Originally Posted by La literatura
Do you put $5000 each year into a Roth IRA? It's tax deductible, can be tax-free when matured, and is a perfect example of a "loophole" that incentivizes people to build a nest egg for their retirement.
Imagine if you could save as much of your income as you wanted to without being taxed on it. You know, because you're the one who made the money. And then imagine if you could put aside a substantial amount because you knew that you could take it back out without a "penalty" if something unexpected happened, or if you had a large purchase that you wanted to save for.