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Old 08-03-2019, 08:35 PM   #641
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Define many. If it is only 5%, does that somehow make it invalid? Your argument is essentially that it is OK to change it impacting existing savers because somehow not enough people had it as their primary reason for utilizing an tIRA or traditional 401(k).

If the government wants to change the rules on new contributions, I am fine with that...I will simply stop contributing. But I am stuck(ed) (I was going to use a different word) because I was foolish enough to trust them to stay true to the rules that enticed me to contribute heavily to traditional 401(k) plans.
+1. Could not agree more. If I knew, 30+ years ago, the rules would change.
I would have invested differently. My decision to invest in IRA's was
based on the rules promoted by Congress.
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Old 08-03-2019, 08:39 PM   #642
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Is this proposed law for limiting the stretch only for IRA's or does it include 401K's too?
Good question. Logically since 401K's can be rolled over into IRA, I think it would apply.
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Old 08-03-2019, 08:48 PM   #643
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My view, IRA's introduced 30+ years ago, with detailed rules. I followed the rules. Today, IRA net worth, substantial. Being forced to liquidate in 5 or 10 years, (depending on house/senate version), extremely unfair.

Just glad, I'm not alone in my views,
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+1. Could not agree more. If I knew, 30+ years ago, the rules would change.
I would have invested differently. My decision to invest in IRA's was
based on the rules promoted by Congress.
The stretch IRA was based on a 1999 Private Letter Ruling... only 20 years ago... the rule that is changing that you are so upset about... that is so "extremely unfair"... didn't even exist 30+ years ago when you made your decision to invest in IRAs so you couldn't have banked on it when you decided to invest in an IRA.

Thou doth protest too much.

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,,, The Multi Generational “Stretch IRA” concept is not brand new. It has been around since 1999 when the Internal Revenue Service, in a Private Letter Ruling, stated that a man who inherited his mother’s seven-figure IRA could name his own beneficiaries. ...
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Old 08-03-2019, 11:12 PM   #644
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+1. Could not agree more. If I knew, 30+ years ago, the rules would change[,] I would have invested differently. My decision to invest in IRA's was based on the rules promoted by Congress.
My family would likely be affected adversely by this proposed legislation. I obviously don't like it, because it gores our oxen.

However, it is pretty plain to see that Congress is elected every 2 years and they regularly enact new legislation, so I think that we need to assume that there is always some risk that the rules will change on us, sometimes rules we relied on, and not always in our favor.

The fact that all our crystal balls are broken is unfortunate, but I'm not sure what we can do about that, or about Congress, except to vote and express our views to our elected representatives.
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Old 08-03-2019, 11:54 PM   #645
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The multi generational stretch IRA may be newer, but the stretch IRA is not. This was part of my folks' estate planning long before 1999.
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Old 08-04-2019, 06:13 AM   #646
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+1. Could not agree more. If I knew, 30+ years ago, the rules would change.
I would have invested differently. My decision to invest in IRA's was
based on the rules promoted by Congress.
I'm shocked and chagrined, mortified and stupefied! If only they would have told me that laws can be changed!

Folks, tax laws and inheritance laws change all the time. And they will continue to do so. It's not a set it and forget it world. Social Security rules change. Estate Tax rules change. Taxes are raised. Taxes are cut. Some changes are progressive. Some changes are regressive. Some changes are immediate. Some changes are grandfathered in.

Talk with your CPA and find a new way to pass your wealth to future generations most efficiently, if needed. I have one friend who is looking at life insurance as an alternative tax dodge.
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Old 08-04-2019, 06:20 AM   #647
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I don't understand the animosity toward people who have an opinion that is differing from others. This is what is wrong today. Mod's, it's about time for Porky here.
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Old 08-04-2019, 06:33 AM   #648
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The conversation has remained civil so far. The debate regarding the intent has no resolution. We have no way of knowing if “ multigenerational stretch” was an objective of the legislators or an unintended exploitation created by some clever financial planners or tax attorneys.

Regardless of the origin, rules and practices can be changed, and when that happens we must adjust.
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Old 08-04-2019, 06:44 AM   #649
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The conversation has remained civil so far.
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Old 08-10-2019, 06:19 PM   #650
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A piece that surfaced today. Nothing especially new but it does discuss timelines for the SECURE act and other retirement-related matters.

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The hope now is that it gets included in the budget that Congress has to pass by Oct. 1, according to Hopkins.

“I’m still very much of the opinion that what’s going to occur here,” Hopkins said. “The Senate, generally speaking, wants it passed, and I think they’ll get there.”

The Secure Act, if passed, would be the biggest change to retirement rules since 2006.

It’s generally a positive bill, according to Hopkins. But it doesn’t address some key areas contributing to the retirement crisis, including looming shortfalls to Social Security and rising health costs. Not to mention other issues that crop up as people are living longer lives, he said.
https://www.cnbc.com/2019/08/10/cong...-security.html
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SECURE Act
Old 08-12-2019, 10:32 PM   #651
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SECURE Act

Looks like this one is just whizzing its way on through the House and Senate, although it's still pending: https://www.bankrate.com/retirement/...ement-savings/ I'm wondering how people would get around the 10 year deadline on inherited IRAs; not bad if you only inherit a little bit, but sure wouldn't want to leave the kids a fortune in IRAs...
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Old 08-13-2019, 07:41 AM   #652
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Looks like this one is just whizzing its way on through the House and Senate, although it's still pending: https://www.bankrate.com/retirement/...ement-savings/ I'm wondering how people would get around the 10 year deadline on inherited IRAs; not bad if you only inherit a little bit, but sure wouldn't want to leave the kids a fortune in IRAs...

Can't be whizzing very fast. They are all on vacation for the entire month of August.
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Old 08-13-2019, 07:54 AM   #653
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Can't be whizzing very fast. They are all on vacation for the entire month of August.
Lol. That is some slow whizzing!
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Old 08-13-2019, 08:09 AM   #654
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Lol. That is some slow whizzing!
wasn't there a time when "to take a wiz" had an other meaning?"
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Old 08-13-2019, 08:23 AM   #655
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Looks like this one is just whizzing its way on through the House and Senate, although it's still pending: https://www.bankrate.com/retirement/...ement-savings/ I'm wondering how people would get around the 10 year deadline on inherited IRAs; not bad if you only inherit a little bit, but sure wouldn't want to leave the kids a fortune in IRAs...
Old news. May be a little too late for many people to make meaningful adjustments for their kids to avoid a 10 year tax whammy. Of course, if the kids are that upset about paying taxes on their inheritance, they could always disclaim it.
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Old 08-13-2019, 08:31 AM   #656
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Looks like this one is just whizzing its way on through the House and Senate, although it's still pending: https://www.bankrate.com/retirement/...ement-savings/ I'm wondering how people would get around the 10 year deadline on inherited IRAs; not bad if you only inherit a little bit, but sure wouldn't want to leave the kids a fortune in IRAs...
Linked article is dated 5/29/2019. Maybe something will pop on that bill by the 5th of Never.
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Old 08-13-2019, 10:25 AM   #657
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wasn't there a time when "to take a wiz" had an other meaning?"
Taking a wiz is different than whizzing. You can take a wiz while you are whizzing, but I wouldn't recommend it.
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Old 08-13-2019, 01:25 PM   #658
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I'm nearly convinced that SECURE or something like it will become law. I suspect that future tax rates will be higher than they are for now. So, I'm planning to start doing Roth conversions to the top of the 24% tax bracket. IRMAA be darned!
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Old 08-13-2019, 04:30 PM   #659
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I'm nearly convinced that SECURE or something like it will become law. I suspect that future tax rates will be higher than they are for now. So, I'm planning to start doing Roth conversions to the top of the 24% tax bracket. IRMAA be darned!
I may be wrong (my spouse often claims I am) but I think this will die. Remember, we are dealing with an organization that specializes in doing nothing.
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Old 08-13-2019, 05:32 PM   #660
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Looks like this one is just whizzing its way on through the House and Senate, although it's still pending: https://www.bankrate.com/retirement/...ement-savings/

Dated: May 29, 2019

Whizzzzzz
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