Author Topic: Republicans Consider Sharp Cut in 401(k) Contribution Limits  (Read 75435 times)

CheapScholar

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #250 on: November 01, 2017, 06:14:12 PM »
Now there are a few local papers circulating an AP report from an hour ago quoting an anonymous senior GOP lawmaker that the tax bill will have zero changes to 401(k) deductions when released tomorrow.

At this point we should just wait 12 hours or so and see.  But, it appears the WH is winning this battle against Kevin Brady and House leadership. 

aspiringnomad

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #251 on: November 01, 2017, 08:47:32 PM »
Nothing really in here, but it's a pretty good summary of where things stand:

http://www.reuters.com/article/us-usa-tax-issues-factbox/factbox-trump-tax-plan-stumbles-on-local-tax-deduction-401-idUSKBN1D1681?il=0

Nobody knew that tax reform could be so complicated.

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #252 on: November 02, 2017, 04:23:45 AM »
They are trying to fix the income problem by shifting where the income comes from. The simple solution would be to cut spending to pay for tax cuts. Like defence.

CheapScholar

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #253 on: November 02, 2017, 07:18:36 AM »
They are trying to fix the income problem by shifting where the income comes from. The simple solution would be to cut spending to pay for tax cuts. Like defence.

+ 1,000,000,000

toganet

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #254 on: November 02, 2017, 07:26:58 AM »
They are trying to fix the income problem by shifting where the income comes from. The simple solution would be to cut spending to pay for tax cuts. Like defence.

Yes, I wish we could have a discussion about defense spending, but it's become a sacred cow for both parties.  A big reason for that is that much (if not most) of the tax dollars spent on defense can be better understood as money paid to private corporations to provide goods and services.  The corporations provide jobs across the country, which means a) congress doesn't want to cut jobs in their home district and risk re-election, and b) it's redistribution of tax dollars to companies who donate a lot of money to the candidates who can ensure their continued gravy train.

Add to that that things like bombs are very expensive, one-time-use items, and you've got a pretty nice business model.

sherr

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #255 on: November 02, 2017, 07:39:18 AM »
There's no gaming involved. Mathematically if you use a traditional pre-tax account or a roth account, you will come out with the same amount of money either way, as long as the tax rate is identical from the time you contribute to the time you withdraw. Tax savings from pre-tax accounts are reinvested in the above scenario.

This is not even close to true. Mathematically they're the same if your *marginal* tax rate now is equal to your *average* tax rate in retirement.

A quick back-of-the-envelope calculation assuming you're married, in the 25% tax bracket, and today's tax rates (which means all numbers are expected to adjust with inflation, so the answer is in also in inflation-adjusted dollars) tells me you'd have to withdraw about $260,000 / year from your Traditional 401k / IRA in retirement before your average tax rate would be 25%.

If you're like most Americans / especially people on the forum and you're looking at around $40,000 instead, then your average tax rate in retirement would be 9% with Traditional accounts. That is an enormous difference from 25%, so no they are not "the same". Cutting Traditional contributions in favour of Roth is indeed a huge additional tax on the middle / upper middle class.

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #256 on: November 02, 2017, 07:42:05 AM »
They are trying to fix the income problem by shifting where the income comes from. The simple solution would be to cut spending to pay for tax cuts. Like defence.

Yes, I wish we could have a discussion about defense spending, but it's become a sacred cow for both parties.  A big reason for that is that much (if not most) of the tax dollars spent on defense can be better understood as money paid to private corporations to provide goods and services.  The corporations provide jobs across the country, which means a) congress doesn't want to cut jobs in their home district and risk re-election, and b) it's redistribution of tax dollars to companies who donate a lot of money to the candidates who can ensure their continued gravy train.

Add to that that things like bombs are very expensive, one-time-use items, and you've got a pretty nice business model.

yeah b/c america has a jobs problem not a spending problem.

Man lets think about that for a minute.  the government has a spending problem
the citizens have a spending problem. which makes a need for more jobs to exist.

and here we are on a forum that discusses mindful spending.  This cult needs to grow and get our fingers into the government.

ZiziPB

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #257 on: November 02, 2017, 07:52:04 AM »
Latest and greatest: https://www.bloomberg.com/news/articles/2017-11-02/here-are-the-house-gop-s-tax-bill-talking-points

SALT preserved up to $10K
No changes to 401k
AMT eliminated completely

Helvegen

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #258 on: November 02, 2017, 07:57:15 AM »
There's no gaming involved. Mathematically if you use a traditional pre-tax account or a roth account, you will come out with the same amount of money either way, as long as the tax rate is identical from the time you contribute to the time you withdraw. Tax savings from pre-tax accounts are reinvested in the above scenario.

This is not even close to true. Mathematically they're the same if your *marginal* tax rate now is equal to your *average* tax rate in retirement.

A quick back-of-the-envelope calculation assuming you're married, in the 25% tax bracket, and today's tax rates (which means all numbers are expected to adjust with inflation, so the answer is in also in inflation-adjusted dollars) tells me you'd have to withdraw about $260,000 / year from your Traditional 401k / IRA in retirement before your average tax rate would be 25%.

If you're like most Americans / especially people on the forum and you're looking at around $40,000 instead, then your average tax rate in retirement would be 9% with Traditional accounts. That is an enormous difference from 25%, so no they are not "the same". Cutting Traditional contributions in favour of Roth is indeed a huge additional tax on the middle / upper middle class.

I thought the author was more referring to the super rich plugging their retirement accounts with severely undervalued stocks and other assets, then letting them blow up to their 'true' value inside the account. If you have a roth account, it becomes very apparent why the rich would want to game the system (more) this way and actually want more roth space to play with.

DavidAnnArbor

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #259 on: November 02, 2017, 08:00:58 AM »
Latest and greatest: https://www.bloomberg.com/news/articles/2017-11-02/here-are-the-house-gop-s-tax-bill-talking-points

SALT preserved up to $10K
No changes to 401k
AMT eliminated completely

How could this be revenue neutral and not blow up the deficit bigly ?

sherr

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #260 on: November 02, 2017, 08:11:44 AM »
There's no gaming involved. Mathematically if you use a traditional pre-tax account or a roth account, you will come out with the same amount of money either way, as long as the tax rate is identical from the time you contribute to the time you withdraw. Tax savings from pre-tax accounts are reinvested in the above scenario.

This is not even close to true. Mathematically they're the same if your *marginal* tax rate now is equal to your *average* tax rate in retirement.

A quick back-of-the-envelope calculation assuming you're married, in the 25% tax bracket, and today's tax rates (which means all numbers are expected to adjust with inflation, so the answer is in also in inflation-adjusted dollars) tells me you'd have to withdraw about $260,000 / year from your Traditional 401k / IRA in retirement before your average tax rate would be 25%.

If you're like most Americans / especially people on the forum and you're looking at around $40,000 instead, then your average tax rate in retirement would be 9% with Traditional accounts. That is an enormous difference from 25%, so no they are not "the same". Cutting Traditional contributions in favour of Roth is indeed a huge additional tax on the middle / upper middle class.

Whoops, silly ol' me was using the single tax bracket numbers. The real numbers for married-filing-jointly are:
Break-even at 25%: $360,000 /year retirement spending
Average tax rate at $40,000 spending: 8%

dandarc

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #261 on: November 02, 2017, 08:17:10 AM »
Latest and greatest: https://www.bloomberg.com/news/articles/2017-11-02/here-are-the-house-gop-s-tax-bill-talking-points

SALT preserved up to $10K
No changes to 401k
AMT eliminated completely

How could this be revenue neutral and not blow up the deficit bigly ?
Probably isn't, but if I've read some things correctly, all they have to do is fudge the numbers enough to show it is less than $1.5 trillion to the bad over the next 10 years and get enough democrats on board in the senate to wave a rule there.  That or just live with the mandatory spending cuts in a lot of programs that will kick in if they don't wave the senate rule.  So much of government budgeting is complete bullshit, I think they'll be able to show whatever needs to be shown on the "revenue neutral" front.  If they can muster the votes to actually pass it, which I don't think is a certainty.

thenextguy

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #262 on: November 02, 2017, 08:34:57 AM »
Latest and greatest: https://www.bloomberg.com/news/articles/2017-11-02/here-are-the-house-gop-s-tax-bill-talking-points

SALT preserved up to $10K
No changes to 401k
AMT eliminated completely

How could this be revenue neutral and not blow up the deficit bigly ?

Haha...revenue neutral? Hilarious. Yes, it will blow up the deficit.

I'm a red panda

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #263 on: November 02, 2017, 08:52:39 AM »
Latest and greatest: https://www.bloomberg.com/news/articles/2017-11-02/here-are-the-house-gop-s-tax-bill-talking-points

SALT preserved up to $10K
No changes to 401k
AMT eliminated completely

How could this be revenue neutral and not blow up the deficit bigly ?

My guess is it won't be revenue neutral.


But it does seem like there are plans to tax offshore earnings higher (which surprises me. That isn't very business friendly.)
They also seem to be working to prevent people from using the pass through rate for their personal taxes.

2Birds1Stone

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #264 on: November 02, 2017, 09:19:28 AM »
Happy they aren't touching 401k!

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #265 on: November 02, 2017, 09:31:03 AM »
You see those child tax credits - an extra 600 per kid plus 300 per parent ... this all looks to be great for mustachians so far.

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #266 on: November 02, 2017, 09:44:53 AM »
You see those child tax credits - an extra 600 per kid plus 300 per parent ... this all looks to be great for mustachians so far.

I'd say this looks to be great for billionaires.  Still remains to be seen how great it is for most mustachians (who are a pretty wide range of income, though I think skew high "normal" income levels).

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #267 on: November 02, 2017, 09:49:13 AM »
You see those child tax credits - an extra 600 per kid plus 300 per parent ... this all looks to be great for mustachians so far.

I'd say this looks to be great for billionaires.  Still remains to be seen how great it is for most mustachians (who are a pretty wide range of income, though I think skew high "normal" income levels).
its a tax credit when you FIRE this should help eliminate all federal taxes depending on your spending level.  and will allow for more tax gain harvesting.

frugalecon

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #268 on: November 02, 2017, 09:56:30 AM »
Based on the text (Section 1501), looks like the plan eliminates back door Roths. Oh well...

TexasRunner

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #269 on: November 02, 2017, 09:58:34 AM »
I'm personally glad they are slashing the mortgage deduction.

Its still 500K.  No reason in my opinion to subsidize an excessive lifestyle.

ixtap

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #270 on: November 02, 2017, 10:08:07 AM »
Based on the text (Section 1501), looks like the plan eliminates back door Roths. Oh well...

Well, it makes sense. Does it also apply to mega back door Roths?

frugalecon

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #271 on: November 02, 2017, 10:11:00 AM »
Based on the text (Section 1501), looks like the plan eliminates back door Roths. Oh well...

Well, it makes sense. Does it also apply to mega back door Roths?

I may have spoken too soon..I was inferring from a description...need to find the text of the actual bill. Sorry if alarm is unwarranted.

Here is the text of the summary document:

Provision: Under the provision, the rule allowing recharacterization of IRA contributions and conversions would be repealed. The provision would be effective for tax years beginning after 2017.

Looking at it again, I think I was hasty with my conclusion,
« Last Edit: November 02, 2017, 10:14:31 AM by frugalecon »

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #272 on: November 02, 2017, 10:13:21 AM »
Running tally of what i've found thats relevant to this group

25% bracket starts at 90k/45k

standard deduction now 24/12

Child tax credit 1600 up from 1000 plus 300 credit per parent

Mortgage deduction up to 500k purchase price

SAL Property tax Capped at 10k deduction

havent found anything on SAL income Tax

Still cant find anything on personal exemptions i assume they were eliminated
« Last Edit: November 02, 2017, 10:15:41 AM by boarder42 »

frugalecon

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #273 on: November 02, 2017, 10:15:32 AM »
Running tally of what i've found thats relevant to this group

25% bracket starts at 90k/45k

standard deduction now 24/12

Child tax credit 1600 up from 1000

Mortgage deduction up to 500k purchase price

SAL Property tax Capped at 10k deduction

havent found anything on SAL income Tax

Still cant find anything on personal exemptions i assume they were eliminated

Deductibility of alimony is eliminated, which may apply to some. Personal exemptions are eliminated.

sol

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #274 on: November 02, 2017, 10:16:04 AM »
Running tally of what i've found thats relevant to this group

25% bracket starts at 90k/45k

standard deduction now 24/12

Child tax credit 1600 up from 1000 plus 300 credit per parent

Mortgage deduction up to 500k purchase price

SAL Property tax Capped at 10k deduction

havent found anything on SAL income Tax

Still cant find anything on personal exemptions i assume they were eliminated

Keep up the good work, boarder.

starguru

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #275 on: November 02, 2017, 10:18:54 AM »
What does the mortgage interest rule mean?  Does it mean if the value of the home is more than 500k, or the value of the mortgage is more than 500k?  Is 500k a hard cut in that you get the break if your mortgage is 499k and if it is $1 more you get no break?  Or is it somehow prorated?

sokoloff

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #276 on: November 02, 2017, 10:24:31 AM »
I'm personally glad they are slashing the mortgage deduction.

Its still 500K.  No reason in my opinion to subsidize an excessive lifestyle.
Whether or not a fixed mortgage value is "excessive lifestyle" or not depends very much on the local cost of living, IMO. The median single-family house sales price in my town hit $1.675MM last year.

doggyfizzle

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #277 on: November 02, 2017, 10:30:10 AM »
You see those child tax credits - an extra 600 per kid plus 300 per parent ... this all looks to be great for mustachians so far.

Do you know if the GOP proposed changing the AGI phase-out limits for the child tax credits or do they stay the same under this plan?  I've been looking all morning and can't find anything on this yet.

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #278 on: November 02, 2017, 10:32:06 AM »
single parents get 2/3rds of the 24k MFJ get.

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #279 on: November 02, 2017, 10:32:32 AM »
You see those child tax credits - an extra 600 per kid plus 300 per parent ... this all looks to be great for mustachians so far.

Do you know if the GOP proposed changing the AGI phase-out limits for the child tax credits or do they stay the same under this plan?  I've been looking all morning and can't find anything on this yet.

havent found anything on that yet.

dandarc

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #280 on: November 02, 2017, 10:33:23 AM »
https://waysandmeansforms.house.gov/uploadedfiles/tax_cuts_and_jobs_act_section_by_section.pdf

This isn't the full text, but a summary by section of the full proposed bill.

shawndoggy

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #281 on: November 02, 2017, 10:33:42 AM »
for those of us in states with NO state and local income tax, but relatively high property tax, this is a boon, right?  I lose a deduction I never had, and I gain a new deduction worth 10k?

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #282 on: November 02, 2017, 10:35:28 AM »
for those of us in states with NO state and local income tax, but relatively high property tax, this is a boon, right?  I lose a deduction I never had, and I gain a new deduction worth 10k?

You already had a deduction on your property taxes now its capped

ixtap

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #283 on: November 02, 2017, 10:36:29 AM »
for those of us in states with NO state and local income tax, but relatively high property tax, this is a boon, right?  I lose a deduction I never had, and I gain a new deduction worth 10k?

Why weren't you deducting your property tax before?

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #284 on: November 02, 2017, 10:36:45 AM »
The tax credit phase out for children now stars at 230k for MFJ half that for single.

shawndoggy

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #285 on: November 02, 2017, 10:37:57 AM »
Why weren't you deducting your property tax before?

LOL I'm sure I do.  not as geeked out on this as you guys!  Thanks for reminding me how little I know. (usually I have to rely on my wife for that)

dandarc

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #286 on: November 02, 2017, 10:39:21 AM »
Repealing recharacterizations is kind of a big deal.  Seems to be specifically targeting the Roth IRA horse race.

http://www.madfientist.com/roth-ira-horse-race/

Not sure the juice is worth the squeeze on that one - the summary linked above seems to indicate they're repealing recharacterizations for both contributions and conversions.

shawndoggy

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #287 on: November 02, 2017, 10:39:29 AM »
but to restate... so long as my property taxes are $10k or less, and I already don't pay SAL income tax, this doesn't hurt me, right?

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #288 on: November 02, 2017, 10:45:42 AM »
child tax credits begin in 2018

I havent found anything retroactive yet but just saw that piece of info.  PRetty sure everything is 2018 - they reduced the inservice withdrawal age to 59.5 from 62

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #289 on: November 02, 2017, 10:47:22 AM »
but to restate... so long as my property taxes are $10k or less, and I already don't pay SAL income tax, this doesn't hurt me, right?

depends this is an itemization thing so this is a difficult question to answer - they doubled the standard deduction to 24.4k and got rid of the personal exemptions.  Last year i had 28k in itemized deductions and got 8k in personal exemptions.  if they had left deducitons alone when i had 2 kids i would have come out far better with the old deduction/personal exemption stand point.

doggyfizzle

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #290 on: November 02, 2017, 10:48:53 AM »
The tax credit phase out for children now stars at 230k for MFJ half that for single.

Thank you!

dandarc

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #291 on: November 02, 2017, 10:49:55 AM »
Repealing recharacterizations is kind of a big deal.  Seems to be specifically targeting the Roth IRA horse race.

http://www.madfientist.com/roth-ira-horse-race/

Not sure the juice is worth the squeeze on that one - the summary linked above seems to indicate they're repealing recharacterizations for both contributions and conversions.
Effective for tax year 2017 - woof.  Hope no one has made a mistake on the Roth / Traditional designation.  #Can't read
« Last Edit: November 02, 2017, 11:10:31 AM by dandarc »

ixtap

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #292 on: November 02, 2017, 10:52:03 AM »
Repealing recharacterizations is kind of a big deal.  Seems to be specifically targeting the Roth IRA horse race.

http://www.madfientist.com/roth-ira-horse-race/

Not sure the juice is worth the squeeze on that one - the summary linked above seems to indicate they're repealing recharacterizations for both contributions and conversions.
Effective for tax year 2017 - woof.  Hope no one has made a mistake on the Roth / Traditional designation.

What about people who are on the borderline? We don't contribute until we do our taxes because SO freaked out about the recharacterization the year before we were married.

dandarc

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #293 on: November 02, 2017, 10:53:47 AM »
Repealing recharacterizations is kind of a big deal.  Seems to be specifically targeting the Roth IRA horse race.

http://www.madfientist.com/roth-ira-horse-race/

Not sure the juice is worth the squeeze on that one - the summary linked above seems to indicate they're repealing recharacterizations for both contributions and conversions.
Effective for tax year 2017 - woof.  Hope no one has made a mistake on the Roth / Traditional designation.

What about people who are on the borderline? We don't contribute until we do our taxes because SO freaked out about the recharacterization the year before we were married.
Strike that - says "effective for tax years after 2017".  So if this passes, probably everyone should do what you're doing - wait until you know for sure to make the contributions.

boarder42

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #294 on: November 02, 2017, 10:54:38 AM »
Repealing recharacterizations is kind of a big deal.  Seems to be specifically targeting the Roth IRA horse race.

http://www.madfientist.com/roth-ira-horse-race/

Not sure the juice is worth the squeeze on that one - the summary linked above seems to indicate they're repealing recharacterizations for both contributions and conversions.
Effective for tax year 2017 - woof.  Hope no one has made a mistake on the Roth / Traditional designation.

nothing is effective this year its after Dec. 31 2017

CheapScholar

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #295 on: November 02, 2017, 10:57:16 AM »
Can't believe they're proposing a standard deduction of $24,000 (married) and keeping the 401(k) pretax deduction where it is.

I think this is a real win for frugal upper middle class people like me.

dandarc

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #296 on: November 02, 2017, 10:59:53 AM »
Repealing recharacterizations is kind of a big deal.  Seems to be specifically targeting the Roth IRA horse race.

http://www.madfientist.com/roth-ira-horse-race/

Not sure the juice is worth the squeeze on that one - the summary linked above seems to indicate they're repealing recharacterizations for both contributions and conversions.
Effective for tax year 2017 - woof.  Hope no one has made a mistake on the Roth / Traditional designation.

nothing is effective this year its after Dec. 31 2017
Yeah - re-read that and corrected myself in the immediately prior post to this one.

Anyway - suppose if you find yourself in the situation of having made a contribution that you would have recharacterized, you could still withdraw the contribution up to your tax filing deadline, along with any earnings, paying tax and penalties on the earnings.  Then make the contribution to the other one.  Probably best to just wait until you're fairly sure on income for future years though.

therethere

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #297 on: November 02, 2017, 11:01:19 AM »
Can't believe they're proposing a standard deduction of $24,000 (married) and keeping the 401(k) pretax deduction where it is.

I think this is a real win for frugal upper middle class people like me.

To be fair, they are eliminating exemptions. So really its only a difference of 2700 off your taxable income. Not huge in my opinion.

ZiziPB

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #298 on: November 02, 2017, 11:08:08 AM »
Has anyone seen anything on capital gains taxation?  Should we assume that they are taxed at 0 up to the top of the new 12% bracket?

Livewell

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Re: Republicans Consider Sharp Cut in 401(k) Contribution Limits
« Reply #299 on: November 02, 2017, 11:12:00 AM »
Has anyone seen anything on capital gains taxation?  Should we assume that they are taxed at 0 up to the top of the new 12% bracket?

I was just looking for the same, found no detail yet

I think thatís a safe assumption, up to $90K, although I am hoping it would get bumped up to the second bracket.

Overall this is a bad plan for our family as we live in a high tax state (CA), at least pre FIRE.