Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Looks like Secure 2.0 will pass
Old 05-06-2021, 06:09 AM   #1
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,199
Looks like Secure 2.0 will pass

So this means I can just let my IRA grow until 75! Will step up income in retirement by taking SSA this year & IRA at 75. Anyone else excited?
gayl is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-06-2021, 06:45 AM   #2
Recycles dryer sheets
 
Join Date: Nov 2020
Posts: 132
As I approach retirement, it amazes me how much of it is managing taxable income (RMDs, ACA, Roth conversions, limiting taxes on Social Security) and I haven't even started looking at medicare stuff
qwerty3656 is offline   Reply With Quote
Old 05-06-2021, 06:48 AM   #3
Full time employment: Posting here.
Richard4444's Avatar
 
Join Date: Jul 2011
Location: South Florida
Posts: 516
Gosh, if this keeps on occurring - I may be able to wait until I am 100 until I begin my RMDs

Rich
Richard4444 is offline   Reply With Quote
Old 05-06-2021, 06:57 AM   #4
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Brighton
Posts: 1,754
The RMD phase in seems very complicated, just the way congress likes it.
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 05-06-2021, 06:58 AM   #5
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Sheltered in place
Posts: 34,546
It appears “Secure 2.0”, more formally known as “Securing a Strong Retirement Act 2021” was voted out of the Ways and Neans committee and now is expected to get a vote by the House. A copy of the bill is here https://waysandmeans.house.gov/sites...17hr2954ih.pdf and here’s a media summary https://news.yahoo.com/secure-act-20...172143637.html
MichaelB is online now   Reply With Quote
Old 05-06-2021, 07:09 AM   #6
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 47,910
So I will turn 75 later this year, missing out on realizing any benefit from this legislation. I also missed out on the RMD change to 72. Reminds me of my working days when after 15 years with the company I finally qualified for a third week of vacation - the same year they reduced the qualification to 5 years.

Everyone is invited to my pity party.
__________________
Numbers is hard

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 05-06-2021, 07:34 AM   #7
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,199
Correction: I can only let my IRA grow until 73. Ah well. I knew the IRS would want their cut

"SEC. 105. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY DISTRIBUTIONS.
‘‘(I) In the case of an individual who attains age 72 after December 31, 2021, and age 73 before January 1, 2029, the applicable age is 73."
gayl is offline   Reply With Quote
Old 05-06-2021, 07:37 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,466
Quote:
Secure 2.0 increases the RMD age further to 73 starting on Jan. 1, 2022; to 74 starting on Jan. 1, 2029; and 75 starting on Jan. 1, 2032.
So it’s going to be 73 for those born 1950 or later starting next year, 74 for those born in 1956* or later starting in 2029, and 75 for those born in 1958 or later.

*Someone born in 1955 will turn 73 in 2028, so they would still be subject to RMD starting that year instead of 74.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 05-06-2021, 10:08 AM   #9
Thinks s/he gets paid by the post
GravitySucks's Avatar
 
Join Date: Feb 2014
Location: Syracuse
Posts: 2,978
Now I'll be able to bring more with me when I die!
__________________
“No, not rich. I am a poor man with money, which is not the same thing"
GravitySucks is offline   Reply With Quote
Old 05-06-2021, 10:26 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Oct 2019
Posts: 1,559
Quote:
Originally Posted by audreyh1 View Post
So it’s going to be 73 for those born 1950 or later starting next year, 74 for those born in 1956* or later starting in 2029, and 75 for those born in 1958 or later.

*Someone born in 1955 will turn 73 in 2028, so they would still be subject to RMD starting that year instead of 74.

That's me born in 1955.
Oh well, at least I get one more year for Roth Conversions without RMDs.
My young bride will get to wait until 75!
Now, how do I split the Roth conversions to minimize the amount left in IRAs? Maybe it doesn't matter which one of us has what amount left in their IRA account.
Time2 is offline   Reply With Quote
Old 05-06-2021, 10:45 AM   #11
Dryer sheet aficionado
PageTwo's Avatar
 
Join Date: Mar 2021
Location: Seattle
Posts: 27
Thanks to this forum and the education it's provided me, I plan to convert all my pre-tax 401K into a Roth IRA in yearly manageable chunks and be done before I'm forced to take any RMDs... I'm able to start early thanks to the "rule of 55" which applies to my 401K.
__________________
5 4 months away... but who's counting?
PageTwo is offline   Reply With Quote
Old 05-06-2021, 10:57 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,466
Quote:
Originally Posted by Time2 View Post
That's me born in 1955.
Oh well, at least I get one more year for Roth Conversions without RMDs.
My young bride will get to wait until 75!
Now, how do I split the Roth conversions to minimize the amount left in IRAs? Maybe it doesn't matter which one of us has what amount left in their IRA account.
Same with us. DH will just miss 74 as he was born in 1955, I will just make the 75 year.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 05-06-2021, 10:58 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,466
Quote:
Originally Posted by PageTwo View Post
Thanks to this forum and the education it's provided me, I plan to convert all my pre-tax 401K into a Roth IRA in yearly manageable chunks and be done before I'm forced to take any RMDs... I'm able to start early thanks to the "rule of 55" which applies to my 401K.
I think you can do Roth conversions before 55. Has naught to do with Rule of 55.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 05-06-2021, 11:04 AM   #14
Thinks s/he gets paid by the post
Huston55's Avatar
 
Join Date: Jul 2011
Location: The Bay Area
Posts: 2,629
Quote:
Originally Posted by PageTwo View Post
Thanks to this forum and the education it's provided me, I plan to convert all my pre-tax 401K into a Roth IRA in yearly manageable chunks and be done before I'm forced to take any RMDs...
Why "chunks?" Can't you just do a Mega-Back Door conversion? That's what I did.
__________________
You may be whatever you resolve to be.
100% x 10% > 10% x 100%
Small pensions & SS cover essentials
Huston55 is offline   Reply With Quote
Old 05-06-2021, 11:10 AM   #15
Recycles dryer sheets
 
Join Date: Aug 2020
Posts: 215
Is an updated RMD divisor calculator published for the proposed revised RMD age change?

I ran a quick calculation in my model with age 75 RMD using the same divisors as age 72, and it didn’t change my net worth balance much at end of planned life expectancy. This is to be expected, a regulation change that gets headlines but the real effect is small.
chassis is offline   Reply With Quote
Old 05-06-2021, 11:24 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Oct 2019
Posts: 1,559
Quote:
Originally Posted by PageTwo View Post
Thanks to this forum and the education it's provided me, I plan to convert all my pre-tax 401K into a Roth IRA in yearly manageable chunks and be done before I'm forced to take any RMDs... I'm able to start early thanks to the "rule of 55" which applies to my 401K.

I started converting our tIRAs, but I want to stay in the 12% tax bracket while I do that. This year I was able to convert $75k. The first world problem I have is, it's been growing faster than I can take it out!
Time2 is offline   Reply With Quote
Old 05-06-2021, 11:47 AM   #17
Recycles dryer sheets
 
Join Date: Nov 2020
Posts: 132
Quote:
Originally Posted by Huston55 View Post
Why "chunks?" Can't you just do a Mega-Back Door conversion? That's what I did.
You would do "chunks" to stay in a lower tax bracket (I think)
qwerty3656 is offline   Reply With Quote
Old 05-06-2021, 12:12 PM   #18
Thinks s/he gets paid by the post
Huston55's Avatar
 
Join Date: Jul 2011
Location: The Bay Area
Posts: 2,629
Quote:
Originally Posted by PageTwo View Post
Thanks to this forum and the education it's provided me, I plan to convert all my pre-tax 401K into a Roth IRA in yearly manageable chunks and be done before I'm forced to take any RMDs... I'm able to start early thanks to the "rule of 55" which applies to my 401K.
Quote:
Originally Posted by Huston55 View Post
Why "chunks?" Can't you just do a Mega-Back Door conversion? That's what I did.
Quote:
Originally Posted by qwerty3656 View Post
You would do "chunks" to stay in a lower tax bracket (I think)
That makes sense if: (1) your 401k Plan Description will allow it and, (2) any tax savings are worth the effort. For me, my Plan Description allowed the Mega-Back Door conversion but, only once. Also remember that tax is due on only the "earnings", which must follow their original associated Post-Tax 401k contributions. So, perhaps, the tax on the earnings might not be large enough for you want to do it twice. YMMV.
__________________
You may be whatever you resolve to be.
100% x 10% > 10% x 100%
Small pensions & SS cover essentials
Huston55 is offline   Reply With Quote
Old 05-06-2021, 12:50 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 11,480
Quote:
Originally Posted by REWahoo View Post
So I will turn 75 later this year, missing out on realizing any benefit from this legislation. I also missed out on the RMD change to 72. Reminds me of my working days when after 15 years with the company I finally qualified for a third week of vacation - the same year they reduced the qualification to 5 years.

Everyone is invited to my pity party.
Ditto here on missing the benefit of the RMD changes!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 05-06-2021, 12:56 PM   #20
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Sheltered in place
Posts: 34,546
Quote:
Originally Posted by REWahoo View Post
So I will turn 75 later this year, missing out on realizing any benefit from this legislation. I also missed out on the RMD change to 72. Reminds me of my working days when after 15 years with the company I finally qualified for a third week of vacation - the same year they reduced the qualification to 5 years.

Everyone is invited to my pity party.
Quote:
Originally Posted by youbet View Post
Ditto here on missing the benefit of the RMD changes!
Let’s all commiserate together over a pint.

While I missed all these breaks, and also the health care ones, I’m still retired, and quite happy to be here.
MichaelB is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Setting up your investments like an RC low pass filter nun FIRE and Money 26 04-23-2011 12:26 PM
This is What a Scam Looks Like JPatrick Life after FIRE 13 04-06-2007 10:32 PM
this is what 206 million in CASH looks like.... thefed Other topics 9 03-17-2007 08:13 PM
Looks a lot like brewer12345 FIRE and Money 29 05-25-2006 01:36 PM
Looks like this Forum's Index is screwed up....... Cut-Throat Other topics 52 04-30-2005 08:30 AM

» Quick Links

 
All times are GMT -6. The time now is 12:59 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.