4 ms·
The rules around retirement accounts are so ridiculous. There should be no limits on contributions, for example. And they should all be treated as SIMPLE IRA's
by apple4ever 3y ago
The rules around retirement accounts are so ridiculous. There should be no limits on contributions, for example. And they should all be treated as SIMPLE IRA's and let anybody contribute any place they like.
- rnk 3y agoThere should be higher limits, but one reason there are limits is so that really wealthy people can't shield all their money from future taxes; we need to let people of more modest means get more gain though. Maybe you could have taxes on the pretax 401k but higher contribution limits (where withdrawals will owe taxes on the gain when you withdraw it), but some limits on roth 401ks, which are post-tax dollars with no tax at withdrawal. That's kind of a mess of a description. Try 2 - double 401k limits, but still keep some limits so we get needed taxes at withdrawal.