Subject: 2. Aspects of the tax system that are unfair. Comment: Employees who are lucky enough to have access to a 401K at work can contribute the maximum to it, plus any company match, plus they can still contribute to an IRA or ROTH. For a person over age 55, that would be $14,000 + $4,000 catch-up, plus $4,000 IRA or ROTH, plus $500 catch-up = $22,500 plus any company match. For those of us who don't have access to a 401K, we can contribute only $4,000 + $500 = $4,500. Period. Why are 401K users able to save $18,000 more every year toward their retirement than the rest of us? Our retirement needs are the same no matter what company we work for, and we shouldn't be penalized just because our employer doesn't offer a 401K. The current system is playing tax favorites and is very unfair. I think their should be one maximum dollar amount...the same for everybody. And that maximum should include any company match in the total. So if the ceiling was set at $25,000 and you had access to a 401K, you and your employer together could contribute a total of $25,000. If you don't have access to a 401K ( or just don't like what investments it offers ) you could put $25,000 into an IRA or ROTH. We all deserve the same tax advantges when saving for retirement, and it shouldn't depend on whether or not our employer offers a 401K. |