(10-31-2021, 05:23 PM)mikesez Wrote:

(10-31-2021, 02:30 PM)KingIngram052787 Wrote: There's caps on what you can put in, those people took significant risks to build that value and they were either really smart or got really lucky.  Good for them, keep the government hands out of it.

Edit: Also, if it's a traditional IRA and was tax free going in, it'll be taxed coming out at some point.  We can't be double and triple taxing everything.

It wouldn't be a double tax. If it's a traditional IRA with hundreds of millions in it, the money would roll into a regular account and get taxed once.
Also, don't be naive, they didn't take risks. They got special deals from their friends. They made a shell corporation just to filter income through it and make it look like capital gains. It's the kind of trick that becomes very easy to do with today's tax code, when you have tens of millions of dollars.  Do you want to buy into a shell corporation like that? Sorry! They are not traded publicly. Since there is only one buyer, the price can be low going in, and since there's only one seller they can conspire to make the price high going out.

I misunderstood your initial statement regarding converting to a regular account.  Yes it technically wouldn't be a double tax of those gains at that point in time; however, it would be taxed upon conversion to a regular account and then future gains would also be subject to taxes, so in theory you are looking at some form of double taxation that the current vehicles were designed to protect you against, i.e. only being taxed once upon withdrawal.

And I disagree, they did take risks.  Those businesses they invest can fail.  Anyone with a significant amount of money invested into 1 (or few investments) is taking a risk.  Sure, it's less risky for them since they're rich, but it's still significant risk.

---