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House Democrats propose retirement changes

Old 09-13-2021, 11:34 AM
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Default House Democrats propose retirement changes

https://www.cnbc.com/2021/09/13/hous...e-wealthy.html

Basically, this Democrat-proposed legislation will neuter tax-advantaged retirement vehicles frequently used by professional pilots such as backdoor and mega-backdoor Roth conversions, and place annual RMDs on combined IRA/Roth/DC plans valued over $10M (which may be a factor for some people).

Here's a white paper of the proposed legislation, designed to help "make the tax code more equitable" and help pay for Democrats' $3.5T spending wishlist
https://waysandmeans.house.gov/sites...btitleISxS.pdf
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Old 09-13-2021, 11:44 AM
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Sheesh. Once again, let penalize those that know how to manage money using the rules that exist to pay for the idiots that don’t.
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Old 09-13-2021, 05:56 PM
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Originally Posted by BoilerUP View Post
https://www.cnbc.com/2021/09/13/hous...e-wealthy.html

Basically, this Democrat-proposed legislation will neuter tax-advantaged retirement vehicles frequently used by professional pilots such as backdoor and mega-backdoor Roth conversions, and place annual RMDs on combined IRA/Roth/DC plans valued over $10M (which may be a factor for some people).

Here's a white paper of the proposed legislation, designed to help "make the tax code more equitable" and help pay for Democrats' $3.5T spending wishlist
https://waysandmeans.house.gov/sites...btitleISxS.pdf
The “good news” is that the Democrat senator from West Virginia and the Democrat senator from Arizona do not appear to be on board. That’s a slim twig that a lot of our ability to grow generational wealth hangs by. The last thing I need is to be forced to liquidate my retirement investments at an age when my biggest expenses will be paying a nurse to spoon feed me and wipe my behind. They are destroying the social contract that said that saving for the future was beneficial for society and replacing it with a system that encourages the masses to blow it all on bread and circuses, since the government will “care” for you in old age.
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Old 09-13-2021, 06:02 PM
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Originally Posted by tnkrdrvr View Post
The “good news” is that the Democrat senator from West Virginia and the Democrat senator from Arizona do not appear to be on board. That’s a slim twig that a lot of our ability to grow generational wealth hangs by. The last thing I need is to be forced to liquidate my retirement investments at an age when my biggest expenses will be paying a nurse to spoon feed me and wipe my behind. They are destroying the social contract that said that saving for the future was beneficial for society and replacing it with a system that encourages the masses to blow it all on bread and circuses, since the government will “care” for you in old age.

It's all about the EGO (Embedded Growth Obligation).


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Old 09-13-2021, 09:28 PM
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Originally Posted by tnkrdrvr View Post
The “good news” is that the Democrat senator from West Virginia and the Democrat senator from Arizona do not appear to be on board. That’s a slim twig that a lot of our ability to grow generational wealth hangs by. The last thing I need is to be forced to liquidate my retirement investments at an age when my biggest expenses will be paying a nurse to spoon feed me and wipe my behind. They are destroying the social contract that said that saving for the future was beneficial for society and replacing it with a system that encourages the masses to blow it all on bread and circuses, since the government will “care” for you in old age.
Sen. Joe Manchin from West Virginia has said he opposes the $3.5T bill. Not saying some small piece more acceptable wouldn’t pass. But he has told the majority leader in no uncertain terms he will not vote for the bill. He is running for re-election in 2022 in a state Donald Trump won with 69% of the vote. So, clearly, he will not want to go too far to alienate his heavily Republican voter base. He wants to win re-election, otherwise a Republican would win that seat. Just some perspective.

A separate very weird wrinkle. If President Joe Biden were to resign or be removed by the 25th amendment, Vice President Kamala Harris would become President. She would want to name a replacement Vice President. It would have to be confirmed by simple majorities of both Bodies in the Capitol. Since the Senate is 50-50 with no Vice President to break the tie, a new Vice President would not be confirmed. With the political animosity, on both sides, I do not see a Republican voting to confirm a leftist Democrat. It would have to be somebody very middle of the road. Those are hard to come by these days. If no confirmation happens, the Vice President seat will remain vacant.

But, some have asked, doesn’t the President Pro Tempore of the Senate beak the tie? No, that is Sen. Patrick Leahy (D-VT). He already voted in the 50-50 tie. So, in essence, a resignation of President Biden means the Democrats no longer will be able to pass legislation by straight party lines. Interesting, isn’t it??
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Old 09-14-2021, 10:13 AM
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Thank you ALPA cousins.
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