Dems want to close "backdoor" Roth IRA loophole

ExecutiveGator

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Dec 5, 2014
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After I max out my 401K each year, I max out both IRAs. I have to do the non-traditional traditional route as I seem to not be a fair sharer. But, before I purchase anything in my non-traditional traditional, it is converted to a ROTH. Thus, I don't pay taxes on any gains, just on my usual salaried job.

Is this not what we're arguing about, or am I missing something?
 

Gatormac2112

The Voice of Reason
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Sep 7, 2014
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Curious as to why you think you will make more money in retirement than you do now.

we are actually discussing Mr. "High income earner" at a max rate of 37%, which is in excess of $600,000. Its really impossible to pay more in income tax than the highest rate.

So if this doesn't apply to you, its apples and oranges.

I have no issues with a Roth. Its a great retirement vehicle. But if your marginal rate is 37%, it makes no sense to convert it to a Roth and pay the tax now. In fact, you lose money without even considering that you can manage better what income you pay tax on when you retire.
I’m in the 24% bracket and I’m not saying I’ll earn more in retirement, I’m saying I think they’ll tax more in my future retirement. Gotta pay for all the liberal policies somehow. Honestly for me it’s probably a wash either way so I’m not that worried about it.
 

Bushmaster

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I’m in the 24% bracket and I’m not saying I’ll earn more in retirement, I’m saying I think they’ll tax more in my future retirement. Gotta pay for all the liberal policies somehow. Honestly for me it’s probably a wash either way so I’m not that worried about it.

I don't have my cheat sheet in front of me, ut 24% a little on the high side of highER income, but not near 37%.

So, you have a lot less wiggle room as the next rate down is 22%.
 

Gatormac2112

The Voice of Reason
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Sep 7, 2014
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I don't have my cheat sheet in front of me, ut 24% a little on the high side of highER income, but not near 37%.

So, you have a lot less wiggle room as the next rate down is 22%.
I expect to be in the same or slightly lower bracket in retirement so I think it matters not which way I go about it
 

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