Posted on 05/24/2019 9:48:22 AM PDT by rintintin
The U.S. House of Representatives on Thursday passed a bill that aims to encourage retirement Opens a New Window. savings among Americans and strengthen their long-term financial stability Opens a New Window. .
Among the provisions called for in the Setting Every Community Up for Retirement Enhancement, or Secure Act, are a couple that will increase the flexibility associated with retirement accounts. Individuals would be allowed to stash money into IRA accounts beyond the current age limit of 70 1/2. It would also delay when individuals are required to begin taking required minimum distributions to 72, from 70 1/2.
(Excerpt) Read more at foxbusiness.com ...
Overdue. Why did we have to wait for a Democratic House for this to move forward? What was Paul Ryan doing for two years?
At one time, there were concerns that the federal government would move to take over all of our 401k and IRA accounts, and “manage” and “take care of” them for us.
There are trillions of dills s worth of retirement savings out there, which Democrats would love to get their hands on.
What was Paul Ryan doing for two years?
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Obstructing Trump.
I don’t trust this bill especially from Rats who want to kill IRAs.
Siezing 401(k)/403(b) accounts would have been exceptionally unwise on the Democrats part.
You and me both brother. Need to see the details. Is this bill 19 pages or 1900 pages?
“There are trillions of dills s worth of retirement savings out there, which Democrats would love to get their hands on.”
I ask again: Why didn’t the Republican House pass this bill? Why did we have to wait for Pelosi to become speaker to get the IRA mandatory-withdrawal date extended?
Stop with the “Republicans good, Democrats bad” mantra. Both parties spend your tax dollars like tipsy sailors.
“I don’t trust this bill especially from Rats who want to kill IRAs.”
You trust the Republicans?
I wonder if this bill accelerates the mandatory withdraws (change the RMD divisors to force higher withdrawal rates)?
“What was Paul Ryan doing for two years?”
What was Paul Ryan doing for his entire life?
I hope that people talk to a CPA about stashing and/or withdrawing funds.
From the highlights in the article, these are all good proposals and it’s talking about the Democratically controlled house!!
I’m thinking the pushing back of the age of withdrawal to 72 has to do with the baby boomers and ameliorating a huge some of money being taken out of the market anytime soon and have an adverse affect on the markets. They are such a large block of people/investors that it could have an effect if they all took their investments out at once and moved it to something more secure from stock based mutual funds to bonds.
Someone in this thread was talking about how the Dems would love to get their hands on all of that 401k money (taxwise). I’ve thought that for years. Remember the “haircut” that the island of Crete implemented to solve their financial woes? That ‘haircut’ in America would be accomplished with our 401k accounts.
If you come from long lived stock, have a job that is easy and enjoyable and find yourself, like one of my friends, at the top of your game, making the most you’ve ever made and loving to work at 72 or so (I know several artists and coders who are BETTER at 75 than at 55), then why should you have to take money out and be subject to taxes when you don’t need to?
A mentor was still working as a stockbroker well into his 80’s, he chuckled that he made more money every year, and LOVED the game.
“Retirement” made, and makes sense for people who have jobs that wear them down, or don’t love what they do, or have other plans; some folks are doing what they love, and that alone can keep them young. In my direct observation.
I rather stash my money in my mattress with no withdraw penalty or wait until I reach 70 (that is IF I reach 70).
I hope you do not knock the tag off when withdrawing the funds.
Watch House Minority Leader Kevin McCarthy’s Press Conference from yesterday. Fast forward to the 13:40 mark. He explains that even when there is unanimous consent in house committees, before the bill is presented to the house, Dem leadership, with the help of lobbyists insert a “poison pill”, so that the bill will not pass in the intended form. He references the Prescription Drug Bill and the 529 Education funding bill.
https://www.youtube.com/watch?v=2oS6gB2CU7g
“Don’t really see the point when you’re already 70. You think you can take it with you?”
No but you can pass on what you don’t spend to your children. The general rule has been that the longer its tax deferred the better — at least in this climate. There is a counter argument to consider. If one believes the dems will take complete control in a few years and implement massive tax increases one may wish to consider pulling out more now. Those comparisons can be modeled.
Yes — CPA advise is always good.
Do your own due diligence, below is not investment advice and talk to your CPA...
The one thing that stood out that I didn't like was elimination of "IRA Stretch-out" which was built in during GWB's years. The way that worked was if you die and your grandkids were all 10, they would have to take a fraction of the IRA our every year based on actuarial tables something like 1/75th of their life every year based on a life expectancy of 85.
Now this bill gives them only 10 years to draw down the qualified monies. So unless it was a Roth or Roth converted and they are young, what brackets does this bump them into? What if they are about to go to College, how does this FUBAR FASFA? If the kids are real young who is going to guide them financially as a fiduciary? It is different if the kids are older, I get it, but this will do nothing but employ more attorneys and become more of a revenue stream to offset the goodies in the rest of the bill IMHO....
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