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View Diary: Romney and Bain profited from massive Medicare Fraud (128 comments)

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  •  It isn't puzzling at all (15+ / 0-)

    Wealthy people have been doing this for awhile with Roth IRAs to shield gains and the mechanism isn't puzzling at all.  He had options that he put in the IRA that he could value at pennies a share.  That can be thousands of shares even under the $5000 contribution limits.  Once the options are fully realized, they are worth much much much more.  It isn't a hidden trick.  Other "entrepreneurs" have been using this trick as well.  It has become so abused that there are calls to alter the Roth IRA rules to limit the amount the entire account can be worth.  Numbers that I read are around $10 million for total account value.

    "It looks like how music sounds." --My four year old nephew upon looking through a kaleidoscope for the first time

    by Mote Dai on Wed Jul 18, 2012 at 05:44:51 PM PDT

    [ Parent ]

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