Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The article is all about student loan rates set to double on Monday but a proposed fix impacts some IRAs and 401(k)s. Neither article addresses the percent of IRAs and 401(k)s that would be impacted. Any ideas?
"Senate Democrats are teeing up a battle with House Republicans over student loan rates but their efforts are being undercut by divisions within their own caucus. Last summer, they were unified in the run-up to the election. Now they must contend both with the defection of party colleagues who cut a side deal with the GOP and with a proposal floated by President Obama that mirrors the policy Republicans favor. Democrats are pushing for a one-year extension on the current interest rates, which were already extended once, in 2012. The Democratic plan, introduced by Reed and Kay Hagan (D-NC) on Thursday, would keep the interest rates at 3.4 percent through 2013 and pay for this by closing a loophole in the tax code to shorten the length of time that tax payments can be deferred on certain inherited IRAs and 401(k)s. )"
Please update the thread title to include the word "inherited" instead of the word "some". As it is now, the thread title is misleading, the vagueness attracting more attention to this issue than it warrants, given that we know the nature of "some" and can specify it. Thanks.
There is likely to only be a temporary fix go thru. IRA and 410K isn't likely to be in final bill which Reid and Hagen know it. its spin for the liberal base only. Reid is losing his support as he is failing time after time to reach a compromise that effects his Democratic base. Obama needs to get out from under Berannke shadow in leadership on the economy. Reid needs to take a page form Tip O Neil dealing with Reagan or Gingrich dealing with Clinton and Obama from both Reagan and Clinton. politics and success is always the art of compromise but it seem they both may have gone to far and losss that chance as being seen as a partner in compromise and stuck with the elections has consequences they started with but turned on them.
The article is all about student loan rates set to double on Monday but a proposed fix impacts some IRAs and 401(k)s. Neither article addresses the percent of IRAs and 401(k)s that would be impacted. Any ideas?
"Senate Democrats are teeing up a battle with House Republicans over student loan rates but their efforts are being undercut by divisions within their own caucus. Last summer, they were unified in the run-up to the election. Now they must contend both with the defection of party colleagues who cut a side deal with the GOP and with a proposal floated by President Obama that mirrors the policy Republicans favor. Democrats are pushing for a one-year extension on the current interest rates, which were already extended once, in 2012. The Democratic plan, introduced by Reed and Kay Hagan (D-NC) on Thursday, would keep the interest rates at 3.4 percent through 2013 and pay for this by closing a loophole in the tax code to shorten the length of time that tax payments can be deferred on certain inherited IRAs and 401(k)s. )"
Once again a great thread and post Laura. Many with IRA's and 401's have the goal of passing them on to their children and in fact have their children as designated primary or secondary beneficiaries. One of the things often mentioned is that there are only few sizable pools of money left in our society and a some of them are associated with individuals retirement. Most notably are pensions ( well over 2 trillion) and our personal retirement accounts. It is reasonable to believe that there are those who wish to use that pool of money to fund the needs of government and all to often another individual. So thanks for the heads up and those who are also concerned may well also say thank you and others may share another thought but I thank you and shall try to find some more info to supplement your post.
In case there are folks not fully familiar with current laws regarding inherited IRA's and how they can help your children fund their retirement or perhaps their college. There have been efforts to force distribution from them over five years thus bringing in a heftier tax bill at limited life time appreciation of the account.
Inherited individual retirement accounts made news earlier this year when the Senate Finance Committee proposed to make heirs empty them within five years of the benefactor's death.
The measure, which was abandoned shortly thereafter, would have upended a system that is highly advantageous to families. Under current rules, heirs get to stretch withdrawals from an inherited IRA across their own life expectancies, meaning the assets could potentially increase in value, tax-deferred, for decades.
Thanks to Laura for highlighting this for all of us. Some of us may now be motivated to weigh in with our elected officials on a topic we might not known could impact us. Now we know and regardless of our perspective we are better informed.
TY Laura.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,706 posts, read 58,042,598 times
Reputation: 46172
I wouldn't mind inheriting some of the wealth my kids acquired from their student loan proceeds.
As usual, the government is fixated on redistributing wealth and aligning all to THEIR measure of success, rather than improving the very system they have created (USA EDU) that is pathetic by any std of the modern age. (and our competition).
Just imagine if in the USA, the college students actually were preparing for a career / beneficial contribution to USA economy and society. AFAIK, the USA is amoungst the few elite that can pour K-22 EDU into a kid that has no clue they will like, can do, or even if their career of choice will exist !! As an engineer, I am not impressed that USA has a statistic that we lose 75% of our FEW science and engineering grads to other career fields within 5 yrs of graduation.
I'm glad I served a 'trades' apprenticeship along with my degrees, to add some substance to my knowledge. It is nice when I hired international engineering grads who KNEW the tasks and software of my company cuz they had been ENGAGED in working specifically on our equipment and processes the last 2 yrs of college. Graduate one day, productive the next. In USA... graduate one day... What to do the next? (Too often not associated with the EDU).
Student loans? How many have been put to good value? I hope a LOT.
If the GOV wants to add some value to the loans WE are paying for... They should consider enhancing the debt forgivness programs. There are a lot of Gov jobs that could be done for free by our excellent grads who could add a shift everyday after their 'real job'. Many of us did that to PAY our own way through college, including my own kids who are fairly recent grads.
Please update the thread title to include the word "inherited" instead of the word "some". As it is now, the thread title is misleading, the vagueness attracting more attention to this issue than it warrants, given that we know the nature of "some" and can specify it. Thanks.
Awwww, does your IP charge you by the number of threads you open? I'll have to get right on that.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
As an engineer, I am not impressed that USA has a statistic that we lose 75% of our FEW science and engineering grads to other career fields within 5 yrs of graduation.
