Author Topic: Financial Prepping  (Read 535 times)

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Offline JohnnyDollar

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Offline TXAZ

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Re: Financial Prepping
« Reply #21 on: October 18, 2017, 09:19:12 PM »
The IRS says otherwise.
https://www.irs.gov/newsroom/irs-announces-2017-pension-plan-limitations-401k-contribution-limit-remains-unchanged-at-18000-for-2017

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
Technically by the 'literal' interpretation you're correct.  Practically it's not.  There is a backdoor that yields the same result, "Carried Interest" and buying shares in a privately held company for pennies on the dollar that are realized in a year for a dollar per share.

Maybe that's why Mitt Romney and many others have IRA's that are worth over $100M each by setting up and investing like that.

Offline JohnnyDollar

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Re: Financial Prepping
« Reply #22 on: October 18, 2017, 09:24:13 PM »
The IRS says otherwise.
https://www.irs.gov/newsroom/irs-announces-2017-pension-plan-limitations-401k-contribution-limit-remains-unchanged-at-18000-for-2017

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
Technically by the 'literal' interpretation you're correct.  Practically it's not.  There is a backdoor that yields the same result, "Carried Interest" and buying shares in a privately held company for pennies on the dollar that are realized in a year for a dollar per share.

Maybe that's why Mitt Romney and many others have IRA's that are worth over $100M each by setting up and investing like that.
Well, rich people usually have tax lawyers to help them get around things.....   
at least till the IRS takes an interest in them.
In Texas, "He needed killin' " is a defense to prosecution.

Offline TXAZ

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Re: Financial Prepping
« Reply #23 on: October 18, 2017, 09:45:08 PM »
The IRS says otherwise.
https://www.irs.gov/newsroom/irs-announces-2017-pension-plan-limitations-401k-contribution-limit-remains-unchanged-at-18000-for-2017

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
Technically by the 'literal' interpretation you're correct.  Practically it's not.  There is a backdoor that yields the same result, "Carried Interest" and buying shares in a privately held company for pennies on the dollar that are realized in a year for a dollar per share.

Maybe that's why Mitt Romney and many others have IRA's that are worth over $100M each by setting up and investing like that.
Well, rich people usually have tax lawyers to help them get around things.....   
at least till the IRS takes an interest in them.

We set up a company for my wife, not with stock (1 of 3 options) but could have been pretty easy to set up a company to do just that with stock valued at pennies on the dollar.  Make a large deposit as equity, take out shares at a low value, put the shares in an IRA at nominal value, bada bing. 
Maybe in my next life..

Offline Tango

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Re: Financial Prepping
« Reply #24 on: October 19, 2017, 07:06:23 AM »
.
I still disagree about a govt mandated annual cap on the amount that one can contribute to one's 401k - other than this "catch up" thing (which wasn't available when I was contributing)

you may be thinking about this :

"The back way .. is to contribute every year to a traditional tax-deferred IRA and then convert that IRA to a Roth, paying taxes on the converted amount that has not yet been taxed. ... Here is where the reverse rollover helps: You can move all of your old IRA money into your 401(k)"

the FACT remains, however, that there IS a govt cap on the $ amount that one can contribute to one's 401k
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