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04-12-2019, 11:59 AM
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#101
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Thinks s/he gets paid by the post
Join Date: Jan 2018
Location: Elyria, OH
Posts: 1,937
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 Quote:
Originally Posted by RunningBum
Still, I can see them putting RMDs on a Roth to limit how much gets passed on, but not taxing any of it.
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More likely, to get that money in a taxable account where earnings/gains from that point will be subject to tax. 
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04-12-2019, 01:09 PM
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#102
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,458
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Quote:
Originally Posted by Spock
Then how do you track being able to withdraw the principal but not the gains without a penalty?
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I have a spreadsheet showing the contributions I made each year, and downloaded all available statements online from VG. But the problem is, I'm missing statements for the years 2001-2004 (Vanguard's online records don't go back that far). I've used the maximum allowed contribution during those years as placeholders, but all I have to go on is an ending balance for 2005 of $12K (I made a $4K contribution that year). Depending on market gains/losses, I could have made contributions going back as far as 2001.
Does anyone have any ideas on how I could solve this problem? Can I ask VG for archived statements?
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04-12-2019, 05:46 PM
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#103
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gone traveling
Join Date: Aug 2006
Posts: 994
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I'm happy this bill is very likely to become law.
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04-12-2019, 05:46 PM
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#104
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gone traveling
Join Date: Aug 2006
Posts: 994
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Quote:
Originally Posted by COcheesehead
What has been left out of the discussion is that inherited IRA's must be spent within 10 years. That will help pay for some of this.
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News article I read said the companion Senate bill has it at 5 years.
So that will need to be compromised before the bill is passed.
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04-12-2019, 06:31 PM
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#105
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Location: St. Charles
Posts: 3,737
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Quote:
Originally Posted by Helena
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I'm happy this bill is very likely to become law.
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Why? What are the pros and cons for you?
To me, the elimination of a stretch IRA for DS does not sit well. I can live with it (pun intended), but to me it out weighs the 1.5 year extension to RMD time.
OTOH, the only reason this matters, is my IRA is significant. First world problem.
__________________
If your not living on the edge, you're taking up too much space.
Never slow down, never grow old!
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04-12-2019, 06:37 PM
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#106
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,508
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Quote:
Originally Posted by HNL Bill
I have a spreadsheet showing the contributions I made each year, and downloaded all available statements online from VG. But the problem is, I'm missing statements for the years 2001-2004 (Vanguard's online records don't go back that far). I've used the maximum allowed contribution during those years as placeholders, but all I have to go on is an ending balance for 2005 of $12K (I made a $4K contribution that year). Depending on market gains/losses, I could have made contributions going back as far as 2001.
Does anyone have any ideas on how I could solve this problem? Can I ask VG for archived statements?
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Do you have your tax forms for all those years?
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04-12-2019, 06:47 PM
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#107
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gone traveling
Join Date: Aug 2006
Posts: 994
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Quote:
Originally Posted by CardsFan
Why? What are the pros and cons for you?
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No cons in the House bill for me.
It extends RMD two years for me and that's two more years of taking a smaller distribution and still paying zero income tax.
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04-12-2019, 06:51 PM
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#108
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 36,751
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I'm still confused about the proposed changes to an inherited IRA as the language seemed off.
If a non-spouse inherits your IRA and is less than 10 years younger than you, what are the rules?
__________________
Retired since summer 1999.
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04-12-2019, 07:00 PM
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#109
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Location: St. Charles
Posts: 3,737
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Quote:
Originally Posted by audreyh1
I'm still confused about the proposed changes to an inherited IRA as the language seemed off.
If a non-spouse inherits your IRA and is less than 10 years younger than you, what are the rules?
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From what I could gather, a non-spouse loses the stretch IRA ability unless they are a child of the decedent, and meets certain restrictions (very young, disabled, etc). The house bill requires the IRA to be emptied in 10 years, the senate is 5 years. There is an exemption in the senate bill for $400k, I think.
I'll wait and see what they actually do.
__________________
If your not living on the edge, you're taking up too much space.
Never slow down, never grow old!
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04-12-2019, 07:08 PM
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#110
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,349
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This won't affect the IRA's I inherited, but whoever gets my IRA's is screwed. I should have converted more in the down years, but hindsight and all that...
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04-13-2019, 01:20 PM
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#111
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Thinks s/he gets paid by the post
Join Date: Jan 2018
Location: Elyria, OH
Posts: 1,937
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Quote:
Originally Posted by CardsFan
Why? What are the pros and cons for you?
To me, the elimination of a stretch IRA for DS does not sit well. I can live with it (pun intended), but to me it out weighs the 1.5 year extension to RMD time.
OTOH, the only reason this matters, is my IRA is significant. First world problem.
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Yes. I chose to take RMD's from an inherited IRA over 5 years instead of using my life expectancy. My bad. In my grief, I wasn't thinking through the options clearly. It pushed my husband and I into the next higher tax bracket for those 5 years. It's not something I'd recommend to anyone. I'd hate to see it become a law, even over 10 years.
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04-14-2019, 01:09 PM
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#112
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,682
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Quote:
Originally Posted by Another Reader
This won't affect the IRA's I inherited, but whoever gets my IRA's is screwed. I should have converted more in the down years, but hindsight and all that...
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Screwed? No.
Someone is getting $ they didn’t earn.
They’ll have to pay more taxes on the money being given to them.
They’re not getting screwed, they are just not making out as much as before.
You can always refused or disclaim the inheritance, then you don’t have to pay any taxes. Problem solved. 
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04-14-2019, 01:33 PM
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#113
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gone traveling
Join Date: Aug 2006
Posts: 994
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Also, only the House version of the bill increases the RMD age to 72.
Hopefully, Senators will get on board and change their Senate version of the bill to match the House version... unless they prefer civilian life.
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04-14-2019, 10:19 PM
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#114
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Thinks s/he gets paid by the post
Join Date: Apr 2008
Posts: 1,855
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"Lawmakers in both the House and Senate are considering bipartisan bills aimed at making it easier for Americans to save for retirement."
Why do I think "making it easier" is just a ruse?
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04-14-2019, 10:51 PM
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#115
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,373
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Quote:
Originally Posted by Helena
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Also, only the House version of the bill increases the RMD age to 72.
Hopefully, Senators will get on board and change their Senate version of the bill to match the House version... unless they prefer civilian life.
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I kinda doubt that changing RMDs by 18 months (or not) is a big threat to a Senator's seat.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
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04-15-2019, 12:10 AM
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#116
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Thinks s/he gets paid by the post
Join Date: Feb 2003
Posts: 2,395
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Quote:
Originally Posted by statsman
"Lawmakers in both the House and Senate are considering bipartisan bills aimed at making it easier for Americans to save for retirement."
Why do I think "making it easier" is just a ruse?
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Many BOHICA-oriented bills have very positive, upbeat-sounding titles.
__________________
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
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04-15-2019, 09:13 AM
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#117
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2007
Posts: 13,034
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Quote:
Originally Posted by USGrant1962
I kinda doubt that changing RMDs by 18 months (or not) is a big threat to a Senator's seat.
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LOL, yeah, unless it's a one vote difference race in Helena's district, I don't see this being a factor.
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04-15-2019, 11:31 AM
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#118
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Posts: 1,978
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Quote:
Originally Posted by teejayevans
Screwed? No.
Someone is getting $ they didn’t earn.
They’ll have to pay more taxes on the money being given to them.
They’re not getting screwed, they are just not making out as much as before.
You can always refused or disclaim the inheritance, then you don’t have to pay any taxes. Problem solved. |
Well.... I see both points.
For anyone other than a spouse inheriting, I don't see a provision that provides for different taxation on earned income versus income from the inherited IRA.
For our sons and daughters inheriting, I am assuming any income they make on their own will be bumped into higher tax brackets by the 5 or 10 year payout of an inherited IRA. This may be a tax torpedo for them.
If this passes with the $400K limit...and a 5 year inherited payout then I will start to take distributions. I have more after tax liquid assets than deferred but I am still over that threshold on deferred as I am sure most of us are. Under 400K and they can stretch it...right?
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04-16-2019, 01:28 AM
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#119
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gone traveling
Join Date: Aug 2006
Posts: 994
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Quote:
Originally Posted by USGrant1962
I kinda doubt that changing RMDs by 18 months (or not) is a big threat to a Senator's seat.
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For me, it's two years.
Two years make a big difference to me and probably to many others.
Today, I called my two Senators to let them know.
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04-16-2019, 07:32 AM
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#120
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,508
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Quote:
Originally Posted by USGrant1962
I kinda doubt that changing RMDs by 18 months (or not) is a big threat to a Senator's seat.
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In general killing the stretch IRA will have more long term effect.
For someone who might inherit a (stretch ) IRA with 1 or 2 mil, the death of the stretch would be a significant hit.
Quote:
Originally Posted by Helena
For me, it's two years.
Two years make a big difference to me and probably to many others.
Today, I called my two Senators to let them know.
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However, we all look at how it affects us individually.
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