Comments on: Tax the Rich – and Limit Retirement Contributions? It Doesn’t Add Up.

By: Aaron Friedman, National Practice Leader - Tax-Exempt, the Principal Financial Group, Princor Registered Representative

Tue, 29 Jan 2013 20:32:35 +0000

I don’t disagree with the priority. Retirement readiness for all is where we should be putting our efforts, and the tax debate distracts from that objective.

By: Andrew Martin

Andrew Martin — Tue, 29 Jan 2013 17:55:32 +0000

I just don’t see this as anywhere near the biggest problem we have with our lack of national savings or our national retirement policy. You’ve already mentioned that a 457 could be made available for these folk. Often a DB SERP is in place for an oh-BTW long-ago frozen or terminated DB plan. if neither, they can save on their own without a tax subsidy. I am more concerned about the average Janes and Joes, and how they are supposed to retire. The folks you mention will be fine under any scenario.

By: Aaron Friedman, National Practice Leader - Tax-Exempt, the Principal Financial Group, Princor Registered Representative

Tue, 29 Jan 2013 17:27:43 +0000

Good point. But the same thing could really be said about savers at any income level. Our national policy has been to encourage savings with tax deferral and consider we’re not really talking about truly wealthy people here. Just high income middle class. There are already large pressures on these folks. In my example, we’re talking about people contributing to the good of their communities.

By: Andrew Martin

Andrew Martin — Mon, 28 Jan 2013 21:25:46 +0000

The person making $250k simply saves the additional money needed to reach a 11%-15% target OUTSIDE of a qualified plan. What’s the problem? It’s not like they are forced to spend the money instead.