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DeerFlyHater t1_jef1iwu wrote

Reply to comment by lellololes in A good article re: repealing interests and dividends tax by BelichicksBurner

I make faaaaar less then $200K and pay the I&D tax.

Good riddance to a tax that punishes people for living within their means and saving money for retirement.

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smartest_kobold t1_jef26hm wrote

How are you paying any significant I&D tax without being a trust fund baby?

Edit: 401Ks and IRA have tax benefits that let you save for retirement with significant tax benefits. Unless you're maxing out contributions to one or both why would you make taxable investments?

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slimyprincelimey t1_jef6kfp wrote

Because you don't need that many stock holdings to get hit by the tax. I earn significantly under that limit and just by putting away a few bucks a week, I earn significant (to me) dividend income.

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smartest_kobold t1_jeffxa8 wrote

Once you have enough liquid assets to cover emergencies, you should be putting that money in a retirement account with tax benefits.

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False_Influence_9090 t1_jeg7sly wrote

Works for some people. But what if you want to use your nest egg to start a business

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smartest_kobold t1_jeglvy7 wrote

Then pay the tax on the interest from your investments. You'd need ~$80k in the bank before you pay this tax.

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DeerFlyHater t1_jefkgei wrote

Tax advantaged accounts have limits. If you live within your means and sacrifice the newest trend you can hit those limits. When you hit those limits, your savings go into taxable accounts. Additionally a 401K style account wasn't available for the first 10ish years of my career so all I had available was the Roth IRA which was easy to max--then it was back to sticking things in taxable.

GFY with the trust fund baby BS. My folks are still working their blue collar jobs well into their 70s.

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smartest_kobold t1_jefnlek wrote

So, you're older than 50.

If you're putting away $37,000 a year+other tax shelters, you can afford some tax on the rest. "Live within your means and sacrifice" my ass. I'd have to sacrifice eating to put away $37000/year.

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DeerFlyHater t1_jegulkl wrote

Not older than 50. 401K limits are 22,5 for 2023 which is way up 2K from 22. IRA limits are 6,5 for 2023 which is up 500 from 22.

While I just went to public school, I don't think that adds up to 37k.

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smartest_kobold t1_jegxb4a wrote

The numbers change after 50, but you put away $28k last year and $29k this year. Probably more in another tax shelter like life insurance. Plus at least $60k in other investments and probably some home equity.

Why are you pretending to be working class?

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