That’s why Roth IRA is capped by Congress at $7000 year contribution for 50 years plus and believe $7500 for ‘23. Love the Roth IRA and investing in otc’s!!
You have to remember, to fall into the ZERO % LONG TERM CAPITAL GAIN TAX BRACKET, you have to earn less than $44,625.00 in income (single filer) or less than $89,250.00 in income (married/joint filer) in 2023.
Long-term capital gains tax rates for the 2023 tax year
“In 2023, individual filers won't pay any capital gains tax if their total taxable income is $44,625 or less. The rate jumps to 15 percent on capital gains, if their income is $44,626 to $492,300. Above that income level the rate climbs to 20 percent”.
The IRS isn’t stupid, what it actually does is give a break to the poor, the low income earners. If you make over $492,300.00 a year in income, you still have to pay 20% LONG TERM CAPITAL GAIN TAX.
It’s one of the better laws made by Congress that benefit “the little guy”.