Posted on 10/25/2017 11:11:23 AM PDT by be-baw
The top Republican tax writer in the House said the GOP tax proposal that Republicans plan to unveil next week could affect retirement account rules and how Americans save money. The plan could put him at odds with President Trump, who has promised not to touch 401(k) retirement accounts.
“We want more Americans to save more, we want them to save earlier in their lives,” House Ways and Means Chairman Kevin Brady, R-Texas, said at a breakfast with reporters Wednesday.
*snip*
[Trump] reaffirmed his position Wednesday, telling reporters that leaving the retirement savings plans intact is "very important."
(Excerpt) Read more at abcnews.go.com ...
If back channel warnings to Congress aren’t working, Trump needs to publicly state that he’ll veto any bill that hurts retirement savings plans.
OTOH, since this is wapo, et. al. reporting, their 401k “news” is probably just fake pot stirring ...
“They’re going to call it “tax cuts for the rich” no matter what. “
What about the fact it raises taxes on the middle class?
I would assume this to be voluntary.
“That may be LS, but the time to address these things, is when we have a bill on the table.”
From the time the plan is public until it’s voted on will be less than 24hrs.
And it will be 1500 pages, easy.
President Trump isn’t vetoing any bill that comes to him. He needs to sign a bill of some kind at some point.
“controlled 401K rollover to Roth IRA would work for people”
You can do that now.
In fact, if you quit or change jobs you can roll all of it to a self-directed IRA without paying any taxes or penalties.
Seems to me we are too willing to criticize plans based on what the Leftist media spoon feeds us.
The same folks that published the Russian Dossier, is our go-to source for attacking.
Folks get all angry, and if not careful, trashing Trump for something that there is no sound basis for attacking him over.
You need to learn your terms - SSI has nothing to do with Social Security that you and your employer have paid into your earnings record. It stands for Supplemental Security Income and is for those with no earnings record due circumstances like born with a birth defect, mental defect, etc,. IOW, never were going to be able to support themselves.
I thought rolling a “quit job” 401K (pre tax) to a Roth meant paying income taxes on it now. I’m not an expert on these things :-) ... I just know enough to save like I should :-).
What I’m suggesting is a low, fixed tax penalty to roll money in an existing 401K (or similar retirement plan) into a new vehicle that is taxed at a flat rate as money from the 401K goes in, but matures like a Roth with no dependence on current employer.
I think what the swamp things are looking for is cash now to cover their tax cuts. Anyone with a brain cell knows that there MUST be spending cuts, but we are dealing with idiots that are focused on the “now”. Let’s use that to our advantage.
What I’m proposing is that they can “tax” 401K money now, but the taxed amount is immediately placed into a Roth-like fund that matures tax free. So, assuming I live to retire (not sure about that as liberals certainly screw up my vitals :-)), I can withdraw that pre-taxed money tax free.
Let’s say we’re given an option to do this “rollover” on, I don’t know, up to $30K this year and the tax on this cash is 15% ... $4.5K goes to Uncle Sam immediately. The remaining $25.5K goes to my new Roth-like IRA.
If there’s $5T in retirement plans like 401Ks IIRC ... that means there is $750B in cash they could get “early” (obviously, you don’t want all of this tapped across one year since they’re spend crazy idiots).
They’ll be able to claim their tax cuts are paid for, and we get a discount on taxes on cash we earned. The younger people are, the better it will be for them in the long run. Older people get a small break on taxes on their 401Ks ... everyone wins (SO LONG AS SPENDING CUTS COME ONCE SOME SANITY IS RESTORED IN CONGRESS!!!!).
Also, I’m open to any proposed flat tax percentage so long as the number is less than 15% :-).
Thanks. Yes, you can rollover without penalty. You can’t convert without getting taxed.
Well, he simply can’t sign one that is all DACA, no everify, hits retirement accounts, etc.
I believe he wants to sign a bill, but I’m pretty sure he’s not nuts.
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