Is it me or is all the rules for creating different buckets for tax treatment of investments, based ONLY ON CONGRESSIONAL WHIM, just absolutely insane??
I myself have:
TSP (401K), which could have a mix of Roth, Traditional, and tax free contributions in it, limited investment choices.
Roth IRA
Trad IRA
After tax investment account
Other possibilities: HSA, SEP IRAs, Solo IRAs, Coverdell ESAs, UGMA/UTMAs, Annuities, the list keeps going...
Why couldn't we just keep things simple!!!
What I would propose: A single "tax advantaged" account, like a tIRA but with MUCH higher contribution limits (say $60k/yr) and maybe start phasing it out at $250k/yr of income, get rid of the employer-tied 401ks, and no early withdrawal penalties (just pay taxes on it).