To curb retirement tax breaks for the rich or not

Here is a CNN Money article that asks if President Obama is trying to curb retirement savings tax breaks for the "rich". I have to agree with the writer when she speaks about the purpose of the myRA accounts that President Obama is currently pushing. As I wrote about in this article, most everybody is eligible and can open up their own accounts with no minimums aside from perhaps a small value like $5 or so.
I took it upon myself to enhance the graph that they had on the page by the rate that the benefit gave them vs the amount of income that they earned.

Benefits and Tax breaks for the wealthy

Benefits and Tax breaks for the wealthy

You’ll notice that I added a rate of how the tax breaks work for the person(s) in whichever category they are in. When you see the graph, you’ll notice that the benefit achieved is better, the higher the salary, although there is a significant drop at the end in the over $1,000,00 worth of income.

So, does the myRA account sound like it will really generate enough “lower/middle income” earners interest to get them to invest in accounts?

PS: If anybody wants the spreadsheet for this, they are welcome to it Income_Benefit_BenefitRate.

This entry was posted in Income Tax, Retirement Savings and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Protected by WP Anti Spam