Not really illogical because the growth in the assets is tax-deferred, so you can buy and sell and never pay any taxes until you withdraw assets as income. For a lot of people, though probably not Romney, there is also the benefit of withdrawing assets and being taxed on them at a lower rate than during their working years. There's also the issue of wanting (perhaps) to have a single point of control on your long-term investments, so rather than having them in multiple accounts, a single IRA account makes sense.
Well that's an argument for any IRA investment, and I got that. My point is that Romney's IRA investments are likely not to the letter of IRS regs.
Obama was transparent about his complete lack of private sector experience in his lifetime at a time when the US was entering into the worst private sector recession since the 30's and yet Americans still elected him. In fact he's been very transparent for his disdain for private sector job creation all along (keystone, boeing plant, etc) and yet he's still tied with Romney for the 2012 election.
Ask Romney about his disdain for Dade Behring's common shareholders, and more importantly, the employees... as he took over $300MM in "dividends" out of the co. It failed a year later.
It's not tax-free, it's tax-deferred and, obviously, whatever gains you make have to stay within the IRA for them to maintain that status. "One of the most common and 100% IRS-approved ways for the active trader to avoid taxes is to trade within an IRA. Please note, I am not a CPA or Tax Advisor. These are simply a few observations from one trader to another (or would-be trader). Consult directly with your tax advisor prior to taking any action in regards to the following. All the same, this should serve as an introduction into how traders can trade tax free within an IRA structure. Short term gains which are what are produced by active trading are taxed at your regular tax rate. Long term gains on investments held for one year or more are taxed at 20%. However, if you actively trade within your IRA, not only are ALL taxes deferred, you don't have to report any gains or losses. The reason being there is no tax effect on the gains/losses so the IRS doesn't care what happens." http://www.tradingmarkets.com/.site/stocks/how_to/articles/-76585.cfm But, yes, there is a tax on "excess" contributions of 6%/year (according to irs.gov), which, if the investments are growing faster than that, is still not a deal-breaker for putting in a massive amount to take advantage of tax-deferral. Do you guys even have IRAs?
I have an IRA (no longer contribute due to asset restrictions). It's my understanding that there are defined contribution limits.