If you use a traditional IRA for non-deductible contributions, the earnings will be tax when they are withdrawn. With a Roth IRA, the earnings should never be taxed, but there are some limitations. Consult your tax advisor for a complete explanation. What has changed is the maximum amount of wages subject to the Social Security tax. There is no wage limit for the Medicare tax.
Employers also pay an equal amount of tax for each employee.
Initial public offerings are risky. Usually the company has a limited history of results and in recent years, the stock prices of many IPOs have risen sharply initially only to fall dramatically later on. Be cautious when considering this type of investment. The income tax issues associated with mutual funds can be confusing. Under the income tax law, mutual funds make distributions of dividends and interest that they receive.