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.
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.
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:
There are many types of tax-advantaged accounts.
https://www.investopedia.com/terms/t/tax-advantaged.asp
23k is the max annual contribution. The money is taxed upon withdrawal. It’s not “hidden”.
In a 401k? Yes. But if you read the article:
There are many types of tax-advantaged accounts.
https://www.investopedia.com/terms/t/tax-advantaged.asp
If you’re over 50, you can put $30,500 in your 401k, the extra $7500 per year is called a ‘catch-up contribution’