a month ago
- Peter Thiel turned a small Roth IRA into a $5 billion tax-free fortune by using startup shares purchased at extremely low prices.
- Ultrawealthy individuals exploit Roth IRAs as tax shelters, with accounts sometimes worth hundreds of millions or billions, despite contribution limits.
- Congress allowed Roth conversions for the wealthy in 2006, enabling them to move large sums into tax-free accounts with a one-time tax payment.
- IRS budget cuts and enforcement challenges hinder efforts to police retirement account abuses, such as undervalued private company shares.