Reply to 401k savings limit to increase in 2023

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Most people cannot afford to do this[/quote]

The people who cannot afford to do this don’t really need to save this much. Median HHI is around $78K and everyone knows that 20% of income needs to be set aside for retirement savings. That’s only $15,600 needed per year, so no need to save more by traditional standards.

The real concern is for those families that make more than $145K per year. The $29K allowance between 401k and IRA contributions isn’t really enough for these people. Congress should change the rules so that pre-tax contribution limits vary as a percentage of HHI so that everyone is permitted to save 20% of their income for retirement. This is especially true for high HHI families since social security replaces a lesser percentage of income as income increases. DH and I both work, but the $58K allowance between our collective retirement plans isn’t even 10% of our HHI. And we don’t even get a tax break on the IRA contributions anyway. So illogical and unfair. LMC and MC families don’t know how lucky they are![/quote]

You're "permitted" to save as much of your income as you want. You just don't get to deduct more than the allowance from your taxable income. If you want to save more of your $580,000 (at least, based on your 10 percent stat) household income, I'm sure you can figure out how to open a taxable investment account. [/quote]

The point is those making $400K+ are already paying in the top tax bracket, loosing most itemized deductions (as they phase out and thanks to AMT).  The tax rate is already ridiculously high and another loss is the inability to save as much percentage wise thru tax free investing.  Majority of us are not worth $10M+.  And if we are, we are paying high taxes on all earnings (ie stock options are taxed, no way around it). 
SO yes, we make alot more, but we also pay significantly more in taxes.  Most of us are not able to reduce our taxes---it's just not legal.  So given that by Age 45 I have paid more in state taxes than 95% of people will ever pay in Federal and state taxes over their lifetime, I do think I'm entitled to comment on this.  I more than pay my "fair share"; yet I don't get most tax deductions available to the majority of Americans.  
That doesn't even take into account federal taxes.  We pay alot already. It's not us you should be mad at for "not paying taxes".  It's the ultra wealthy, and businesses that don't pay the appropriate tax rate.  [/quote]

I'm not mad at you for "not paying taxes," I'm mad at you for being obtuse about this.

1) You are paying exactly your "fair share," at least according to our tax laws, not more than it, unless you're deliberately overpaying. 
2) No one said you weren't entitled to comment.
3) You seem to think lower-income people are "lucky" not to pay a higher percentage of their income in taxes, but unless someone is paying you this much money for a job that requires absolutely no critical thinking abilities, I'm sure you can find your way to the realization that virtually everyone making the median HHI would much rather have your problems and your after-tax income than have a lower tax bracket and make $78,000 a year pre-tax.
4) My family makes more than twice the $145,000 a year figure you listed above as the cutoff between the "lucky" low earners and those of us in the upper middle class who are suffering so badly, so yes, I understand that it's frustrating to pay high taxes on a high income. Fortunately, you have plenty of money to use to salve your emotional wounds.
5) I do agree with you that the ultrawealthy and corporations should pay far more in taxes! Congratulations on finding some common ground. Now stop spouting the rest of your completely un-self-aware nonsense.[/quote]

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