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Message
Peter Thiel has $5 Billion in a Roth IRA
Posted on 6/24/21 at 3:47 pm
Posted on 6/24/21 at 3:47 pm
LINK
Pretty interesting read... he (and others) has exploited a loophole to use a Roth IRA to invest in startups... company goes public and shares become worth millions
Pretty interesting read... he (and others) has exploited a loophole to use a Roth IRA to invest in startups... company goes public and shares become worth millions
17
Posted on 6/24/21 at 3:57 pm to lowspark12
This will just further the idea that everyone should hate the rich.
Posted on 6/24/21 at 3:58 pm to lowspark12
I saw that bit on CNBC as well. Talk about utilizing the Roth IRA to the fullest!
I wonder if Forbes rankings and the likes take these kind of tax nuances into account. I’m assuming it’s just strictly based off net worth
I wonder if Forbes rankings and the likes take these kind of tax nuances into account. I’m assuming it’s just strictly based off net worth
Posted on 6/24/21 at 3:59 pm to lowspark12
quote:
exploited a loophole
How is it a loophole if it is expressly written into the tax code?
Every person in America should be doing every single thing they can, within the law, to pay the least amount of taxes. If you feel differently, the IRS does accept donations.
Posted on 6/24/21 at 4:03 pm to Azazello
Yeah, I saw that too. That's how Roth IRAs work...everything in them is tax free. But you can only contribute if your income is under $139k, so he clearly just started with something really small, very early, and did insanely and unbelievably well.
This post was edited on 6/24/21 at 4:05 pm
Posted on 6/24/21 at 4:06 pm to Chucktown_Badger
quote:
But you can only contribute if your income is under $139k
Not exactly. There are backdoor ways that will probably be closed some day.
Posted on 6/24/21 at 4:19 pm to Chucktown_Badger
quote:
so he clearly just started with something really small, very early, and did insanely and unbelievably well.
Did you read the article? He used his Roth to purchase founder’s shares of his own startup, PayPal, for a tenth of a penny per share. I mean good for him for sticking it to the man but let’s not act like any joe blow can duplicate this
Posted on 6/24/21 at 4:20 pm to Azazello
I just read the ProPublica article. What a garbage piece. I hate the way following the law is framed around taxes.
Posted on 6/24/21 at 4:21 pm to Chucktown_Badger
I agree this not really a loophole. It is what it is.
The only question I would have is how the valuation of the initial founder shares were valued (ie 1/10th of a cent valuation).
The rest is what it is and is fair game to do.
The only question I would have is how the valuation of the initial founder shares were valued (ie 1/10th of a cent valuation).
The rest is what it is and is fair game to do.
Posted on 6/24/21 at 4:21 pm to Azazello
quote:
Every person in America should be doing every single thing they can, within the law, to pay the least amount of taxes. If you feel differently, the IRS does accept donations.
What I wish we would do Is simplify the tax law, remove most deductions, make filing online via irs and all states free.
The real crooks are the tax companies in the middle banking on complexity and charging you to pay money you are obligated to pay. It's a fricking racket
Posted on 6/24/21 at 4:21 pm to lowspark12
The last place I worked was set up so that two of the owners had a portion of their capital set up as a Roth IRA. Pretty genius.
Posted on 6/24/21 at 4:24 pm to slackster
quote:
What happened next deprived the U.S. government of untold millions in tax revenue. Perhaps billions. Thiel used his new Roth IRA to purchase shares of his startup.
From ProPublica. Imagine typing this and thinking it’s a bad thing.
Posted on 6/24/21 at 4:28 pm to lowspark12
Thanks Peter Thiel for fricking up Roths for us regular folks. When changes are made it won't be to people with $5B in their Roths.
Posted on 6/24/21 at 4:38 pm to lsu13lsu
quote:
Thanks Peter Thiel for fricking up Roths for us regular folks. When changes are made it won't be to people with $5B in their Roths.
The last Roth modification floated was for Roths over $5MM, fwiw.
Posted on 6/24/21 at 4:47 pm to Azazello
quote:
How is it a loophole if it is expressly written into the tax code?
After reading the article, the advantage comes from ridiculously super sweet founding shares (fractions of pennies on the $), that are purchased via Roth IRA account, ultimately skyrocketing in value and then shielded from taxes.
Skipped back door; went right through the Roth IRA "front door" with magical door key.
Posted on 6/24/21 at 6:41 pm to lowspark12
(no message)
This post was edited on 7/25/22 at 5:23 pm
Posted on 6/24/21 at 6:59 pm to Captain Crackysack
quote:
Did you read the article? He used his Roth to purchase founder’s shares of his own startup, PayPal, for a tenth of a penny per share. I mean good for him for sticking it to the man but let’s not act like any joe blow can duplicate this
Exactly, I’m tired of the “these are the rules” cheerleaders for the rich. These are not the rules and clearly don’t apply to the average individual, which what an IRA is for. So now, the backdoor Roth will be closed because of a prick like this. And upper middle America will take it up the arse again. And billionaires will simply find something else to exploit.
Posted on 6/24/21 at 7:09 pm to Chucktown_Badger
PayPal at .0001 cents to start then FB
Posted on 6/24/21 at 7:12 pm to lowspark12
For now.
Pretty sure Biden and Co. have their eyes on that (and yours).
Pretty sure Biden and Co. have their eyes on that (and yours).
Posted on 6/24/21 at 7:14 pm to igoringa
quote:
I agree this not really a loophole. It is what it is.
The only question I would have is how the valuation of the initial founder shares were valued (ie 1/10th of a cent valuation).
The rest is what it is and is fair game to do.
Well that’s the loophole, obviously. That nobody wants to see. There’s almost no other way to get even $1 billion in a Roth IRA unless you have a time machine to buy stock you know will go up (essentially what they did here) or are the worlds greatest day lucky day trader and outperforms every professional for 50 years.
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