Spencer Jakab
speaker
981 appearances
14 recordings
1 series
first heard Jul 2017
last heard Jun 2021
Spencer Jakab’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsNo recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.
Appearances
You have the tax savvy and the knowledge and the financial backing to be able to do that.
And when you change jobs, you know to move it to another firm or cash it out to an IRA.
You have some financial knowledge in terms of how to invest it appropriately.
If you're someone making $30,000 or $40,000 a year, you probably don't work at a place that has a 401k or are much less likely to.
You probably have a lot less tax savvy, and you're much more likely to encounter the kind of emergency in your life where you have to borrow from or cash out part of your 401k and pay a big penalty in the process.
Well, basically, the way the subsidy that you're given for contributing to a 401k is a tax benefit.
Whatever your marginal tax rate, if you...
take part of your income and put it into the 401k, then it comes out before taxes.
If your marginal tax rate is 35% and you put in a thousand dollars, you get a $350 subsidy.
If it's 10%, then you get a hundred dollars subsidy.
And so basically the more you make, the less subsidy you get.
And so his idea is to do away with the tax deductibility altogether and to give everyone a
a flat tax credit, even if you make so little that you don't owe any tax.
And there are a lot of people who make so little that they don't pay federal tax.
So he wants to give a flat 26% tax credit.
Basically, you get 26% of your contribution back as a tax credit.
It's like a matching contribution instead of having it be tax deductible.
Because the way that it works now is the more you earn, the more of an upfront benefit you get from contributing to a 401k, which is sort of perverse.
The more you earn, the more secure you should be in retirement.
The less you earn, the less secure you're going to be.
Showing 201–220 of 981 · page 11 of 50
← Previous
Next →