Edit to add: Even if Romney was taking advantage of a tax-loophole; remember this -- he wasn't the only one given that opportunity nor the only one who took it. He also wasn't the Representative who allowed it into the tax-code.

Originally posted by Americanist
reply to post by ownbestenemy

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Edit to add: Even if Romney was taking advantage of a tax-loophole; remember this -- he wasn't the only one given that opportunity nor the only one who took it. He also wasn't the Representative who allowed it into the tax-code.

Interesting little caveat... Seems to tie directly into the big business - banking paradigm.

The equivalent of mirroring mobsters because extorting from myriad patrons pays off.

Mitt Romney’s enormous IRA

Class warfare...wealth envy....they are all the same. The real culprits is an anemic and idiotic society that continues to vote in clowns (even while wrangling their fists in fury over their policies) that perpetuate these types of tax loopholes.

A former Bain Capital partner said that Bain Capital had a 401(k) plan that allowed employees to invest in its deals. Romney's 401(k) was rolled over to his IRA. Apparently the IRA has holdings in Bain Capital, the private equity firm Romney helped to start. Private equity is equity capital that is not quoted on a public stock exchange. It consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.

(...)

Some expert commentators speculate that Mr. Romney uses a strategy involving offshore funds to avoid UBIT. He could have had the IRA invest through an offshore affiliate of the private-equity firm, known as an offshore blocker corporation, which in turn invests the same money in the private-equity partnership. The tax is avoided because the IRA technically is investing in the offshore corporation, not in a private-equity partnership.

Originally posted by charles1952
reply to post by Blackmarketeer

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Dear Blackmarketeer,

I think I agree with you completely. One tiny nit to pick, all we know is that the value of his IRA is between $20.7 million and $101 million. Not that it changes the discussion much.

I'm probably naive, but if this firm can describe a legal way to shuffle money around, I'm sure Romney's advisors found one too.

I was relieved to hear that in 2017 he would have to start drawing money from his IRA and those withdrawls would be taxed at 35%. Looks like he's going to have to pay one way or the other. Of course, another way around that is to donate it to charity. As the article stated, he's been very generous in the past.

A fascinating lesson, and I learned a lot. Thanks.

With respect,
Charles1952

Originally posted by Blackmarketeer
reply to post by ownbestenemy

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That was an explanation by a law firm on how an IRA could have reached $100 million. Mitt Romney sure didn't do it by maxing out his contribution level (which would take somewhere in the neighborhood of 70,000 years to reach that amount).