Quote:
Originally Posted by am_vanquish
However, there's going to have to be some policy changes from our legislators if the average person is going to have a fighting chance (the issue you bring up often about the 5k limit on IRAs is a perfect example).
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Yes, my IRA example applies. Even the 401k plan limits apply. The max contribution is what, $16,500? Sounds like a lot, but that limit is the same whether you earn $50,000 or $500,000. That limit is plenty for the lower income. It isn't nearly enough for the higher income. Then there are additional limits imposed by individual employers. As I've posted before, my wife is only allowed to contribute 50% of her gross to her 401k. We wanted to do 100% but we couldn't. She only works part time so 50% of her gross is only about $3,000/year.