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Politics : Welcome to Slider's Dugout
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To: John Carragher who wrote (47369)1/30/2025 11:45:41 AM
From: GUNSNGOLD1 Recommendation

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Mevis

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"IRA is not earned income."

Yes, distributions pulled from a IRA are not counted as "earned income" when you do a withdrawal but they are ABSOLUTELY earned income when you contribute.

You are confusing Income and IRA distributions.

You have to "earn" income to contribute to a IRA.

The income contributed to a IRA is still subject to FICA taxes in the tax year of when earned.

This earned Income is subject to "deferred taxes" until it is withdrawn.

So the point is always made that "my tax bill" will be lower in retirement because I'm not "earning" income. I get to take advantage of the lower tax bracket on the distribution as opposed to my tax bracket when I was earning the income to contribute to the IRA.

The only IRA that you "pay taxes" on is a Roth IRA.

Unless i'm missing the point you are trying to make.

It sounds like some kind of means testing that you are referring to now.

I don't know what the "additional annual charge" you are referring too.

G-n-G
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