Re: Remember "Bit-Slice" Chips ?

On Mon, 16 Dec 2024, Lars Poulsen wrote:

On Sun, 15 Dec 2024 23:09:13 +0100, D wrote:
D> Ahh... the land of the free! Try 31% in sweden or around 20% where I am
D> now. Oh, and the 31% has a cap, so you only get part of that to fund
D> your own retirement. The rest goes to happy arabians!
>
On Mon, 16 Dec 2024, rbowman wrote:
rb> There is a yearly maximum for the SS tax, which gets raised frequently. It
rb> was nice to max out and have a few weeks without the deduction at the end
rb> of the year. The current cap is $168,600 so I would guess the majority of
rb> the workers don't see those bonus weeks anymore.
>
On 2024-12-16, D <nospam@example.net> wrote:

Jesus! I thought it was only in sweden. Well, as you say it's 168k, so I
imagine that the majority of people in the US never hit the cap.

>
rb> Of course your benefits are taxed. Some states don't tax SS benefits but
rb> this one does so both the Feds and the state have their hands out. Then if
rb> you have an IRA or other retirement account there is a required minimum
rb> distribution yearly which is taxed when you hit 73.
>

Of course it is taxed! ;) And your private retirement savings are taxed as
well, so a nice double tax. First the salary, and then you save it, and it
is of course taxed again at withdrawal.

>
The salary that goes into the retirement account is NOT taxed (the
contribution is tax deductible in the year it is earned) but when you
take money out later,  the withdrawals are taxable income. Not so
unfair.
>

If you're content to wait until you are at least 55 to withdraw money, you
can start a retirement foundation. The gross assets are taxed with a flat
tax of 0.3% or so every year, regardless of if the assets shrink or grow.
And in return you can withdraw your retirement savings for free. This is
not very well known, and I have never heard of a company that offers this.

>
So an after-tax savings account. How is this different from an ordinary
savings account ... I guess the difference is that the interest is
tax-free? Sweden special!

The difference is that in an ordinary savings account, you put in taxed money. In this type of account, your company can put in gross earnings, have the capital gains being taxed at only 0.3% (ish) flat fee per year, and then when you, the employee, withdraw it, it's taxed as retirement income.
If you put in your taxed savings into a "kapitalförsäkring" you can withdraw the money tax free, but the flat tax is higher, it's currently 0,888% for 2025.
How did you do the rb/D quoting? Do you have a script for that? It was very beautiful.