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Old 05-15-2019, 06:39 AM   #141
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It would sure help the discussion to link the actual bill and not just a media report.
As Helena noted as a new Bill, I'm guessing this is it

As some of the media notes there are many overlaps in these bills, I would expect that many of theses bills will be stuck as bills until the differences are resolved.
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Old 05-15-2019, 06:44 AM   #142
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Now would be nice but 2023 .... No value to me.
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Old 05-15-2019, 07:12 AM   #143
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Originally Posted by bingybear View Post
As Helena noted as a new Bill, I'm guessing this is it

As some of the media notes there are many overlaps in these bills, I would expect that many of theses bills will be stuck as bills until the differences are resolved.
Thanks for the link.
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Old 05-15-2019, 08:12 AM   #144
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I'm glad this thread is continuing to track the progress of current versions of the bills being considered. I reread the posts and thought some had disappeared but remembered that there's a recent parallel but related thread, focusing more on the inherited IRA aspect:

Ending Stretch IRAs
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Old 05-15-2019, 09:10 AM   #145
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+1

I'll be 69 in 2030. DW will be 70. I like the additional 5 years for Roth conversions. But with SS starting at 70, there won't be much room for conversions at a rate lower than after RMDs start. So, not sure whether this will be helpful or not in that regard. But certainly a move in the right direction, should it pass.
I was thinking the same thing with SS at 70 y.o., but the 12% bracket including the standard deduction still is a little of 100k, so there could be some Roth conversion room.

At the very least, there would be delays in paying for taxes for monies not necessarily wholly needed for 5 years.
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Old 05-15-2019, 09:16 AM   #146
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I wonder if someone on the cusp, needing to do RMD's in 2022 at age 70-1/2, would be able to call a "redo" in 2023 at age 71 with no RMD's then start up again in 2024? I know it is just a bill at the moment. I don't understand why the change would be delayed and isn't effective Jan 1 of the year following the signing of the law.
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Old 05-15-2019, 10:43 AM   #147
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Not mentioned in the article, that I could see. But I would assume the opposite, since the original Senate bill referenced earlier in the thread eliminated the stretch IRA in most cases.
In the Senate bill linked by @bingybear, the stretch IRA appears to remain unaffected from what I could tell by a review of the table of contents.
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Old 05-15-2019, 11:21 AM   #148
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In the Senate bill linked by @bingybear, the stretch IRA appears to remain unaffected from what I could tell by a review of the table of contents.
That would be good, if true.

My wife turns 70 late 2022 and is not required to take an RMD until 2023. Sounds like under this latest bill she would get a delay from 2023 to 2024.

In my case, I would be turning 71 in 2030, so I would be able to get the delay until age 75.
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Old 05-15-2019, 12:37 PM   #149
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As Helena noted as a new Bill, I'm guessing this is it

As some of the media notes there are many overlaps in these bills, I would expect that many of theses bills will be stuck as bills until the differences are resolved.
That would be good for me, since it would hold off RMDs until 2040, which is when I would turn 75. It doesn't seem too many changes in the laws regarding retirement benefit Generation X, but this would be one.
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Old 05-15-2019, 01:34 PM   #150
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In the Senate bill linked by @bingybear, the stretch IRA appears to remain unaffected from what I could tell by a review of the table of contents.
Yeah. That was my take away from the link to the actual bill. Now we get to wait and see what, if anything, gets negotiated and enacted.
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Old 05-15-2019, 01:47 PM   #151
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Would be nice if this would pass. In 2030, I will be 70.
I would hit the 72 RMD age in 2031, so I guess I could wait until 75 then! Which would be 2034.

DH, however, would hit 72 before 2030, so he would have to start RMDs by 2027.
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Old 05-15-2019, 01:50 PM   #152
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I would hit the 72 RMD age in 2031, so I guess I could wait until 75 then!
Yeah, it appears that this bill would change the RMD age to 75 for anyone born in, or after, 1955, "sort of". (If I am parsing the "transition rule" portion correctly). For sure it applies to anyone born in 1958 or later.)

The "transition rule" piece of this is confusing to me. It makes it sounds like someone born in (say) 1957 would have to take an RMD in 2029 (age 72) but not in 2030 or 2031 (age 73-74), and then resuming RMDs in 2032 (age 75). Can anyone figure out what this is really saying? If that is the case, people born in 1956 and 1957 would have an RMD "donut hole".

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(ii) TRANSITION RULE.—If, as of a calendar year, an employee has not attained the applicable age with respect to such year, such employee shall be treated as not having attained the applicable age under this paragraph for such year without regard to whether, in a previous calendar year, the employee had attained the applicable age with respect to such previous calendar year.
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Old 05-15-2019, 01:54 PM   #153
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I would hit the 72 RMD age in 2031, so I guess I could wait until 75 then! Which would be 2034.

DH, however, would hit 72 before 2030, so he would have to start RMDs by 2027.
So would the distribution rates (3.65% in the first year,etc) start the same at 75 y.o., or will the % be greater/less?
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Old 05-15-2019, 02:05 PM   #154
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So would the distribution rates (3.65% in the first year,etc) start the same at 75 y.o., or will the % be greater/less?
The bill text linked earlier has a section 109 that says that the mortality tables would be updated as part of the bill. So who knows, but my guess would be that the divisor at 75 would be equal to or larger than the current 75 divisor - meaning smaller RMDs.
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Old 05-15-2019, 02:05 PM   #155
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So would the distribution rates (3.65% in the first year,etc) start the same at 75 y.o., or will the % be greater/less?
As best as I can tell, it would still use mortality tables, but (a) these tables would have to be updated within a year of passage of this bill into law, and (b) the mortality tables have to be updated at least once every 10 years.

That said, life expectancies are pretty stagnant right now, so barring any medical breakthroughs that prevent or delay a lot of deaths from disease, they may not change all that much.
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Old 05-15-2019, 04:15 PM   #156
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It would sure help the discussion to link the actual bill and not just a media report.


Yes, it would. I searched for it, but couldn't find it on the government website. Probably because it was just filed a few days ago. The bill number is S 1431

The Senate bill delaying RMD age 72 to 2023 shuts me out of the benefit. Ironically, it also shuts out one of my US senators who was also born the same year. I contacted his office to voice my opinion.

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Old 05-16-2019, 02:34 AM   #157
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It would be nice to defer that tax torpedo a bit.
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Old 05-16-2019, 04:45 AM   #158
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It would be nice to defer that tax torpedo a bit.
Yeah, pretty much our benefit, including not having SS and RMDs start at the same time.
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Old 05-21-2019, 07:30 PM   #159
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I'm sure a lot of you recall that these bills are nothing new. They've been floating around both houses for several years. I believe that in late 2015 we had similar reports of unanimous passing of bills in bipartisan subcommittees that were going to eliminate the stretch IRAs. It didn't happen then and I'm really hoping it doesn't now. That said, it's likely only a matter of time so we might as well just get on with it. The House's ten year total cash out appears more reasonable to me than the Senate's five year/except $400K version, if for no other reason than the $400K would likely just get taken back the next go around.

Stating the obvious, this is within Congress's power. Morally/ethically (which has little relevance) they're taking away a carrot that was out there for decades. The reason for the original rules? "To encourage/increase savings." The reason for the new rules? "To encourage/increase savings." I guess savings is bad unless it helps the government out of a financial jam. How dare we try to give our children the basis of a good retirement when Washington needs the money to bail out somebody who never saved a dime.
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Old 05-21-2019, 07:44 PM   #160
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