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 ...
“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 - “
Why not?
Government greed: it’s what’s for dinner.
Whatever you do, DO NOT remove the tag.
The reason is because it’s a rule change in the middle of the game.
If they get away with this, what’s to prevent means testing Social Security (more than it already is) and say that since you saved on your own, you don’t “need” SS?
Or, they decide to renege on the “promise” not to tax Roth IRA withdrawals?
I doubt it. Government employees have some of the best supplemental retirement accounts around. Many have both 457 and 403b plans..
Would current stretch ira nonspouse beneficiaries be affected or just beneficiaries after this becomes law? Lame.
“Well worth reading.”
Yes. But I agree that taxes should not be referred indefinitely.
Found my answer on forbes.
“Both versions would apply to inherited IRAs for deaths after 12/31/2019.”
https://blog.janushenderson.com/new-legislation-kill-stretch-ira/
Existing Stretch IRAs Are Grandfathered. The new rules would only apply to IRA owners who pass away after December 31, 2019. In other words, existing Stretch IRAs will be grandfathered.
Get a California King sized bed.
The gov’t types will be exempt, no doubt.
When I wrote that the Democrats (and RINOs) would be coming for your 401K and IRA money I should have added that legislators and bureaucrats would certainly find a way to exempt themselves from this blatant theft - just like with Obozo-care.
Yup.
My money, it is not reasonable for the gov’t to steal my money.
“it is not reasonable for the gov’t to steal my money.”
Your comment touches on the true nature of conservatism and just how dangerous the ongoing Communist revolution in the USA is. To a Leftist it’s not your money, it’s the government’s money, some of which they might deign to let you hang on to until they change their minds.
Consider Bernie Sanders’ response to the Trump tax cuts : “They’re looting the treasury!”. He clearly doesn’t think it’s your money.
They have some kind of rule that if a person knows he's going to die (illness, etc.) and gives his money away, they come and tax it as income.
Years back, some guy took an airplane trip and bought flight insurance. Plane crashed, he died, and the insurance company paid off. The IRS said the guy was trying to avoid taxes and it went to court. The judge said that if the guy knew he was going to die, he wouldn't have taken the flight, and threw their case out.
It just shows you what their mindset is.
Tue enough, but the IRS is only the bearer of bad news that comes from Congress, the real bad guy in this.
i suspect this will becoime a bigger issue as there will be many baby boomers/gen x retirees passing and leaving million $ plus retirement accounts that continue to grow while being untaxed.
I do agree that one thing that can cause problems in a society is too many “idle rich”, who have the money, but don’t contribute anything.
I agree, its my family’s money.
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