Roth IRAs Have Transformed into Big Tax Shelters for the Wealthy(news.bloombergtax.com)
news.bloombergtax.com
Roth IRAs Have Transformed into Big Tax Shelters for the Wealthy
https://news.bloombergtax.com/tax-insights-and-commentary/roth-iras-have-transformed-into-big-tax-shelters-for-the-wealthy
2 comments
All the articles against the backdoor Roth reference Peter Thiel’s Roth. That is a very, very rare situation and he purchased PayPal stock for nothing using his Roth because it was a startup. PayPal could have taken a different turn and failed.
Yes there’s a tax benefit to backdoor roth but the max contribution is $6000 a year and most people are going to get index fund rate of returns and not Peter Thiel’s home run.
And Thiel did not get around the max contribution rate.
Yes there’s a tax benefit to backdoor roth but the max contribution is $6000 a year and most people are going to get index fund rate of returns and not Peter Thiel’s home run.
And Thiel did not get around the max contribution rate.
All of these cutouts and exemptions (Roth, HSA, 401k, green rebates, etc.) hide the true nature of the tax system: preventing talented middle class people from building self-sustaining wealth while handing out scads of welfare to the already wealthy in the form of incentives and credits.
If they're going after the ROTH with articles like this, it's probably because middle class people managed to actually build some wealth with it...