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Are members of congress so foolish as to think that Trump would ever sign anything that would be of benefit to the people?
You're in the wrong forum, the Politics and Other Controversies insane asylum is down the hall and to your left. Besides which it will probably pass both houses with a veto-proof majority.
Quote:
Originally Posted by FiveLoaves
The change in the age of RMD's is concerning to me. I had planned to start taking them in January 2020, the year I turn 70.5 as required. I wanted to do a monthly "paycheck" withdrawal. I don't really need the money, and would leave it alone if they raise the Age. I don't know if this Congress can move the Bill quickly through reconciliation and get the Prez to sign it (he's On Strike, you know).
I suppose I could do the Calculation on Dec 31st and hold off the start of withdrawals.....too many unknowns.
I don't think there's anything in the bill preventing you from still taking them starting in January 2020 -- only that you wouldn't be REQUIRED to do so by then.
all delaying rmd's would do is just put them on an accelerated schedule later ...that is why QLACS stink if you do them because they delay when you have to take rmd's , then go on an accelerated schedule to make up for it ..
you could end up with a nastier tax bill later and an increase in medicare premiums from the irma surcharges.
just the thing you don't want as a surviving spouse who would be filing single . while 80% of all married men die married , 80% of married women die single .
Like everything else the devil is in the details, they are recommending that 401K's offer annuities not a requirement. Most annuities I have seen are offered through another company, will these be insured by the federal government. Some of these are pretty risky.
Besides, are people willing to tie up $100K of retirement savings to get a few thousand in income. The average 401K balance at 65 is around $200K, how much income are they going to receive from that sum.
Point already made on the RMD's its just compressing the time for withdrawal and maybe the amount puts you in a slightly higher bracket.. Its not as if you lose the money anyway, you can continue to invest.
One thing for sure is that we have a retirement problem, people have planned out their lives pretty poorly and are horrible at saving.
Just another way to delay payment of taxes and to starve governments of revenue
Annuities? Much better to wait and do a rollover into an ira and set up an immediate annuity when you retire. Less of your savings will be going to fees during your preretirement years.
One thing for sure is that we have a retirement problem, people have planned out their lives pretty poorly and are horrible at saving.
"Planned"?
A friend, like some people in coastal communities whose highest aspiration is to loaf on the beach all day and pick up women, has never held an actual job. People give him things to sell. He's always had a confident air, up until recently. It's occurred to him that he's going to live long enough to retire. But on what?
I guess that not making a decision is in fact a decision and a lack of planning is still a plan.
How many people will this actually impact? It seems to me as if most people with significant 401k investments would want to retire and start taking distributions by 70 anyway. Anything that gives people more flexibility is good, but it seems that the number of people actually impacted is pretty minimal.
You're in the wrong forum, the Politics and Other Controversies insane asylum is down the hall and to your left. Besides which it will probably pass both houses with a veto-proof majority.
I don't think there's anything in the bill preventing you from still taking them starting in January 2020 -- only that you wouldn't be REQUIRED to do so by then.
https://www.wsj.com/articles/house-o...trending_now_1
"The House bill, passed by an overwhelming House majority and expected to be taken up by the Senate before it heads to President Trump’s desk, would encourage 401(k)-type plans to offer annuities, a type of insurance contract that guarantees a monthly income stream as long as a retiree lives. It also would repeal the age cap for contributing to traditional individual retirement accounts, currently 70½, and would increase the age at which savers must start taking withdrawals from 401(k)s and IRAs to 72 from 70½. Additional features benefit part-time workers, parents, home-care workers and employees at small businesses."
"The House bill, known as the Setting Every Community Up for Retirement Enhancement, or Secure Act, passed with a vote of 417-3. Senators have signaled they are keen to quickly take up the legislation, and Mr. Trump isn’t expected to oppose it.
If passed, the changes would be the most significant to retirement plans since 2006, when Congress made it easier for employers to enroll workers automatically in 401(k)-type plans and invest their money in funds that shift from stocks to bonds as people age.
Under current law, people who save money in 401(k)s or similar tax-deferred plans must begin withdrawing money—and paying tax on it—at age 70½, with annual amounts set by actuarial tables. These required distributions and associated income taxes can be a source of frustration for taxpayers who are still working or are trying to make their savings last for 30 years of retirement."
I hope this passes. Moving the RMA age to 72 would help.
"would encourage 401(k)-type plans to offer annuities," Can be done upon retirement so another waste of time.
"known as the Setting Every Community Up for Retirement Enhancement, or Secure Act," NEVER trust the name of a bill., AKA the "AFFORDABLE Care Act".
Not enough details to form an opinion.
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LOL.
