OPINION:
Yesterday’s edition of The Washington Times carried a commentary by Gene Marks suggesting the “no tax on tips” savings that would befall tip-earners could go directly into a 401(k) IRA or even a Roth IRA to benefit workers’ future retirement (“The one big thing missing from the ‘No tax on tips’ bill,” Commentary, June 4).
While this is a great idea on paper, it seems to be one of those great ideas that won’t seem so great to the tip-earners who need the money now. Why? They have to offset the huge increases in costs of living that were exacerbated by the Biden administration’s spend-it-all-and-spend-it-now fiscal policies. A fix would be to make the retirement contribution voluntary, not a requirement.
A corollary to this idea may help people on the other end of the working spectrum. The aforementioned Roth IRA can only accept after-tax, “earned” income. If the word “earned” could be deleted regarding people over the age of 65, then the Roth IRA could accept any after-tax income.
When people are nearing or have already begun retirement, their future monetary needs become much clearer in their minds and planning. If they were able to deposit some of their retirement funds left over each month after paying their bills, this small amount could earn interest, tax-free, and really help them as they progress through their retirement and their remaining monetary reserves.
With Social Security and its imminent demise an almost daily story in the news, this change for our senior citizens could help them help us by making their money go further. Sounds like a good, workable fix to me.
JAMES KOUT
Bowie, Maryland
Please read our comment policy before commenting.