[USER]

It’s complete horse that IRA accounts have a yearly cap on contributions.

It’s my money.

I should be able to contribute as much as I want to

I’m curious about the reasoning behind the annual contribution limits for Individual Retirement Accounts (IRAs).

Why do these accounts have yearly caps on contributions?

I understand that there are specific limits set by the IRS, but I’m interested in the rationale behind these restrictions.

How do these limits benefit the economy, individuals, or the overall retirement system?

Moreover, what factors influence the determination of these caps, and have there been significant changes to these limits over the years?

Any insights or detailed explanations would be greatly appreciated.

[Tamara]

You can contribute as much money to your investment as you want. The government is just saying that they are willing to offer a tax incentive on $7000 of it.

[Aria]

You can invest in your regular taxable account as much as you want to – it’s your money.

But the government does not owe you an unlimited tax incentive, which is what ira is.

Educate yourself before getting mad at everything.

Good thing you posted anonymously.

[Nicholas]

Open a brokerage account and put as much in as you’d like.

[Robert]

The IRS Created these tools to quiet the masses about taxes. There are ways to contribute more but you have to be a business owner.

Also, there are other investment vehicles that predate the tax code like life insurance

[Alicia]

Invest it in a non qualified account in the same funds and voila…. You’re doing the same thing, but like Tamara Olsen said, the govt is only willing to give you a tax break on 7K. They want their share too.

[Michael]

I like the the fact the I can choose to save my money, but if I go to take some out, for whatever reason, the government believes that they should capitalize and take your money as a penalty.

[John]

You can’t shelter all of your money without taxes. Govt too needy for that.

[Matthew]

They do limits so that the rich can’t take advantage. Imagine if the rich put billions in a Roth.

They would never be taxed ever again on it no matter how much they earn from the market which is their primary source of income.

[David]

It really grinds my gears that Roth IRA contributions become unavailable after a specific income level is reached.

[Michael]

You think it’s your money? Take out a dollar bill and tell me whose name is printed on there.

Hint – It’s not yours!

[Jack]

Youll make more money elsewhere. People are so caught up with “pre tax” investments, they fail to see that investing with taxable income could provide far more profitable in the long run.

[Edwardo]

It’s because, it’s too powerful. Same with HSA accounts, they are powerhouses, need to have a limit

[Colin]

Write to your reps. Ask for increased caps. Perhaps a progressive rate that allows increased contribution tiers up to specified levels of income.

[Tho]

You can open a brokerage account and invest after tax dollars. Also max fund money in Variable and index universal life policies.

Look up Tax free retirement books by various authors

[Alex]

Well it’s gonna be inaccessible without penalty until 59.5 anyway, taxed as income as well when it’s withdrawn.

Pros and cons.

Maybe a good time to think about doing multiple account types and looking at tax efficiency in the future as well as now.

[Josh]

Us tax code isn’t designed to be fair to wage earners. If you want better tax treatment, become more entrepreneural….

[Shawn]

Everyone already told you the fault behind your logic, but I felt you. I feel the same way about HSAs.

Like why do only high deductible plans qualify?

Shouldn’t everyone be able to save for their future healthcare?

We’re all going to need it eventually so why not?

For now we just keep saving in a non tax advantaged account…..

[Author]

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