Skip to comments.Congress Is Coming for Your IRA
Posted on 07/20/2019 12:54:26 PM PDT by BradtotheBone
Like grave robbers opening King Tuts tomb, Congress cant wait to get its hands on Americas retirement-account assets. The House passed the Setting Every Community Up for Retirement Enhancement Act, known by the acronym Secure, in May. The vote was 417-3. The Secure Act is widely expected to pass the Senate by unanimous consent. While ostensibly helping Americans save for retirement, the bill would actually reduce the value of all retirement savings plans: individual retirement accounts, 401(k)s, Roth IRAs, the works.
The main problem with the Secure Act is that it eliminates the stretch IRA, the fixed star in the financial-planning firmament since 1999. The stretch IRA lets savers leave their retirement accounts to children, grandchildren or other beneficiaries. Under current rules, the recipients can parcel out the required minimum distributions from the accounts over the course of their actuarial lifetimes. Payouts tend to be relatively small for children but grow in size over the decades until the inherited IRA might comfortably provide for the childs retirement through the power of tax-deferred compounding. A parent could die with the knowledge that, whatever vicissitudes their children might experience in life, they wont have to worry about retirement.
Congress wants to kill this. The Secure Act gives nonspouse beneficiaries 10 years to pull out all the money in an IRA. The effect would be to make more of an IRA subject to higher taxes sooner, as distributions are made in supersize chunks. As much as one-third more of an inherited IRA would get gobbled up by taxes than under current rules. When the Tax Cuts and Jobs Act expires in 2025, taxes will rise across the board. If President Trump signs the Secure Act into law, the stage will be set for a taxpocalypse sometime in the next decade.
(Excerpt) Read more at wsj.com ...
Everything the government does means the exact opposite of what it says. Here, they start with a cute acronym, but their underlying purpose is to rape you financially.
Making a long-term bet on the taxing policy of the federal government is always a losing proposition. There was no possible way that the feds would watch the pile of money continue to grow in IRA’s and 401k’s without deciding they have to get their hands on it.
The DNC is a domain of scum, perverts and conmen ... what happens when lawyers iuntellectually interbreed with communists and socialists ... on steroids.
A Swedish friend of mine who was working here about twenty years ago had about $80K taken from his retirement fund by the socialist goverment because they were running short on money.
Been saying that myself since at least the 90s.
In fact I’ve been saying that the biggest advantage to a Roth is because you’ve already paid tax on the principal what they’re left with trying to eleminate the promise not to tax the interest and whatever penalties they may choose to apply (though ex post facto are forbidden what does that mean to the trash on the Left?).
How Marxist of them.
Well at least I can live off my Social Security.
Those Freepers who have been cheering our Mideast wars for 15 years - and who now want war with Iran - should not complain about taxes. War costs money, just as much as any other government program
Next time you ask AOC what her green new deal will cost, try to be consistent and also ask what our wars, including the next one, vs Iran, will cost
Setting Conditions Retroactively Extracting Wealth
You saw it here first.
Bushs Iraq War has cost $4 trillion by crediible estimates
Where did you think the money would come from?
If you support preemptive wars , including the Iraq War, dont complain about taxes
They never give without taking, and expanding their control over you. There are no free things from those bastards.
How can we make them follow the rules they impose on us?
Nice dodge ... but are Republicans doing this?
Of course while we’re at it the Left has pissed off more still on their unconstitutional social programs and lusting for more Arbitrary government ... wars can at least be lawful if properly declared (that of course raises a separate bugaboo).
The millionaires in Congress don’t want us piss-ants to get ahead. They’ve climbed the ladder of financial success and now are pulling it up behind them.
Last night on Fox News, Tucker was arguing against a war with Iran. Then Hannitys show came on and he was taking a much more aggressive tone, reminding me of his support for Bushs invasion of Iraq
If we have a war against Iran, get ready to hand over most of your IRA, because the feds are deep in debt so the money for a new war will have to come from new taxes
Nice. Very nice.
SCREW others ... it’s what Congress does best.
The millionaires in Congress dont want us piss-ants to get ahead
No, they need money to pay for their wars
wars can at least be lawful if properly declared (that of course raises a separate bugaboo).
Whether lawful or not, war costs money
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