on the spirit of the reduction and income levels. A Roth IRA was designed specifically for wage earners to have a tax-friendly investment vehicle to sav
by ericmay 5y ago
Depends on the spirit of the reduction and income levels. A Roth IRA was designed specifically for wage earners to have a tax-friendly investment vehicle to save for retirement. This benefits them and society. I don’t think you can say the same thing about the OP here.
- chii 5y ago> This benefits them and society. I don’t think you can say the same thing about the OP here. The OP is given a tax incentive to build businesses in depressed economic zones and low-income areas. Both roth ira and this special tax "loop hole" are incentives the gov't implemented to encourage a beneficial behaviour.
- refurb 5y agoThe 401k was a literal tax loophole - it was never intended to be a tax-deferred retirement vehicle. Some accountant just noticed it in the tax code and figured that most Americans could actually take advantage of it. https://www.northwesternmutual.com/life-and-money/your-401k-when-it-was-invented-and-why/ https://www.northwesternmutual.com/life-and-money/your-401k-... I assume you're sticking to your morals and don't use the 401k loophole?
- lukas099 5y agoThe spirit of the tax benefit, like all tax benefits, was to help some special interest avoid their taxes.