Homes don’t cost the same in Topeka versus the Bay Area. Neither does gas. Neither does a night out on the town. In fact, just about everything in Topeka is probably cheaper. So does it make sense to have a static IRA maximum donation rate when cost-of-living varies so wildly from place to place? No, it does not. There’s no reason to consider this an equitable system. The folks over at lazyman and money make a much better argument than I ever could.
Check it out at Adjust Roth IRA Limits, Please!
