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View Full Version : RMDs are now 72 not 70.5


notEnuf
02-25-2020, 05:44 PM
Fidelity has an article on our 401k site. SECURE act changes RMDs, contributions age limit repealed for IRAs, and 529s can be used to repay student loans.

https://www.forbes.com/sites/forbesfinancecouncil/2020/02/13/how-the-secure-act-affects-you/#658960813cb4


Hank Kingsley
02-25-2020, 06:03 PM
Fidelity has an article on our 401k site. SECURE act changes RMDs, contributions age limit repealed for IRAs, and 529s can be used to repay student loans.

https://www.forbes.com/sites/forbesfinancecouncil/2020/02/13/how-the-secure-act-affects-you/#658960813cb4


Another big change, your kids have 10 years to "drain" their inherited IRA. Huge tax consequences for them. Thanks Congress.

TED74
02-25-2020, 06:33 PM
Another big change, your kids have 10 years to "drain" their inherited IRA. Huge tax consequences for them. Thanks Congress.

Yup, more taxes on middle America. This provision is estimated to generate $15B in revenue. That'll pay for about 750 miles of wall... isn't that what "we wanted"? Luckily the top 400 Americans are paying a lower tax rate than the middle class for the first time in our nation's history.

To clarify, minor kids' 10-year clock doesn't start running until they hit 18, spouses aren't affected, and most sibling benefactors aren't affected either.


m3113n1a1
02-25-2020, 06:44 PM
Yup, more taxes on middle America. This provision is estimated to generate $15B in revenue. That'll pay for about 750 miles of wall... isn't that what "we wanted"? Luckily the top 400 Americans are paying a lower tax rate than the middle class for the first time in our nation's history.

To clarify, minor kids' 10-year clock doesn't start running until they hit 18, spouses aren't affected, and most sibling benefactors aren't affected either.

Firstly, Mexico is paying for the wall!! :rolleyes:

Secondly, this is another reason why the Roth IRA is so useful.

Baradium
02-25-2020, 07:04 PM
Yup, more taxes on middle America. This provision is estimated to generate $15B in revenue. That'll pay for about 750 miles of wall... isn't that what "we wanted"? Luckily the top 400 Americans are paying a lower tax rate than the middle class for the first time in our nation's history.

To clarify, minor kids' 10-year clock doesn't start running until they hit 18, spouses aren't affected, and most sibling benefactors aren't affected either.

Two things, first the tax write-offs have existed for a very long time, so this isn't true. Second, you are not considered middle class by politicians if you are at a major airline or a CA at most regionals.

forgot to bid
02-25-2020, 07:35 PM
Two things, first the tax write-offs have existed for a very long time, so this isn't true. Second, you are not considered middle class by politicians if you are at a major airline or a CA at most regionals.

And wealthy Americans are always going to pay less taxes. Taxes are for those stuck making a salary and don't employ anyone. Wealthy people pay themselves $1 salaries for a reason.

Hank Kingsley
02-26-2020, 04:49 AM
Yup, more taxes on middle America. This provision is estimated to generate $15B in revenue. That'll pay for about 750 miles of wall... isn't that what "we wanted"? Luckily the top 400 Americans are paying a lower tax rate than the middle class for the first time in our nation's history.

To clarify, minor kids' 10-year clock doesn't start running until they hit 18, spouses aren't affected, and most sibling benefactors aren't affected either.

Didn't hear about this one coming. I would imagine, most people inherit these things in there 40's to 50's, peak earning years. Add the RMD to your highest earning years, highest tax bracket. Not a conspiracy theorist, but this is the first bite of the apple. There will be more attempts to get your wealth accumulated in IRAs, and especially 401s, etc.

Why did Willie Sutton rob banks?

3 green
02-26-2020, 05:35 AM
I predict in the near future that they raise taxes on 401k withdrawals based on how much you have in your 401k or based on how much you withdraw. I see no way to avoid this with the huge debt problem in the USA. Go after people who have money in order to pay off some debt...In other words, punish responsible people who have saved money.

gloopy
02-26-2020, 08:23 AM
I predict in the near future that they raise taxes on 401k withdrawals based on how much you have in your 401k or based on how much you withdraw. I see no way to avoid this with the huge debt problem in the USA. Go after people who have money in order to pay off some debt...In other words, punish responsible people who have saved money.

The coming money grab(s) will be staggering. Especially for us "rich" airline pilots, which is absolutely what we are to well over 50%+1 in our "democracy". It won't be used to "pay off debt" though. Far from it. It will be for direct transfer entitlements to every "citizen of the world" that wants to come here and take it.

Good to see them expanding the 529 scam though. Big Ed has probably already started raising prices more than the savvy savings like they always do. Suckers born every minute and all that.

dbrownie
02-26-2020, 08:48 AM
I predict in the near future that they raise taxes on 401k withdrawals based on how much you have in your 401k or based on how much you withdraw. I see no way to avoid this with the huge debt problem in the USA. Go after people who have money in order to pay off some debt...In other words, punish responsible people who have saved money.

The 401k will be a huge target, do you really think that money won’t be grabbed?

3 green
02-26-2020, 08:51 AM
The 401k will be a huge target, do you really think that money won’t be grabbed?

Did you read my post? I said they will go after our 401k money.

Hank Kingsley
02-26-2020, 10:53 AM
Did you read my post? I said they will go after our 401k money.

Then our guns and "precious bodily fluids".

Iceberg
02-26-2020, 10:56 AM
Then our guns and "precious bodily fluids".

Ha! Jokes on them, my guns are scrawny and I got the snip. Government overreach blocked.

Bluewaffle
02-26-2020, 11:12 AM
The coming money grab(s) will be staggering. Especially for us "rich" airline pilots, which is absolutely what we are to well over 50%+1 in our "democracy". It won't be used to "pay off debt" though. Far from it. It will be for direct transfer entitlements to every "citizen of the world" that wants to come here and take it.

Good to see them expanding the 529 scam though. Big Ed has probably already started raising prices more than the savvy savings like they always do. Suckers born every minute and all that.

just curious what makes you think the 529 think is a “scam”?

full of luv
02-26-2020, 01:48 PM
I predict in the near future that they raise taxes on 401k withdrawals based on how much you have in your 401k or based on how much you withdraw. I see no way to avoid this with the huge debt problem in the USA. Go after people who have money in order to pay off some debt...In other words, punish responsible people who have saved money.

It's called the "wealth tax" and if you get the right mix in DC you can bet your britches it will be employed. First on multi-millionaires but when they figure out that doesn't make much revenue it will expand until everyone is paying a 2% tax on all accumulated wealth (tax deferred, home equity, savings etc) so that those who haven't saved can be joined by those who did and had it "shared"....

gloopy
02-26-2020, 05:47 PM
just curious what makes you think the 529 think is a “scam”?

Its but one of many artificial market programs that causes malinvestment. It makes it easier for Big Ed to get more and more money. But instantly, so can everyone else. It artificially increases the supply of money for a given sector which creates its own demand for more money in that sector. Look at how universities have increased costs in the last few decades that we've thrown all this money at the problem. That's why they're hiring like 100 fake job administrators for every actual professor and greenlighting ridiculous building projects etc. All of these programs cause prices to rise, which creates the phony need that we need more programs. And high school children, hodwinked by their parents, are making 6 figure decisions based on everything except reality. We've dumped so much money into it which has caused prices to rise so much so fast that now the answer is supposedly to make it free.