Is this going anywhere or is one senator still sitting on it?
It’s made more progress in this thread than in the US Senate. Stuck there.
Is this going anywhere or is one senator still sitting on it?
Just a guess but I'd bet most folks here will leave this earth with well over that amount in an IRA. More likely 2 to 5 times that amount.It may be a moot point anyway...how many really inherit IRAs worth over $400k?
I hope it stays stuck; as it is just a money grab by politicians.
There are some of you that have said that retirement accounts were meant to be a source of funds for the retiree and their spouse, and shouldn't get special tax treatment and be inherited.
Well, the same goes for my house, or rental properties. They were not meant to be shelter for my children, but they will receive special tax treatment when inherited, and are not forced to be liquidated 10 years after our death.
They're my personal property.
I hope it stays stuck; as it is just a money grab by politicians.
There are some of you that have said that retirement accounts were meant to be a source of funds for the retiree and their spouse, and shouldn't get special tax treatment and be inherited.
Well, the same goes for my house, or rental properties. They were not meant to be shelter for my children, but they will receive special tax treatment when inherited, and are not forced to be liquidated 10 years after our death.
They're my personal property.
Just a guess but I'd bet most folks here will leave this earth with well over that amount in an IRA. More likely 2 to 5 times that amount.
I hope it stays stuck; as it is just a money grab by politicians.
There are some of you that have said that retirement accounts were meant to be a source of funds for the retiree and their spouse, and shouldn't get special tax treatment and be inherited.
Well, the same goes for my house, or rental properties. They were not meant to be shelter for my children, but they will receive special tax treatment when inherited, and are not forced to be liquidated 10 years after our death.
They're my personal property.
That really cut me bad. Thanks for the reminder that deferred taxes belong to the taxing authorities among us.The deferred taxes in your IRA are our property.
Agree with you 100%.
Surprised how many posters disagree. At least they should "grandfather"
older IRAs. Changing the rules in the middle of the game. Shame on them!
All because they cannot manage the national debt/budget.
I don't think that IRA participants were ever encouraged to use IRAs as a tool to assist their children with their own retirements. Show me the .gov citations that encouraged that.I agree. They appear to actually maneuvering to create a tax bomb for the next generation after encouraging the parents to use this as a tool to assist their children with their own retirements.
Thanks for the reminder that deferred taxes belong to the taxing authorities among us.
But your house or rental properties are not the accumulated result of income that you never pay taxes on and saved for retirement.... your house and rental properties were paid for from income that you paid taxes on.... a huge difference... you totally missed the point.
I'm not missing any point. The appreciation of my house and rental properties will will get a stepped up basis on the day of my death, and no income taxes will be paid at all. Yes, there may be an estate tax if the value is large enough, but no income tax.
If your argument is that my mortgage payments were taxed as income, and therefore it makes the real estate gains "tax legit", does pass the smell test. Most of my rental income is sheltered by real and imaginary accounting expenses, and no income taxes were ever on paid on that income, even though real money goes into my bank account.
Perhaps you could say that my home is different as I cannot depreciate it on my tax return. My $600,000 home that I paid $150,000 has a large gain now, and income taxes will never be paid on that appreciation.
+1Yes, you are still missing the point. That tIRA money was the accumulation of income that was never taxed and at some point needs to be taxed. Your house and properties are NOT the accumulation of income that was never taxed so they are treated differently.
Yes, you are still missing the point. That tIRA money was the accumulation of income that was never taxed and at some point needs to be taxed. Your house and properties are NOT the accumulation of income that was never taxed so they are treated differently.
I'm not going to defend stepped-up basis... it is what it is but probably doesn't make a lot of sense theoretically unless one pays estate tax... but the powers that be gave those with estates under the exemption a nice tax break.
The deferred taxes in your IRA are our property.
I don't think that IRA participants were ever encouraged to use IRAs as a tool to assist their children with their own retirements. Show me the .gov citations that encouraged that.
I don't have proof, but I'd bet some financial advisors & brokerages did so in their ads for creating IRA's. Perhaps even companies did while encouraging 401k participation. I mean if you allowed to pass along IRA's to beneficiaries with extended time distribution, why wouldn't they tout that? And the Fed Gov isn't off the hook for providing encouragement when their own rules allowed it. How are they not?I don't think that IRA participants were ever encouraged to use IRAs as a tool to assist their children with their own retirements. Show me the .gov citations that encouraged that.
I don't have proof....
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,
.... Govt may not have marketed the stretch aspects, but there was a huge marketing effort by those offering the IRA's and advising about retirement/estate planning (and Govt representatives were certainly aware of it). ....