Here is RBE's email:
James,
Red alert. GOP plans to limit 401(K) contributions to $2400 a year in order to force people to put money into ROTH accounts that make you pay taxes up front. The additional tax money will then be used to give rich people and corporations tax cuts. The Republicans are planning this in secret, will roll the plan out quickly and force a quick vote before opposition can mount. Coupled with the elimination of the state tax deduction, this will cost teachers thousands a year + a decent retirement nest egg.
I have been calling ALL Republican members of the House this morning in NY State and letting them know we KNOW what they are planning and we will hold them accountable politically if they do this. I urge you to post this on the blog, along with contact info for the House, to get readers to start making calls and make sure these Republicans know they're not going to get away with this without a fight.
Here's a link for all House members in NY:
https://www.govtrack.us/congress/members/NY#representatives
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www.govtrack.us
Find your U.S. Congress senators and representative in New York using a map.
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At least obama was able to improve black unemployment, black single parent households, black poverty, teen pregnancy, the racial divide, oh nevermind.
ReplyDeleteWhat the hell does this have to do with James’ post?! You’re an idiot! And a racist. Please, god, tell me you’re not really a teacher. You’re just a paid troll sent in by Campbell Brown, or something.
DeleteRacists? Where where?
DeleteYou know Cuomo wants our pensions slashed via the NYSCC and our TDA interest rate as well - but the UFT will endorse him. Where are the UFT TV ads against the NYS Constitutional Convention? Is Cuomo really the devil or is Mulgrew? I see no real difference between the Republican Party or Democratic Party.
ReplyDeleteAnd that has precisely what to do with the topic of this post? Oh, never mind.
ReplyDeleteI'm not an Obama fan, but your comment is a fallacious red herring, intended to divert people's attention away from an issue of material importance to them.
Go away, and snuggle up to your pals over at Breitbart News; while you're there, you can fill them in on the news that teachers are the real threat to the Republic, and feel like you matter.
You seem bitter and toxic. Maybe you should stop reading and posting on this blog. Never mind! I respect your right to voice your opinion Msybe you could show others the same courtesy.
DeleteI don't recall anything Obama did that was good for anyone. I agree with Fiorillo and especially with 3:31.
ReplyDeleteI think this is the original point...For 8 years, with a UFT endorsed dem president, the uft was ripped to shreds. I dotn remember 1 time saying "obama is destroying unions, or democrats destroying teacher morale, or with obama in charge, uft gets worst contract in union history or with dems in control 40% of teachers quit in the first 5 years"
ReplyDeleteHope this requires at least 50 votes... But, this is a horrible insult to the hard working middle class. Forcing Roth only front loads revenue, it doesn't change the net. Clearly, they are searching for ways to offset the obvious decrease in tax revenue by placing it in the middle. Smoke and mirrors, probably will work.
ReplyDeleteBut roth limit is $5,500, far lower than $18k.
ReplyDeleteMost retirement plans offer a ROTH version of the 401k, 403b and 457 plan which allows you to put in the max 18k for under 55 and 24k for over 55. That's what they mean by Roth. The money is post tax rather than pretax.
ReplyDeleteThis would utterly and completely screw residents of high tax states, and especially us in NYC, as you are tax deferring State, City and Federal taxes. I've been maxing out the plans we are offered, the 403b for the TDA and 457 NYC Deferred Compensation Plan for years, with plans to move to a lower tax place eventually. It's a bit of a loop-hole that teachers under 55 are actually allowed to contribute 36k into the 403b and 457. This change would devastate my plans, however I would be excited to have a Roth TDA.
However, this would raise huge sums for NYC and NYS, as we would not be able to tax defer.
Finally, I think this would sink the tax proposal. The upheaveal would be huge. They can make changes around the edges, but nothing as big as what's rumored.
I put 18k in 457b and another 18k in tda and another 5500 in roth ira.
ReplyDeleteAnd then...
ReplyDeleteAnd then what?
ReplyDeleteAnd then...
ReplyDeleteYeah, lets wait for an agreememt...
ReplyDeleteI don't get the whole race thing coming from NYC teachers- I still think it's the UFT trying to discredit this Blog because I know Mulgrew HATES James. Keep the racial stuff off or go fight with Norm he loves a good fight.
ReplyDeleteOK so you sock $18,000 into your TDA and another $18k into the city's 457b but you give absolutely no credit for having a union so that you are able to sock away $36,000 a year in pre tax savings. I wish I could save 36k and then beat up my union for not doing anything for me.
ReplyDeleteI forgot the $5500 in the Roth IRA. What do you live off of?
ReplyDeleteMy issue is, as i have stated many times, is that it keeps getting worse, and we keep losing more and more.
ReplyDeleteWorse? How many people can save $41,500 a year?
ReplyDeleteWorse...And i could add more...The point is not just 7% tda, the point is that its gotten worse, its another free giveback that was never restored and never replaced, just like the medical, just like the delayed retro, just like the 1% raises, just like the loss of S/U, no discipline code, excessive paperwork, etc.
ReplyDeleteAgree with 853, there ate surely positives, but tgey get watered down every year. Why do so many quit so soon? Why do we hear these horror stories by so many? Why did we get 10% over 7 years when cost of living is 3% historically. Why can students do whatever they want with no punishment? Why do they do no work and get free grades? Why do i get cursed daily? Death by a million cuts
ReplyDeleteWhy was 8.25 not restored? 7% is good, no question, but its a huge loss over the longrun.
ReplyDeleteIm tired of the "it could be worse answer." its like, the job sucks but you're lucky to have a job
ReplyDeleteOK but who saves $41,500 a year and then complains the union does nothing for them? You know how many workers would be thrilled just to make $41,500 a year.
ReplyDeleteAbility to save is based on a number of things. Should that be held against the poster. Doesnt mean he gets respect ir enjoys waking up every morning. Doesnt mean things atent getting worse.
ReplyDeleteWhat does saving have to do with the uft? If one chooses to save rather than buying expensive clothes, drinking, trips, whatever...Thats just a personal sacrifice.
ReplyDeleteHow many non union jobs have a pension and a 403b or 401k?
ReplyDeleteAgain, no question, some positives, but i could counter with the worsening of benefits and the fact that i am subject to a salary ceiling and a limited top salary. Why are things getting worse instead of improving?
ReplyDeleteThey just voted to kill state and local tax deductions too. You have to make up for the tax breaks to gazillionaires somehow.
ReplyDeleteto 6:15p:
ReplyDeleteYou say the taxes are just front loaded and it doesn't change the net?? Really?? Were you sleeping all through the market crash of 2008? At that time many people on the verge of retirement were forced to work anther 5-8 years to make up for the 40% loss.
If you want the 7% fixed rate, thats one thing to be safe...But you could have the money taxed up front, then put it into stocks, and historically get about the same 7% over the longrun, and then owe nothing when you withdraw later in life. Of course, have to get lucky in that you dont need the money at the time of a huge market correction.
ReplyDeleteThat's why people hold a percentage of bonds, to ride out the lows. 3% withdraw on 1mil is 30k a year. Principal 1 mil shouldn't ever decrease, actually increase and provide inflation protected 3% for anyone's expected life... 4% is close to fail proof in most instances. Just make sure you're in INDEX funds, not high priced funds people talk up....
ReplyDeleteYou guys are smart enough to figure out all of these complicated investments but aren't smart enough to figure out how to organize teachers to get rid of UFT leadership.
ReplyDeleteThats why i will be quitting soon...
ReplyDeleteThis blog makes me laugh. A friend on mine from NYC shared it with me. I teach in Florida. It’s my 19th year and I would trade jobs with any of you. Come work here and then you would really have something to complain about. the comments and complaints are just hilarious!
ReplyDeleteWhat's going on in Florida?
DeleteFair buyout, lump sum plus retro and/or a yearly sum...anybody who wastes their life in this job is either an idiot or desperate for med coverage.
ReplyDelete1204,how many times a day do students tell you to suck their dick?
ReplyDeleteIn nyc as an atr about 8-12 times a day. But that ed notes legend says it's my fault. With friends like that who needs enemies!
DeleteYou pay no state income tax...Cost of living a bunch less as well.
ReplyDeleteNyc teachers are getting screwed bigtime, my issue is how dumb most of us are...in all aspects.
ReplyDeleteGo thru the motions, stay until the best time to leave. Lets see tge final tax reform bill, not sure $2400 from 36k would happen.
ReplyDeleteMy plan has always been to leave immediately after 2020 retro, maximize the next 3 years and mive in from this shit. And that would be way before retirement age.
ReplyDeleteThis is what I am talking about.It is very sad that people are planning their escape rather than figuring out how we fight back.
ReplyDeleteIve tried for 16 years, its wont get any better. I regret becoming a teacher. The best i can do now is get out before i die. Try to enjoy a little of my life.
ReplyDeleteThat sounds a lot like me. Begging my whole career for a job in Staten Island. Nothong but a good record. Cant get an interview. Why bother at this point? Constant abuse from all directions. Traffic, tolls, gas, time...Life down the tubes.
ReplyDeleteWe can get our dignity back if we stick together and become militant. Complaining won't do it.
ReplyDeletePresident Donald Trump tweeted Monday there will be no change to a popular retirement savings plan under the new GOP tax bill.
ReplyDelete"There will be NO change to your 401(k). This has always been a great and popular middle class tax break that works, and it stays!" Trump said in a tweet.
Cutting 401 (k) plans is on the table.
ReplyDelete