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RMDs are now 72 not 70.5

Old 02-25-2020, 05:44 PM
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Default RMDs are now 72 not 70.5

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 SECURE act changes RMDs, contributions age limit repealed for IRAs, and 529s can be used to repay student loans.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/forbesf.../#658960813cb4
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Old 02-25-2020, 06:03 PM
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Originally Posted by notEnuf View Post
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 SECURE act changes RMDs, contributions age limit repealed for IRAs, and 529s can be used to repay student loans.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/forbesf.../#658960813cb4

Another big change, your kids have 10 years to "drain" their inherited IRA. Huge tax consequences for them. Thanks Congress.
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Old 02-25-2020, 06:33 PM
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Originally Posted by Hank Kingsley View Post
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.
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Old 02-25-2020, 06:44 PM
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Originally Posted by TED74 View Post
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!!

Secondly, this is another reason why the Roth IRA is so useful.
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Old 02-25-2020, 07:04 PM
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Originally Posted by TED74 View Post
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.
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Old 02-25-2020, 07:35 PM
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Originally Posted by Baradium View Post
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.
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Old 02-26-2020, 04:49 AM
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Originally Posted by TED74 View Post
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?
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Old 02-26-2020, 05:35 AM
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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.
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Old 02-26-2020, 08:23 AM
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Originally Posted by 3 green View Post
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.
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Old 02-26-2020, 08:48 AM
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Originally Posted by 3 green View Post
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?
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