- First Name
- May 1, 2020
- Reaction score
- Palm Beach Gardens, FL
- 2011 Mercedes Sprinter 2500
- Retired surgical oncologist
Did you know there Is a difference between income and taxable income?If you set up a regular IRA as your long term investment vehicle, your contributions are tax free up to an annual limit but your withdrawals are fully taxed. If you are able to set up a Roth IRA, using after tax income or rolling over a regular IRA into a Roth by paying the owed taxes over a designated time period, your withdrawals are Federal Income tax free. Now if you choose to live in a state without income tax, you’ll pay no taxes on Roth withdrawals, only sales commissions to your broker....yes, but why isn't it just income again? It is just income.
It encourages people to hide income as weird sources, which just adds to our costs as taxpayers preparing our books or as taxpayers paying the guys who look over them.
...VATs are annoying but simple and don't apply to this conversation. They're basically a capital gains tax on every transfer.