Lady of the house wonderin' where it's gonna stop
- Sep 23, 2006
- Reaction score
- Political Leaning
The Education of a Libertarianwww.cato-unbound.org
Peter Thiel • April 13, 2009 •
"..Most importantly, I no longer believe that freedom and democracy are compatible."
https://www.propublica.org › article › lord-of-the-roths...
Lord of the Roths: How Tech Mogul Peter Thiel Turned a Retirement Account for the Middle Class Into a $5 Billion Tax-Free Piggy BankJun 24, 2021
"Up to this point, Thiel was one of the few Americans who had managed to amass prodigious Roth accounts. Among the others were at least three additional PayPal alums.. Even so, the existing income limits managed to keep most of the superrich out. Then, in the latter years of the George W. Bush administration, Congress took a wrecking ball to those defenses, and the wealthy stormed in. The change centered on a..maneuver known as a Roth conversion. It works like this: If you have money in a traditional IRA, you can transform it into a Roth as long as you pay one-time income tax on the money. By converting the account to a Roth, no additional income taxes are ever due. ..Over the last 20 years, Thiel has quietly turned his Roth IRA —.. Conversions had existed since the Roth’s conception, but they had been restricted to Americans making below $100,000 per year.
In 2006, Bush and the Republican-controlled Congress were seeking to slash taxes on capital gains, the type of income that can be generated when stocks or other assets are sold. But they faced a problem. Budget rules required them to find a way to make up for the lost revenue. Their solution was widely viewed as a gimmick: using one tax cut to pay for another tax cut. A provision was included in the Bush bill that lifted the ban on the wealthy making Roth conversions. Since the maneuver requires a payment of tax up front, it counted in short-term congressional budget models as actually raising revenue. The tax breaks didn’t come until later. “It will have large and damaging effects on the federal budget for decades to come,” wrote budget expert Len Burman ... The new backdoor into the Roth opened in 2010 and set off a frenzy of conversions among hedge fund managers, industrialists and heirs, the tax records reviewed by ProPublica show.
Weschler, the Berkshire Hathaway executive, amassed a giant traditional IRA in his years as a private equity partner and hedge fund manager. He converted a whopping $130 million. .. After paying the one-time tax, both men saw their Roth accounts soar. In his statement, Weschler .. added that he paid more than $28 million in federal taxes to convert his account to a Roth. Some of the wealthy managed to avoid even that one-time tax bill...."
Why You Can't Turn Your Roth IRA Into a Billion-Dollar Tax ...https://www.propublica.org ›
Jul 1, 2021 — Last week, ProPublica published the story of how ..tech investor Peter Thiel was able to turn a Roth IRA initially worth ...
House Bill Would Blow Up the Massive IRAs of super wealthy -https://www.propublica.org ›
Sep 21, 2021 —
Proposal to Rein in Mega IRAs Faces Lobbying Resistance ...https://www.propublica.org ›
Oct 25, 2021 — Several companies, including one backed by Peter Thiel, are fighting a proposal ...
Super-Rich Americans Feel Relief as Tax Hikes Are Canceled ...https://www.bloomberg.com ›
Dec 20, 2021