Why are IRA maximum contributions so low?

StephenWeinstein

An annuity is an option, with no maximum contribution, but it is not as good in other ways. It gives you tax deferral on the earnings within the account, but you don't get the tax deduction that a traditional IRA gives or the tax-free earnings that a Roth IRA gives.

Anonymous

You're better off investing in a regular taxable account than a pre-tax IRA if you plan to retire with substantial assets. Pre-tax accounts absolutely SUCK in terms of taxes, RMDs and all the higher medicare premiums you'll be paying since premiums are based on taxable income. Max your Roth, then invest in a regular taxable account. The gains are tax-deferred until you sell, and even then, you're only taxed at the lower long-term capital gains tax rate instead of at the ordinary income tax rate. And there are no required minimum distributions that are going to hike up your medicare premiums and unnecessarily increase your income tax. Ever. Avoid pre-tax retirement accounts like the plague (if you plan to accumulate substantial assets). Retiring boomers are starting to realize just how screwed they are with all that pre-tax money they are being forced to take out annually and pay ordinary income tax on - all of which contributes to higher medicare premiums.

Ambistoma

Open an HSA, if you're eligible, and you can still invest $3450 for last year as well as $3500 for this year.

Anonymous

Government doesn't want to defer any more taxes.