RMD going to 72?

Kim451 said:
Looks like this one is just whizzing its way on through the House and Senate, although it's still pending: https://www.bankrate.com/retirement/how-secure-act-could-impact-retirement-savings/ I'm wondering how people would get around the 10 year deadline on inherited IRAs; not bad if you only inherit a little bit, but sure wouldn't want to leave the kids a fortune in IRAs...
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Old news. May be a little too late for many people to make meaningful adjustments for their kids to avoid a 10 year tax whammy. :facepalm: Of course, if the kids are that upset about paying taxes on their inheritance, they could always disclaim it. :D
 
Kim451 said:
Looks like this one is just whizzing its way on through the House and Senate, although it's still pending: https://www.bankrate.com/retirement/how-secure-act-could-impact-retirement-savings/ I'm wondering how people would get around the 10 year deadline on inherited IRAs; not bad if you only inherit a little bit, but sure wouldn't want to leave the kids a fortune in IRAs...
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Linked article is dated 5/29/2019. Maybe something will pop on that bill by the 5th of Never.
 
I'm nearly convinced that SECURE or something like it will become law. I suspect that future tax rates will be higher than they are for now. So, I'm planning to start doing Roth conversions to the top of the 24% tax bracket. IRMAA be darned!
 
Kwirk said:
I'm nearly convinced that SECURE or something like it will become law. I suspect that future tax rates will be higher than they are for now. So, I'm planning to start doing Roth conversions to the top of the 24% tax bracket. IRMAA be darned!
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I may be wrong (my spouse often claims I am) but I think this will die. Remember, we are dealing with an organization that specializes in doing nothing.
 
joeea said:
Talk with your CPA and find a new way to pass your wealth to future generations most efficiently, if needed. I have one friend who is looking at life insurance as an alternative tax dodge.
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The only way a CPA will be able to help is if they have a time machine. For somebody who invested heavily in tax deferred qualified assets, they're "already pregnant" with a large future tax liability. They went into it understanding that a stretch would lessen the pain. Apparently, you (and Washington) have no sympathy. Those that say "well you shouldn't have gotten pregnant then" are really a tremendous help. :facepalm:
 
SecondCor521 said:
However, it is pretty plain to see that Congress is elected every 2 years and they regularly enact new legislation, so I think that we need to assume that there is always some risk that the rules will change on us, sometimes rules we relied on, and not always in our favor.
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Well, only a third of the Senate is elected every two years and (fortunately) that's where this thing is held up. I'm certain that there is a political angle on this for the house. They have to pass "something" to look like they're doing their jobs, even though it might be (and apparently is) DOA in the Senate.
 
This is a “common questions about the SECURE Act” posted today by the Ed Slott group. It was written last month (August ‘19) but I don’t recall a posting here with it.

Some answers appear definite but without an actual passage signed, sealed, delivered, who knows for sure?

There’s reference to grandfathering existing inherited IRAs, which is of interest to many.

https://www.irahelp.com/slottreport/7-common-questions-secure-act
 
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steelyman said:
This is a “common questions about the SECURE Act” posted today by the Ed Slott group. It was written last month (August ‘19) but I don’t recall a posting here with it.

Some answers appear definite but without an actual passage signed, sealed, delivered, who knows for sure?

There’s reference to grandfathering existing inherited IRAs, which is of interest to many.

https://www.irahelp.com/slottreport/7-common-questions-secure-act
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note that for those born after june 30 this is only a one year delay. Second with historically low tax rates it makes sense to withdraw up to the top of the 24% bracket in many cases. With the other side change to how rmds are handled for inherited iras plus the likely hood that rates will go up it makes sense to start withdrawals earlier.
 
Anyone hear any more on this possible law change?
 
street said:
Anyone hear any more on this possible law change?
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Last I heard, several Senators placed "holds" on the SECURE Act, meaning it couldn't be approved by unanimous consent in an expedited fashion, and instead would have to be debated.

The Senate Majority Leader has consistently stated that he will not bring this bill to the floor unless the holds are lifted.

And so it sits.
 
Well, I'm glad not everyone works like that or we would get nowhere in life.

Thanks joeea
 
I don't see it as an improvement, so I'm in no hurry for it to go through.
 
joeea said:
Last I heard, several Senators placed "holds" on the SECURE Act, meaning it couldn't be approved by unanimous consent in an expedited fashion, and instead would have to be debated.

The Senate Majority Leader has consistently stated that he will not bring this bill to the floor unless the holds are lifted.

And so it sits.
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Which Senators?
 
I am curious if QCDs will now have to wait to age 72 for those taking first RMD at 72. QCD is qualified charitable distribution from an IRA.
 
VanWinkle said:
I am curious if QCDs will now have to wait to age 72 for those taking first RMD at 72. QCD is qualified charitable distribution from an IRA.
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Seeing that QCD's are allowed only for those who must take RMD's I would think so.
 
VanWinkle said:
I am curious if QCDs will now have to wait to age 72 for those taking first RMD at 72. QCD is qualified charitable distribution from an IRA.
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I would assume so as QCDs can be used to meet the RMD requirement, but not for general withdrawals.
 
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