Senate Finance Committee Approves Bipartisan Pension Bills

[FIREchief]

Help me out here: this is a fantasy, passed by a committee, in a presidential election year. What is the likelihood this even gets voted on before this congress adjourns? Pretty slim, I would guess. Then the new congress comes in doing its usual pull-the-rope-in-500-different-directions with either an establishment president everyone despises or an outsider president that everyone despises. Pardon me if I fail to see a reason to start heating up the pitch and getting the feathers ready.

All good points. That said, this is a revenue raising bill passed by a republican led committee. The only thing the democrats would resist more than a republican initiative is not voting to raise revenue. I really hope you are right, but I'm still a bit nervous.

 

[harley]

Help me out here: this is a fantasy, passed by a committee, in a presidential election year. What is the likelihood this even gets voted on before this congress adjourns? Pretty slim, I would guess. Then the new congress comes in doing its usual pull-the-rope-in-500-different-directions with either an establishment president everyone despises or an outsider president that everyone despises. Pardon me if I fail to see a reason to start heating up the pitch and getting the feathers ready.

With gov't or kings like Gumby, there's always reason to have the tar and feathers handy. There were reasons for the Magna Carta and the American and French revolutions.

Back to our regularly scheduled argument, wouldn't an inherited Roth still pass tax free? I can see it needing to be emptied within 5 years so whatever it gets invested in can be taxed, but the Roth itself would still pass through sans taxes. At least that's the way I read it. Obviously not the eternal family fortune Ed Slott has been selling for years, but still far better than a tIRA that would get taxed (after the first $450K) at a higher rate than it probably would have with the original owner's RMDs. Is this right?

 

[brewer12345]

With gov't or kings like Gumby, there's always reason to have the tar and feathers handy. There were reasons for the Magna Carta and the American and French revolutions.

Absolutely. That said, good luck with all that unless you are planning on joining your local militia.

I have no doubt that we will all be held by the ankles and shaken, repeatedly. It is to easy for the gubmint to stick this stuff into bills and stick it to us. Doesn't seem like there is much we can do about it under the present set of circumstances. I think it is unlikely that this is going anywhere until (possibly) next year, but we all know that this sort of thing will increasingly come down the pike as it is just too easy for the powers that be to spend other people's money (mine and yours).

 

[rodi]

Would this effect existing beneficiary IRAs?

 

[FIREchief]

Would this effect existing beneficiary IRAs?

According to the links I've read, the answer would be no. As an earlier poster suggested, that gives folks with large tIRAs less than three months to die if they want to benefit from the old rules. We're still not sure about the impact on Roth IRAs.

 

[OverThinkMuch]

Before I also get scared, the list of exceptions is significant. Spouse and children retain the ability to do a stretch IRA. It sounds like this bill might target generation skipping inheritance, like an IRA left to a grandchild. Although scary, the net effect for many people leaving IRAs to their spouse or children might be minimal.