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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRomney built a golden IRA (up to $100 million shielded from initial taxes) while he was at Bain
It is one of the most striking elements of Mitt Romneys financial fortune. He has used the seemingly bland investment vehicle known as an individual retirement account established by Congress to help average Americans save a modest amount for retirement to shield at least $20 million and as much as $100 million from initial taxes.
Even the lesser amount would put Romneys IRA in the top 0.001 percent of all such accounts in the country, according to analysis by the nonpartisan Employee Benefit Research Institute. The extraordinary size of Romneys IRA has led Democrats to question how he could amass such a fortune given that annual contributions to the fund are strictly limited.
Romney has not provided details about how his IRA grew so large. But Romney associates with direct knowledge about the matter said Bain Capital partners used their IRAs as a pool of investment money, enabling them to make personal investments in Bain deals, many of which earned spectacular returns. Much as a lower-dollar investor might pick mutual funds for an IRA, the Bain partners could make side investments in the firms deals and then watch as their retirement funds grew.
http://www.boston.com/news/politics/articles/2012/08/11/mitt_romneys_ira_is_unlikely_centerpiece_of_wealth_and_tax_avoidance/
Historic NY
(37,449 posts)former9thward
(31,798 posts)If you had a pension fund buyout, for example, all of that can be rollover-ed to an IRA. I have never contributed a dime to my IRA but I have several hundred thousand in it from rollovers.
CJCRANE
(18,184 posts)just put a little money into it and it grows exponentially. I'd like to know his secret.