Quote:
Originally Posted by ChiliConCarnage
I knew it was a possibility. I can't imagine they'd really make the limit 2400. If they made it 10k and you had to contribute the last 8.5k to a ROTH 401k that wouldn't affect a lot of ppl and would bring in some extra money now.
I know the Tea Party has been against it as a financial trick and not really fixing the spending/debt issue. It's just pulling future revenue forward
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I think it simply redistributes where my money goes and does little for the middle class as far as savings goes.
So I don't get a tax break if they limit my 401k that much. Fine, my federal taxes end up lower with this plan and my take home pay is more. However, I have to shuttle more of my take home pay into after tax investment accounts. However, the current max for a Roth IRA is $5,500 and if they cap the 401k at $2,400, my current yearly investment amount will be tremendously limited compared to where it is now ($7,900 vs $24,000). So I end up putting even more after tax money into a brokerage account which is taxed even further than either a ROTH or 401k.
This is a **** on the middle class.