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Old 03-18-2024, 02:06 PM
Stu from NYC Stu from NYC is offline
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Quote:
Originally Posted by Altavia View Post
"Money in traditional 401(k) and IRA plans represent “tax time bombs” for people. Because the IRS ultimately taxes every dollar in there, including all investment earnings. So there’s no incentive for the federal government to seize those funds."

Not so sure that would be a bad thing for some younger people.

It's not unusual to end up paying more taxes on your RMD withdrawals than you would have payed in tax on on money earned 20-30 years ago.
The key word is ultimately, they want to get their hands on the money sooner.