• jeffw@lemmy.worldOP
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    7 months ago

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

    Edit: since people seem confused by the lack of clarity, copying my reply from below:

    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

    • die444die@lemmy.world
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      7 months ago

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

      • jeffw@lemmy.worldOP
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        7 months 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

      • BeautifulMind ♾️@lemmy.world
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        7 months ago

        23k is the max annual contribution

        If you’re over 50, you can put $30,500 in your 401k, the extra $7500 per year is called a ‘catch-up contribution’