If the market were to go up 8% a year and investments double every 8-9 years, I could see this impacting us when we hit 75. But I guess there are other problems to have. I guess we will donate money to charity to stay under the cap if it comes down to it.
in their retirement accounts. most people aren’t saving enough as it is. To me, it is one more knee jerk reaction to a few that have managed to accumulate money in an IRA. Now, I have run some numbers and really can’t figure out how an IRA can grow to $100M without some serious compounding of 50% a year, but taxes will be paid on that IRA as soon as the person turns 70.5 and the taxes will be about $3M a year.
The AMT was designed over 30 rich people. Now it affects millions. The upper 1% will always be rich, have some advantages the rest of us don’t have, but the gov’t doesn’t have to keep creating rules because of 1% of 1%.