Quote:
Originally posted by ltl/fb
(like, could your IRA own that yacht or property? I don't think so, but I'm not sure).
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I thought you were the expert, but I understand that IRA/401ks cannot invest in certain tangible assets, including such things as coins, baseball cards, and what not, but also including real estate (other that REITs) and presumably other things--you can't just own a factory in your IRA.
Because we're on an income system, you have to come up with a transition. You can't just say you get taxed when you pull out savings, because then all retirees get soaked. So if you use CSAs, it's entirely optional. Put in what you want, with the recognition that anything you pull out from that account will be taxed as "income". It's not a perfect system, but within a generation, one could much more easily transition to a pure consumption tax without the need for accounts.
Think outside the box people--it's not a tax shelter, it's just a question of when you pay the tax. With highly beneficial consequences for savings over consummption.
