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0 pointsboogoob4y ago0 comments

Given the relatively low cap on IRA contributions, it's not directly an issue of income, but rather your access to high-return investments like early-stage stock options.

Of course, someone with lots of investments will have the luxury of just making the highest-payoff ones with their IRA funds.

Independently, in the rest of the bill [1] there are lots of reasonable things like a $10 million IRA cutoff limit.

1) https://www.advantaira.com/wp-content/uploads/2021/09/WM-Tax...

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TuringNYC4y ago· 1 in thread

401ks can be rolled into IRAs, which people do to avoid poorly-chosen high-fee ETFs often found in 401k plans. For example, my employer's plan had 0.5% annual fee index funds when the same could be found for 0.05%.

401k limits are ~20k/yr -- about 10% of your pre-tax if you are maxing out on a 200k SWE TC (or much less given an employer match). Easily, your 401k (and rolled over IRA) can reach 200k (20k x 10) in a decade with no growth, and much more with growth.

At that point, this bill is relevant -- do you really want all your holdings in public stock that gyrate wildly in value every 7yrs?

chrisjc4y ago

401k limits are about $58k per year... You can only personally contribute up to about $20k per year. There are ways to take advantage of the difference such as employer matching and after-tax traditional 401ks (and instantly convert to Roth money).

This is also a way of contributing to a Roth (IRA?) if you don't qualify for a regular Roth IRA (make too much money) or want to contribute more than the $6k limit per year.

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