Posted on 07/15/2019 10:21:23 AM PDT by DFG
One of the perils of being well-off is the constant risk that the federal government and/or your friendly state and local tax collectors will figure out new and different ways to snatch more of your wealth. Especially wealth that you earned the old-fashioned way: by inheriting it. To raise your paranoia to the appropriate level, here are two new things to worry about.
Few noticed when the House of Representatives in May overwhelming passed the imaginatively named “Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.” The vote was 417-3. Senate passage was thought to be a mere formality — until Senator Ted Cruz (R-Texas) announced opposition, because the bill no longer includes a provision that would allow tax-free Section 529 college savings account withdrawals to cover homeschooling costs.
But with such near-unanimous support, you would think the SECURE Act is basically nothing but good news for anybody and everybody. Right? Wrong. Here’s the story.
(Excerpt) Read more at marketwatch.com ...
It’s a minor if annoying tweak to existing tax law.
The author is acting as if we’re on the brink of the end of civilization.
There are bigger fish to fry frankly.
Well worth reading.
It’s also worth noting that if the Democrats ever manage to take control over both the legislative and executive branches of our government they will promptly seize all 401K and IRA accounts.
They’ll think of some clever way to word it, some financial trickery to fool anyone not paying attention into thinking they still own their accounts, but seize them they will.
America is $22 Trillion in debt, and growing. Big Government at all levels, the deep state and 1000 Leftist social-engineering schemes and their cronies will never limit themselves by their own accord.
So money for it will have to come from somewhere, and that “somewhere” is YOU.
My matress only holds $2 mil
the House of Representatives in May overwhelming passed the imaginatively named “Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.” ... 417-3... the bill no longer includes a provision that would allow tax-free Section 529 college savings account withdrawals to cover homeschooling costs.
Thanks DFG.
It isn’t the IRS that’s doing the eyeing, it’s the Democratic Congress
Don’t worry, even if your mattress only holds 2K, the government will find a way to take it. This law must not go through, because it’s just setting the stage for confiscation of inherited assets.
It is the primary raison d’etre of government to seek the money of the governed. All other duties, functions and operations are secondary, and an excuse to serve the primary reason.
It’ll go through. It’s just a tweak of an existing law.
They've been trial ballooning this for years. I give them another ten, at the outside. And it won't just be Democrats.
They will come for your 401k type accounts, too.
Dims always give feel-good names to their power grabs. Affordable, equal, secure, fairness, unicorns. Run from these bills.
The confiscation of inherited assets already exists. It's called the "Estate Tax".
The estate tax exemption for 2019 is $11.4 million. If an estate is valued over $11.4 million, the amount over is taxed (confiscated) at 40%.
Really, they really hyped the ‘outrage’ of this change - I see it as perfectly reasonable tweak. You get to save for YOUR (and your SPOUSES) retirement by using tax advantaged accounts.
If you die before you can use it, why should some 20 year old kid (for example), should be able to push of the taxes for another 50-60 years - that is not what a ‘retirement’ account is for.
My wife inherited a smallish amount from her parents when they both died, and while we are taking out the minimum, which will stretch it out for 30+ years, I wouldn’t have been the least bit miffed if I had to do it in the new 10 years - its basically found money anway, taxes will be due anyway - that is the deal you make when you use tax-advantaged accounts.
“I see it as perfectly reasonable tweak. “
Is it a “reasonable tweak” or is it the camel’s nose just slightly peaking under the tent? (No harm in that, is there?)
This reminds me of all the “reasonable tweaks” that have been made to gun laws over the years - banning machine guns, banning bump stocks - now possibly banning silencers? This stuff goes in only one direction. Hyped outrage is our only hope of slowing it down.
I’ve been keeping up a thread that has quite a few articles on this issue. I’m following it closely, as it would affect my RMD date.
http://www.freerepublic.com/focus/f-news/3738668/posts
Lawmakers Push New Retirement Legislation (RMD @ 72 instead of 70 1/2)
The Wall Street Journal ^ | March 29, 2019 | Anne Tergesen and Richard Rubin
Government doesn’t just seek it. It steals it. Legalized plunder.
Check the comments section.
Opinion: 401(k) retirees won’t buy annuities unless they are better designed
Published: July 15, 2019 12:18 p.m. ET
By Robert C. Pozen
https://en.wikipedia.org/wiki/Robert_Pozen
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