In my previous blogs, I talked about in my previous blogs on the difficulties of the middle class with saving and competing with the wealthy to close the wealth gap.  In order to save like the wealty, you need access to the tolls that they can utilize to save.  One of the ways to generate massive savings is through the tax loop hole in the IRA.

One can save tax deferred money in the IRA though contributions and roll over distributions.  The other way is how the wealthy play:  place undervalued non-publicly traded assets in the IRA to stay under the maximum contributions limits with the intent for the assets to skyrocket in the future.  This can be accomplished with the original investment like penny stock then see the price return to a normal price per share which would contribute millions to an IRA account.

How this is used is really disturbing.  First, the IRS calculated that an individual cannot accumulate that type of assets in an IRA though conventional methods of normal contributions and returns.  Second, most Americans cannot save at the levels of the wealth.  Third, the IRA was not intended to be a tax shelter.  Fourth,   314 millionaires had more than $25 million saved in their r IRA with an average holding of $258 million.   1% of all IRA accounts equating to 630,000 millionaires while 99% or 42 million taxpayers held less than $1 million with an aver savings of $100,000.

This is one of the areas that can be part of the tax reform for 2015.  Let’s communicate to our representatives that there needs to be more equitable saving platforms for the middle class to assit with their needs to generate wealth.

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Gary Kapanowski – Lean Six Sigma Master Black Belt – Excelsior

The following blog is the opinion of Gary Kapanowski and  It is the sole intent to broadcast this opinion from Gary Kapanowski and exclusively and not to reflect on any other institutions or organizations associated with Gary Kapanowski or

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