Phil Cannella – Phillip Cannella News
Phil Cannella: “So my contention is,
if I have money coming out of a pay check that I don’t have to put on my tax return because I’m putting it in a 401, and I understand when you have a 401 it’s great that you have an employer that’s going to be putting a percentage in with you, but none the less when you take money from a paycheck and not list it on your income tax and you put it into a 401k or any retirement account, isn’t it so that you lose control that you now taken on a partner called IRS, and even though at this point in time in our country the highest tax bracket is 39 percent and people are still the senior owner of this account, can’t IRS raise taxes for those in the distribution mode over 70 and a half and all of a sudden it could flip flop and IRS could be the senior partner? Say like the tax rate was in the early 90’s a high of 55 percent.”
Alicia Munnell: “So I think that if you think taxes are going up, and I think taxes are going up then you would do well in putting your money into a Roth.”
Phil Cannella: “I was just going to say…you got to it.”
Alicia Munnell: “You will pay taxes now, but they should be lower than what you’re going to pay in the future.”
Hear more from the interview with Phil Cannella and Alicia Munnell on The Crash Proof Retirement Show®. Saturdays at 11am and Sundays at 1pm on Talk Radio 1210AM, WPHT!