• jeffw@lemmy.worldOP
    link
    fedilink
    arrow-up
    0
    ·
    2 years ago

    Because you can hide hundreds of thousands annually in there. No working class individual makes that much. That money should be taxed

    • die444die@lemmy.world
      link
      fedilink
      English
      arrow-up
      0
      ·
      2 years ago

      23k is the max annual contribution. The money is taxed upon withdrawal. It’s not “hidden”.

      • jeffw@lemmy.worldOP
        link
        fedilink
        arrow-up
        0
        ·
        2 years ago

        In a 401k? Yes. But if you read the article:

        Today, wealthy taxpayers can protect up to $452,500 per year in tax-advantaged accounts in a single year, saving up to $203,600 on their taxes. And they can keep their money in tax-advantaged accounts far longer.

        There are many types of tax-advantaged accounts.

        https://www.investopedia.com/terms/t/tax-advantaged.asp