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Thursday, October 27, 2016

July 16 (Bloomberg) — The most mysterious of the unexplained mysteries about Mitt Romney’s considerable wealth is how he was able to amass between $21 million and $102 million in his individual retirement account during the 15 years he was at Bain Capital LLC.

How did he do it, given the relatively small amounts that the law permits to be contributed to such a plan on an annual basis? Romney has not explained this conundrum, and seeing as he wants to become president, he would be wise to start talking — if for no other reason than there might be many Americans who would like to emulate what he did.

During Romney’s tenure at Bain Capital — from 1984 to 1999, although a recent Boston Globe article uncovered Romney having a role at Bain until 2002 — the firm used a so-called SEP-IRA, which is like a 401(k) retirement plan but is funded entirely by the employer and has a much higher maximum contribution: about $30,000 annually during the period Romney was at Bain. Assuming Romney maxed out these tax-deferred contributions, he would have invested roughly $450,000 in his SEP-IRA during his years at Bain.

While there are limits to the amount that can be contributed tax-deferred to an IRA, there are no restrictions on the amount of money that the contributed capital can earn and can continue to earn, on a tax-deferred basis, even after the contributions have stopped. (The Internal Revenue Service will get its pound of flesh from Romney when he takes the money out of the IRA.) The only limit is the skill, or luck, of the IRA’s owner. If you are the Warren Buffett of IRA investors, it is conceivable that you could turn $450,000 into as much as $102 million — an increase of 227 times — but not very likely, especially as in the last decade or so, the stock market has been a roller coaster. Mere investing mortals would be lucky to still have $450,000 in the account. (The median American family has $42,500 in traditional IRAs, according to the Investment Company Institute.)

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Copyright 2012 The National Memo
  • What a surprise. The systems is constantly being tweaked at the pleasure of the rich, by the rich and for the rich. It is the American way. Are we suppose to believe that the owners of our society really want a better tax system? One that actually reduces the number of deductions and one-off’s used by nearly all. It is a useful fiction used in election years to make the rubes feel better. A bunch of lawyers and moneyed interests will never do anything to harm their bottom line or livelyhoods.

  • Don

    Boy this guy sure has masses of money from Bain and everywhere else. Maybe he has enough to buy the United States so he can become the king with his queen beside him. How much money does she have abroad?

  • PaulTranLee

    Romney is very smart to cheat, lie to get money from any where in the world. We should elect him in this November because he will lie, cheat to get money from other countries specially from China for us.

    • DurdyDawg

      You misunderstand his intention Paul, the money he will lie, cheat and steal for will be for him and his minions, NOT the Country. He didn’t give relief for the thousands of blue collars he put on the street nor would he recognize a poor person if they came up to him with a tin can, what makes you think he’d be willing to share any profits with MILLIONS of poor and blue collar Americans?

  • William Deutschlander

    It is called CREATIVE ACCOUNTING and 99.9% of the time in not legal or ethical, but then Romney. the capital extractor, has never done anything ETHICAL or MORAL!

  • I am not surprised by ths revelation, in fact, it makes perfect sense for a country whose laws and practices favor the rich, The top 1% of earners own 35% of our total wealth, the top 20% owns 85% of the total wealth, and the remaining 80% hold 73% of the debt. Incredibly, the most affected are among the most radical when it comes to preserving tax breaks for the wealthy, even though there is no evidence that those tax breaks have contributed to job creation or investment to help solve our economic problems. In fact, those tax breaks at a time when we were engaged in two wars funded with borrowed money are one of the most important reasons for our fiscal problems. In all fairness, the super rich are investing and spending the bonanza we have given them, they are just not doing it in the USA.

  • We are slowly beginning to see Mitt for what he really is. You put a term it and I’ll bet you’re right!
    Do we really want a president the likes of Mitt Romney? No one is perfect; however Miitt takes imperfection to a much higher level. Elect him and I promise you will want to kick youself in the behind soon after the election. It won’t hurt as you probably won’t be able to afford shoes for your feet.

    • ObozoMustGo

      Fred… I hear that the bastion of wealth and freedom called Cuba is looking for new socialists. Why dont you and the other useful idiots on this site leave and go there. I hear they are quite close to achieving Utopia. I’ll take up a collection and we conservatives will pay for you leftist nutjobs to take a one way boat to Havana. Of course, as a leftist nutjob, you would expect someone else to pay your way anyway, right? After all, you are ENTITLED to benefits paid for by someone else, even if it is you last benefit… a free one-way trip!

      Bon Voyage!

      Have a nice day!

      • DurdyDawg

        Cancun is just as wanton Bozo, If you’ll just chip in a few more dollars then I think I might take you up on your generous offer which would give me enough profit to score some leaf and tickle beach bunnies on their… Thank you.

        • ObozoMustGo

          Yo Dawg! What up, brutha from anutha mutha? 🙂 🙂 I been on vacay for a couple weeks. Why I’ve been MIA….

          For you Dawg, anything. Cancun it is!!!! Especially if there’s gonna be ticklin of beach bunnies.. You’re welcome! I might join you.

          Have great day, my friend!

          • DurdyDawg

            Yeah, nice hearing your nutty chatter again (like I told my gerbil just the other day) I said, “Man”.. (I call him ‘man’).. “Man, I miss that bozo looking outfit”.. (he has yet to respond).. Anyway, welcome back ‘OB’.

      • Hey dipshit how about you go?

  • I thought there was a limit to what the company could contribute and a limit to what you could contribute. All this money was not taxed, only the rich can take advantage of our laws.

    • BDD1951

      Probably wasn’t that much when it was invested, but it probably earned interest and dividends. Probably the kind that was invested and not just draws interest. About his offshore accounts, he may have paid US taxes on the money he put there, but he is earning money on that money and not paying taxes on the income in the good old USA.

      • jarheadgene

        Only REALLY Great Insider Trading, which is illegal, could bring about that kind of wealth with that kind of investment.

  • Presto! Can he do that to our deficits? Wave a financial wand and make them go away? I doubt it. If anything he’ll be in there pitching for another war the country can’t pay for (like Bush and Cheney did) so his corporate buds can rake in $$$$ billions$. Can we say “Halliburton”? There’s nothing there for all the “Joe4 the Plumbers” out there, but like the first “Joe the POlumber” there will be those dumb enough to vote for this crook, because he advocates “small government”. In the lexicon of the radical right small government means no Social Security, MediCare or any other public program for the people.

    • We hear a lot of talk about repeal, replace, dismantle, balance the budget, reduce the debt, reduce unemployment and many other initiatives. What is lacking is specificity on how the GOP is planning to accomplish their goals or what they are planning to replace existing programs with. The biggest government outlays are Social Security (which is self sufficient and could remain solvent for decades to come by raising the contribution cap), MEDICARE, a program that uses lots of funds from the general budget thanks in part to Bush’s 2003 Part D reform (a Trojan horse designed to help the pharma and insurance industries and, ultimately, destroy a program the right wingers hate. Defense, MEDICAID and interest on the debt. We could lay off all air traffic controllers, medical researchers at the CDC, food and drug inspectors, border patrol, customs officers, NASA, INS, DEA, CIA and FBI agents, shut down all embassies and consulates and we will start be running a deficit. The GOP blames President Obama for spending $4B a day, which agencies and/or programs are they planning to shut down to balance the budget without raising taxes?

  • 113121

    Paultranlee, that is hilarious.

  • bcarreiro

    all in the recession….he would have not gained that kind of capital.

  • DurdyDawg

    It boggles the mind to realize that someone could become so inhuman because of wealth. Happens every day, I know.. But to actually witness it’s progress is almost sickening.

  • dljones

    You just can not deal with success even when it is legal. If you argued the truth, Mitt would not give you enough adverse fodder to fit in a teaspoon. Y0u have a leader that won’t lead and have lost the the conduit with reality.

  • In this article the author William D. Cohan says Romney was a part of Bain for 15 years. Yet when Romney was campaigning in the Republican Primaries he said that he was at Bain for 25 years and that Bain created a hundred thousand jobs and that qualified him to be the US President. Now he is saying he resigned from Bain in 1999, the SEC papers that he signed shows him as being as Bain through 2002 or 15 years. So was he at Bain 15 years, 18 years, or 25 years(which means he was still with Bain in 2009)? If Romney doesn’t know when he left Bain, what makes him think he knows anything about running our Country?
    There should be a law that says in order to run for the office of US President all your money has to be in banks in the United States only and that you have to show your tax returns for at least the last ten year, more if you want to. Maybe that will make most candidates show how much they are worth financially and if they made all their money legally. A law like this might even make it easier for someone that doesn’t have a million or more dollars to run for President and get someone with the skills needed to keep this Country Great.

    • LeftRightLef

      Romney is becoming more and more an embarrassment for the GOP (as if Palin during the last election wasn’t enough.)

      If I had the time Hillbilly, I’d run to help out, but I just don’t. How about you? I’d vote.

  • ReadTheFactsFirst

    I live in a really big Red State, Amarillo, Texas. Where the local news praises KKK members and have rallies every year. Our newspaper has an opinion page, but all of them criticizes the President, there’s not one single article on Republicans and Mitt with criticism. And guess what, no one here has read anything or heard anything on Bain and Mitt. They are in the dark, I got banned from writing on the Amarillo Globe News site, because I bought up Bain. But there’s guys there that can say racist things and get away with it.
    I used to work for the school district, and they were complaining about no raises for the last two year. And guess who they blamed it on, but the thing was the President had Congress passed a surplus plan to give money to states. Rick Perry took some of the surplus, but said he didn’t take any. I have to look at the national news to get the truth or I will just be in the dark and brainwashed like most of the people here.

    • LeftRightLef

      Your new calling should be a Radio Free Texas!

  • rebreb

    Are you kidding me? I guess liberals really do not understand business and free enterprise. Goverment limits apply to qualified and government insured retirment programs. Most executives have non-qulaified plans that are notfederally insured and have no limits.

    It;s like the stupidity of not knowing that once Romney left Bain it takes years due to government regulations to transfer ownership. It is NOT like a president who leaves office on Jan 20 and a new president takes over immediately.

    • LeftRightLef

      You might…MIGHT…know a lot about that small aspect of business and free enterprise (although your comment doesn’t address either) but you are a tad lacking in the fundamentals of commenting on this comment board. For example: If you wish to reply to someone’s comment, then click (with the left button of your mouse) on the word “reply.” Then go ahead and type your comment and post it. Then it will appear under the comment you were replying to. By doing that, the rest of us will know who it is you are addressing and what that person wrote to begin with. See?

      So, to put it in fewer words…I have no idea who you are addressing, or what that person may have written…no…I’m not going to read all the way back to try to figure it out, your comment just wasn’t that inspiring.

  • Mitt Romney what a retard ,,,you are not going to get his money ,,you vote for him he will buy you new shoes,,,and put you on Fox News Show with Rush ,,,lol