Reply to Should 401ks be phased out?

Forum Index » Money and Finances

Reply to "Should 401ks be phased out? "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Seems a growing movement. So many people don’t have one and the people who do a huge tax giveaway to rich.

Look at all the New Yorkers retired to Florida who avoided SALT taxes for 40 years on 401k contributions now in Florida.

If we could tax those trillions would solve a lot of problems [/quote]

401K distributions tend to be lumpy. Assume you live in 4 states before you retired and in your first year of retire you take a $50K distribution funded by stock sales in your 401K.

All 4 states + Feds get a piece of that $50K distribution? How does that even work? How do you even pay the taxes to previous states? How would the previous states even know if you owed them taxes? 401K administrators only issue 1099-Rs to your current home state on record. Further, with 401K rollovers the current administrator will not know where you lived when you made the previous contributions.

This seems so dumb. Just a jobs program for accountants and lawyers. Congrats - you've made the tax code 10x more complicated.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics