Posted on 06/14/2019 6:28:50 AM PDT by Diana in Wisconsin
The House of Representatives recently passed a bill that may complicate retirement planning options for Americans.
The House passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 on May 23. If enacted into law, it could be tricky for Americans who are not financially savvy investors.
Some of the changes could benefit consumers: The law encourages more small employers to offer 401(k) plans and raises the age for required minimum distributions (RMDs) from retirement accounts to 72 from 70.5, a nod to longer life expectancies and later retirements.
However, there are some changes that consumers should be wary of, experts say.
For example, one change in the law would shorten the amount of time that someone who inherits an Individual Retirement Account (IRA) can hold onto the funds, potentially causing them to lose money.
"If you inherited my IRA — before I'd be able to stretch the distribution over your lifetime, which is more time for dollars to grow tax deferred. Now you have to drain that inherited IRA over 10 years, which gives you less time to grow the money on a tax-deferred basis," Dave O’Brien, chair elect of the National Association of Personal Financial Advisors (NAPFA), told ABC News.
Another change that American workers should be wary of, according to consumer advocates, is adding annuities — complex financial tools offered by insurance companies — to 401(k) plans.
*SNIP*
(Excerpt) Read more at msn.com ...
Beau inherited some $ from his Mom (split 5 ways with his siblings; not much) when she passed. I guess letting that GROW until he needs it later in life may not be an option any longer if this bill isn't killed.
Do any FReepers HAVE Annuities? Experiences?
Might be better to invest in brass, lead, copper, and gunpowder.
Got to “Setting Every Community Up for Retirement Enhancement (SECURE)”
I already don’t like it.
Warm socks and sturdy boots. Can opener. Canned goods. ;)
So it’s another Death Tax, then.
Has to be passed by the Senate and signed by the president.
Highly unlikely.
With the ‘Rats it’s ALWAYS a ‘set up’ toward lining their own pockets. :(
Hurray! The government is going to SECURE our future.
Our future will be as SECURE as our health care is affordable. Great and glorious government can do no wrong.
I agree, but we still need to keep our eye on these thieves!
The writer doesn't know English.......or math........
Got to “the House of Representatives”.
I already don’t like it.
I don’t trust the government. This is why my retirement is based on owning real estate free and clear, owning the “stuff” I need free and clear (zero debt) and Precious metals - that I physically possess. And Social Security and a couple of small pensions (only gets me a few hundred a month).
And the real estate is in a state with virtually non-existent property tax ($250 a year on 32 acres and a home), but high tax on income (which I won’t have) and no tax on Social Security benefits.
The only rules they can really change that would have much effect on me are SS rules. and those are pretty difficult for them to change.
Corporate greed pales in comparison to government greed.
Exactly right. The evil in a Congressional act is directly proportional to the cuteness of the name. That is a truism you can take to the bank.
How many interns do they have assigned to The Nonpartisan Committee for Concocting Cute Act Names?
These Rats need to leave my retirement funds alone.
Disregard previous post.....just woke up.................
The first part about extending the RMD from 70.5 to 72 was actually suggested by President Trump a few months ago...
What: SECURE us?? ... AGAIN?
Read it again.
“Raises the age … to 72 from 70.5”
I know.
I just woke up......................but not completely...............
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.