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  •  Is Investment Income the same (1+ / 0-)
    Recommended by:
    elwior

    as what goes into a 401K?  

    "During times of universal deceit, telling the truth becomes a revolution­ary act. " George Orwell

    by zaka1 on Wed Apr 25, 2012 at 03:43:15 PM PDT

    [ Parent ]

    •  No, investment income is the interest that you (2+ / 0-)
      Recommended by:
      zaka1, elwior

      earn on the money that went in to a 401k, not the money deposited.

      It is also the income that all those brokers made investing in derivatives that were constructed to bet against the mortgage backed derivatives that the 401ks were invested in (See Magnetar or Citibank for that matter)

      "If you don't sin, then Jesus died for nothing!" (on a sign at a Mardi Gras parade in New Orleans)

      by ranger995 on Wed Apr 25, 2012 at 04:20:01 PM PDT

      [ Parent ]

      •  Thanks I should have (3+ / 0-)
        Recommended by:
        ranger995, elwior, Bud Fields

        remember that since you declare earned interest on your 401K.  Derivatives have brought the whole world down and has destroyed everything.  Trillions of dollars in derivatives and there was no collateral to back them up if the loans defaulted.  I still have to suck in some air after saying that because it goes against everything I was taught growing up.

        I remember standing outside a realtor's office looking at pictures of homes for sale and their prices (and feeling faint).  The realtor came outside to talk to me.  It was 2006 and I told him this is going crash, this is going crash, it can't keep going.  He laughed out loud at me and said "never."  Wonder what he is doing now?  

        "During times of universal deceit, telling the truth becomes a revolution­ary act. " George Orwell

        by zaka1 on Wed Apr 25, 2012 at 05:01:07 PM PDT

        [ Parent ]

        •  See my other comment, there are actually two (2+ / 0-)
          Recommended by:
          elwior, zaka1

          types of 401k, one where you make contributions prior to taxes, and the other where you contribute after taxes.

          The 1st is all considered income when collected after retirement, the 2nd would be treated as I said above.

          Sorry for the confusion.

          It seems most 401k's are of the first type. The one I had is not.

          "If you don't sin, then Jesus died for nothing!" (on a sign at a Mardi Gras parade in New Orleans)

          by ranger995 on Wed Apr 25, 2012 at 05:05:09 PM PDT

          [ Parent ]

          •  My 401 K contributes to the wealthy too (2+ / 0-)
            Recommended by:
            ranger995, zaka1

            My companies plan only offers lousy, high fee funds, fees of which go directly to the Wall Street uberwealthy. I suppose I could keep it in the money market fund where it pays .0000000000001% and the Wall Street crowd gets to use it as government insured ante money for their gimmicky "products" they gamble with.

            Oh, and let's not even get into how Wall Street manipulates the market by making transactions a nanosecond before the average investor. Meanwhile, be very quiet, the SEC is trying to get some sleep.

            I wouldn't even bother with a 401K except my employer has a small matching portion which is what I contribute.

            -7.5 -7.28, I refuse to believe corporations are people until Texas executes one.

            by Blueslide on Thu Apr 26, 2012 at 06:16:19 AM PDT

            [ Parent ]

    •  You know what, I may be wrong in that last (2+ / 0-)
      Recommended by:
      zaka1, elwior

      statement. Your contribution to a 401k may be done prior to taxes, so in that case, all of the money would be subject to being taxed. I am not sure it is all investment income though.

      It's a good question. Usually investment income is just on the   capital gains, but since the 401k money is deposited before taxes, the rules are probably different.

      I should not have misspoke.

       

      "If you don't sin, then Jesus died for nothing!" (on a sign at a Mardi Gras parade in New Orleans)

      by ranger995 on Wed Apr 25, 2012 at 04:54:22 PM PDT

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      •  I remembered when I read your (2+ / 0-)
        Recommended by:
        ranger995, elwior

        first reply, you get an interest statement that you declare on your taxes.  Thanks for your replies.

        "During times of universal deceit, telling the truth becomes a revolution­ary act. " George Orwell

        by zaka1 on Wed Apr 25, 2012 at 05:04:20 PM PDT

        [ Parent ]

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