In the past few weeks, some politicians have created quite a buzz with proposals designed to increase taxes on the rich and redistribute those dollars to the less affluent masses. One of the ideas that has received quite a bit of publicity is raising the top marginal income tax rate from its current 37% to as much as 70% on high income recipients.

Almost certainly, this and other tax proposals will receive increasing attention as the campaigns for the 2020 Presidential Election shift into gear. As talk of raising income tax rates increases, you may also hear about economist Arthur Laffer, or more specifically, his Laffer curve illustration. Laffer is a “Supply Side” economist that suggests that there is an optimal point of taxation, that once exceeded, results in less taxes being collected due to the disincentive of working more to earn less.

I’m no economist, but a financial planning issue I recently helped a client navigate may demonstrate that investing in your retirement account is not a Laffer matter.

The issue in question is for a retirement saver that has a high-end problem, too much money in their retirement accounts. How can that be, you may ask?