Reuters article talks additional COVID PSP...
02-09-2021 | 04:37 PM
#31
Gets Weekends Off
Joined: Nov 2020
Posts: 2,235
Likes: 81
Something to think about; from Schwab's website:
If restrictions do come into play at some point, they could require backdoor Roth converters to pay a penalty or they might include a grandfather clause. In the meantime, it’s an option to consider."
The backdoor Roth may not last forever
"Although this strategy has existed since 2010, the IRS has not officially commented or provided formal guidance on whether it violates the step-transaction rule. (When applied, this rule treats what are several different steps as if they were a single transaction for tax purposes.) Experts have mixed opinions on the likelihood of this happening, but the lack of a definitive ruling means there is some risk involved. If the IRS decides that the loophole is a violation, you could owe a 6% excise tax for overfunding your Roth.If restrictions do come into play at some point, they could require backdoor Roth converters to pay a penalty or they might include a grandfather clause. In the meantime, it’s an option to consider."
02-09-2021 | 06:40 PM
#32
Line Holder
Joined: May 2012
Posts: 317
Likes: 1
From: CAP A320
I think the LOA proved which way the company wanted to go! The LOA has been a success, no doubt. Cares 3 will cement it. Now if we can get this administration to straighten out the vaccine rollout buffoonery!!!
02-09-2021 | 09:25 PM
#33
Gets Weekends Off
Joined: Mar 2018
Posts: 3,637
Likes: 212
Something to think about; from Schwab's website:
If restrictions do come into play at some point, they could require backdoor Roth converters to pay a penalty or they might include a grandfather clause. In the meantime, it’s an option to consider."
The backdoor Roth may not last forever
"Although this strategy has existed since 2010, the IRS has not officially commented or provided formal guidance on whether it violates the step-transaction rule. (When applied, this rule treats what are several different steps as if they were a single transaction for tax purposes.) Experts have mixed opinions on the likelihood of this happening, but the lack of a definitive ruling means there is some risk involved. If the IRS decides that the loophole is a violation, you could owe a 6% excise tax for overfunding your Roth.If restrictions do come into play at some point, they could require backdoor Roth converters to pay a penalty or they might include a grandfather clause. In the meantime, it’s an option to consider."
02-10-2021 | 06:58 PM
#34
Line Holder
Joined: Sep 2010
Posts: 1,725
Likes: 0
From: UAL retired
Not to mention when a free spending government runs into a fiscal problem, an "asset tax" will become their goto solution. It has in every other socialist country. First it will be on those with assets over $1million, and then it will come for all. The ROTH's, the 401K's, the property owners. Its really the only way to get to "equity" in our society.
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
02-10-2021 | 07:25 PM
#35
Gets Weekends Off
Joined: Mar 2018
Posts: 3,637
Likes: 212
My brother-in-law wrote a book on the topic. I found it informative.
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
02-10-2021 | 07:37 PM
#36
Gets Weekends Off
Joined: Dec 2012
Posts: 181
Likes: 0
My brother-in-law wrote a book on the topic. I found it informative.
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
We could argue about returning to the gold standard in which case a balanced budget would be necessary. However, we haven't lived under a gold standard since 1934.
02-10-2021 | 08:10 PM
#37
Line Holder
Joined: Oct 2015
Posts: 832
Likes: 69
Sorry. Sometimes language just rubs me the wrong way.
Sent from my iPhone using Tapatalk
02-11-2021 | 05:25 AM
#38
Line Holder
Joined: May 2014
Posts: 516
Likes: 3
From: 787 right
My brother-in-law wrote a book on the topic. I found it informative.
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
02-11-2021 | 05:55 AM
#39
Gets Weekends Off
Joined: Apr 2008
Posts: 5,738
Likes: 5
From: Sleeping in the black swan’s nest.
My brother-in-law wrote a book on the topic. I found it informative.
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
https://www.amazon.com/Citizens-2-So.../dp/098283280X
Consider this:
1) A man digs ditches 40 hours a week and earns X and pays tax on every hour of income, and if his per hour earnings increase he pays more tax?
2) A rich trust fund kid hangs a Picasso on a wall and the Picasso appreciates by $1 mil. That person pays no tax.
Society requires taxation. Does taxation of labor make more sense than taxation of wealth?
