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 ...
“If President Trump signs the Secure Act into law...”
American Citizen Trump had a lot of his wealth confiscated by Mother Government through the years.
I’m leaning towards him NOT signing this into law.
A lot of bluff and bluster and fear-mongering by Never Trumpers at the WSJ.
the proposal as described seems more than fair to me (personal opinion) as IRAs are supposed to be for the saver’s retirement, not descendants
having said that probably-unpopular thing, I am for relaxing all the regulations on iRA’S and keeping them non-taxable permanently, no more limitations on tax-free contributions and no more taxation of whatever you do save up or take out of your IRA
we need a lot more savings, thrift in America if our economy is to continue its recovery..........a lot more.,,
and removing the restrictions and taxes on IRAs will be a quick and easy way to achieve this, imho.
How about you stop with the “Bush’s” Iraq ear?
It’s just as much my war as Bush’s, and I demand equal credit.
The vote was 417-3. This means that the Republicans are in on it too.
This can only be stopped in the Senate. Tell your Senators to vote against this bill.
I cashed in my IRA last year and bought a house. Now the house is income property.
How about you stop with the Bushs Iraq War?
Thats what Trump calls it. He also calls it one of the stupidest decisions in history of US foreign policy. I respect that you disagree. But you might want to email Trump, not me
The wars are nothing compared to the welfare state jackpots,
Congress appears to have enough votes for a veto override on this bill.
Bush’s Iraq Ear? I’ve heard of the War of Jenkin’s Ear but this is new!
https://en.wikipedia.org/wiki/War_of_Jenkins%27_Ear
$7!trillion - the cost of our Mideast wars - is nothing?
It used to be only liberals who said trillions in federal spending is no big deal.
Our rulers want poor people to dictate to. That way your to busy working on survival to revolt.
We have enough muslims now without adding one more.
"The old saying about "when the people fear the government, you have tyranny and when the government fears the people, you have freedom" comes to mind. We need the government to fear the citizenry and nothing seem to be going in that direction now.
Wait until they start ranting publicly that retirement savings has been achieved at the expense of minorities. THEY are eyeballing our savings.
I’m not praising the Republicans, whom I consider quislings in their efforts to get along with Democrats, but do you think this would see the light of day if the Democrats didn’t have the House?
The US already has socialism built into many programs (income taxes, financial aid) and there is no reason this won’t occur with retirement savings. As it is, you’ll pay taxes on some retirement income if your income is over $x dollars. They’ll simply keep lowering that amount (while pushing retirement back further and reducing the purchasing power of the money they do give out).
This system is designed to keep most people within their assigned income caste; any sector in which the laws of supply and demand push salaries higher will quickly be flooded by foreigners. Also, ObamaCare has forced plenty of people I know with the money to retire at 62 to keep working until 65 very specifically because they can’t afford the available healthcare (once they don’t have an employer plan). While Pelosi insisted ObamaCare would separate health insurance from employment, it had exactly the opposite effect - it forced people to cling to their employer plans more than ever (since the other plans were unaffordable AND unusable).
We have enough muslims now without adding one more.
Every one of our Mideast wars brings more Muslim refugees to the US. Next up: Iran.
I have a friend who said to me we need to fight Iran in order to protect Israel. Now, I support Israel big time, but Israel doesnt take the Muslim refugees from our Middle East wars. Also, our Mideast wars have weakened our economy by running up our deficits and debt. Israel doesnt need its best ally to be weakened
Fair? What? You do realize that the money in these IRA's and 401K's BELONGS to the people who own them and NOT the government. The government gets it's part when they tax your income from these funds. Passing legislation which essentially assumes any sort of control over these funds by the government is out and out theft of personal property. You call this fair?
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