[mech765]

Seems like the rich are able to save more for retirement than the poor, and will use the most effective means to do so.

Contribution limits to retirement plans mean that for a billionaire, their 401k or IRA balance is very unlikely to be a significant portion of their portfolio. The typical case I can imagine for this would be putting their roughly $20,000 worth of 401k contributions into company stock every year and then seeing their company go 100x.

[PaulHoule]

See this case study:

https://www.propublica.org/article/lord-of-the-roths-how-tec...

Peter Thiel managed to get a $5 billion IRA.

[lesuorac]

I'm still not sure how buying stock in your own company isn't a Prohibited Transaction.

> [1]Prohibited transactions in a qualified plan

> 4. Any of the following acts between the plan and a disqualified person:

> [1] Disqualified person. You are a disqualified person if you are any of the following.

> 8. An officer, a director (or an individual having powers or responsibilities similar to those of officers or directors), a 10% or more shareholder, or a highly compensated employee (earning 10%-or-more of the yearly wages of an employer) of a person described in (3), (4), (5), or (7).

[1]: https://www.irs.gov/publications/p560#en_US_2022_publink1000...

[icantbebothered]

It is, but as we have witnessed for decades, and intensely more so in recent years, the application of the law is inversely proportional to the wealth of the defendant.

[niij]

A $5 Billion Roth IRA! Implying tax free withdrawals.

[wmf]

That trick may be illegal though.