Reagan retirement tax loophole

The next check gets cut in a few short weeks. But for many everyday Americans, what I call Reagan ’s “702(j) Retirement Plan” is more than a tax-free income source – it’s a second shot at a well-deserved retirement. But President Reagan himself stepped in.

He considered the tax relief so important he wanted to. Like last year, when under Obama, Congress closed the “file and suspend” loophole – robbing many poor and middle-class workers of $30to $60in potential benefits. But thankfully, there’s another tax -free retirement income source that the Social Security Administration is powerless to close.

See all full list on gobankingrates. Boost your retirement income with simple trick. An obscure tax loophole from the Reagan years may be your key to securing a profitable retirement for you and your family. Ronald Reagan is probably the best example of this.

Most Americans seem to believe that he was a tax -cutter of heroic magnitude. See, it was Reagan who helped slip a special ‘ loophole ’ law many years ago. Surprisingly, this ‘ loophole ’ remains wide open today. And a few Americans are already using it to pile up fortunes.

Hungry for tax -free retirement income? A Roth IRA can provide that. The payroll tax hike was designed to generate large Social Security surpluses for years, which would be set aside to cover the increased cost of paying benefits when the boomers retired. Let’s have a look at the events leading up to this proposal. Reagan and the government had big financial problems.

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Some have suggested reducing benefits. Others propose an income tax on benefits, or that the retirement age should be moved back to age 68. And there are some who would simply fund social security out of general tax ilunds, as welfare is funded.

I believe there are better solutions. There are IRS requirements and The Trump Tax Cut shows you how to qualify. The “paycheck loophole ” that could boost your bottom line by $13or more (page 17) How to use Section 9and LEGALLY pay ZERO in federal income tax ! No you don’t have to give up your U. The one-time move to “upgrade” your retirement account and “ERASE” up to $50in taxable income. Some of those who do know about it wonder whether it’s a safe route to take.

Many people don’t know about it. You could save a bundle! SEE ALSO: Taxes in Retirement : How. If you have an IRA, pension, or 401(k), your retirement money is at serious risk.

Maximize Potential Tax Benefits by Opening an IRA Before Tax Day.