Last Night: The Drawbacks of 401k Plans on PBS Frontline

[CRFSaver]

Re: Last Night: The Drawbacks of 401k Plans on PBS Frontline

actually 401K's dont benefit the wealthy too much since they are limited in how much they can put into their 401K's. 15k is the max and there is a high wage earner test that also limits how much they can put in their 401k. My last room mate made about 95k last year but from the high wage earner test he was only allowed to put in 4,000 for the year. Please tell me how that benefits the wealthy as it is in their best interest to get the lower paid individuals to contribute and are limited if they dont.

wealthy actually benefit from other retirement schemes at the top of the house such as deferred compensation plans that pay extreme above market interest rates and insurance policies taken out for the main reason to compensate the individuals if the company fails (and hence making the program unqualified). Or my personal favorite is the gross up to pay the taxes on the option gains.

[VJW]

Re: Last Night: The Drawbacks of 401k Plans on PBS Frontline

I don't feel "bad" that someone making a million (or whatever) gets more of a break than I do or that it's not mathematically equivalent as a percentage.

Neither do I, as I’ve profited from it. Not to mention that the number of millionaires and billionaires exploded during the ‘90s. The difference is that unlike the last five years, the rest of the society prospered as well.

should I look in my mailbox for a check from a rich democrat?

I’ve never grasped this retort. Have you ever received a check in your mailbox from the pocket of a “rich” Republican ?

when the dems finally get control back in 18 months (thank God!), I'll be anxious to see how quickly they run the taxes back up.

Well, I would be open to what else one could do given that income tax revenues are near 1959 levels.

if it's truly necessary (as opposed to controlling spending which the nutjobs in there now sure as heck aren't doing)

While it’s true that spending is up, the MASSIVE drop in revenue from the four preceding rounds of tax cuts is a much larger problem. According to the Congressional Budget Office, the cost of the four rounds of tax cuts enacted is almost THREE TIMES as great as the cost of the Iraq war (including the costs of the military operations and subsequent reconstruction), all homeland security expenditures, the costs of rebuilding after September 11, all military action in Afghanistan, and all other costs of the 'Global War On Terrorism', COMBINED.

I'll be fine with it, it's doubtful that will have much of an effect on me either.

Preventing any further piling up of federal debt, let alone paying it down, would indeed effect you.

that self interested mentality is probably what keeps me from seeing the "big picture", I confess.

I consider my concern with the condition of the overall society a self interest.

#