Yarnstormer
Recycles dryer sheets
This is probably prep for raising full ss and medicare age as well.
Whoa... hold on a minute so I can go get my violin to play a song for you. The whole deal was that if you saved for retirement that the government would DEFER the tax on any earnlngs that you saved... they kept their part of the deal and now you resent having to pay taxes on it Tough sh!t. They never said it would be tax free and the deal was crystal clear. Get over it. Pigs get fat and hogs get slaughtered... don't be a hog.I answered that in my last post.
I have planned very carefully and am able to take thousands out of my traditional IRA every year tax free because I stay under the IRS tax threshold. I will continue to do that until age 70 when the government FORCES me to take out MORE each year than I need or want. In other words, the RMD government mandate only benefits the government.
Carrot, followed by stick.This is probably prep for raising full ss and medicare age as well.
Clearly this will more positively affect the more wealthy among us.How many people would this actually affect given the small numbers that have actually saved enough for retirement. Then factor in the even smaller number of those who don't need the money due to other sources of income.
Certainly it will reduce tax money flowing to the government.How will this help the government budget? What is the upside for it? Seems to me they have something up their sleeves.
I turned 70 1/2 six weeks ago, so this is my first RMD year.
Doesn’t that mean next year is your first RMD year?
When must I receive my required minimum distribution from my IRA?
You must take your first required minimum distribution for the year in which you turn age 70½. However, the first payment can be delayed until April 1 of the year following the year in which you turn 70½. For all subsequent years, including the year in which you were paid the first RMD by April 1, you must take the RMD by December 31 of the year.
Yes but I didn't understand how to apply it to me. NWBOUND put up a much easier to understand post (see #43 table)"Sandyandshirley" wrote up a comprehensive "tax hump" schedule of SS income combined with other income.
Yes but I didn't understand how to apply it to me. NWBOUND put up a much easier to understand post (see #43 table)
My 'crystal ball' sees a hike up the closest mountain/ hill / coastline in your near future .... it helps. Get out & play .... wasn't that why we FIREd?Agree. Had to read my referenced post a bunch of times to try and comprehend it.
My 'crystal ball' sees a hike up the closest mountain/ hill / coastline in your near future .... it helps. Get out & play .... wasn't that why we FIREd?
I turned 70 1/2 six weeks ago, so this is my first RMD year.
Sure, from a personal perspective, I'd love to eliminate RMDs entirely.
Similarly, I'd love to have a special tax deduction that applies only to bald males who were born in 1947.
But, if I put my public policy hat on, I understand that the gov't has to get taxes somewhere. Allowing me to save pre-tax money and defer taxes on both principal and earnings until 70+ is a huge tax advantage for savers like me. I don't know how to argue that the greater good is served by providing this tax deal.
I certainly don't know how to argue that the greater good is served by allowing my kids to inherit this attractive tax position.
So, I really can't complain about RMDs starting at 70 1/2.
The gummint needs more and more money. If it eliminates a tax, soon it will have to think of another tax..
Over time and depending on circumstance, government rules change.
Social Security was not taxed until the 1980s. If the government can implement a tax, it can also eliminate a tax.
RMD draconian rules need to change as many financial experts over the years have advocated... and apparently Trump agrees.
I'm not suggesting no taxes be paid on traditional IRA/401k withdrawals. I'm advocating the elimination of the RMD rule, or at least raising the RMD age at least a decade.
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I think the gummint is thinking about "delayed gratification", when it will be able to tax more when the geezers finally croak.
PS. When we croak, if our portfolio holds up well, my son who has no intention of marrying will be in the 32% or higher tax bracket when the inherited IRA RMD is added on top of his income.
The gummint needs more and more money.
Serfs? Feudalism?
Really?
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Others have long advocated the RMD age be raised a decade, to around age 80.
That would be a God-send for many senior taxpayers.