Chuckanut
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
But is that not cheating in some sense : if one has millions sitting in a retirement account, but withdraws only $30000 a year so he qualifies for the low rate?
Is it cheating? Let's assume two people who made the same total amount of money over a 40 year period of working.
Suppose Mr. Spender spent most of his working life spending every penny he made on booze, fast cars, faster women, casino vacations, and sports tickets. As a result his retirement benefit is SS and a very small 401K account. He easily gets a subsidy.
OTOH, Ms. Saver has lived below her means, denied herself many of the better things in life, and shopped the sales only for things she really needed. She has accumulated fat IRA accounts and can easily withdraw $70,000 a year if she needed it. No subsidy for her.
So, now we reward Mr. Sender with a subsidy, but deny it to Ms. Saver?? Is that fair? I think not.
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