Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-19-2020, 11:19 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 1,775
Quote:
Originally Posted by Midpack View Post
My first impulse with the Secure Act, and now Secure 2.0, was to get ready to slow Roth conversions to spread them until age 72, now 75 (yes, I realize neither has been passed/enacted). But I'm still convinced it's only a matter of time until tax rates and/or capital gains rates become more confiscatory, so I'm going to stay on my original schedule to fill to the 22% bracket until age 70, and then two more years at 22% converting DW's TIRA. YMMV, as there's no way any of us can know what will actually come...
Are you saying the Secure Act was not passed? Is was signed by Pres. Trump on December 20, 2019. Maybe I misread your comment?
CRLLS is online now   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 11-19-2020, 11:28 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 16,620
Quote:
Originally Posted by CRLLS View Post
Are you saying the Secure Act was not passed? Is was signed by Pres. Trump on December 20, 2019. Maybe I misread your comment?
My bad. I was conflating the fact there are still no IRS published RMD tables reflecting the age change in the original Secure Act with "passage" in Dec 2019 - unless I missed it. Not sure what the holdup is there, all discussed in an earlier thread. But that doesn't change my plans for the reasons I provided.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 30% bond funds / 20% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 11-19-2020, 12:49 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 1,775
I don't think the rates vs age changed, just the minimum age. When you think about it, the multiplier is the inverse of number of years left to live (statistically). The Secure act didn't take away or add years above ground to anyone's real life. I know life expectancy tables could be updated to today's actuarial life expectancies. But that hasn't happened yet to my knowledge.
CRLLS is online now   Reply With Quote
Old 11-19-2020, 12:58 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 16,620
Quote:
Originally Posted by CRLLS View Post
I don't think the rates vs age changed, just the minimum age. When you think about it, the multiplier is the inverse of number of years left to live (statistically). The Secure act didn't take away or add years above ground to anyone's real life. I know life expectancy tables could be updated to today's actuarial life expectancies. But that hasn't happened yet to my knowledge.
It appears were both right in a sense. Ive seen the tables will be updated, but not necessarily as a result of the Secure Act as I assumed.
Quote:
While the same life expectancy factors will continue to be used with no change under the SECURE Act, the IRS has recently (and separately) proposed to update the current life expectancy tables to adjust for longer expected lifespans. The IRS proposal has not yet been finalized, but is largely expected to be effective for RMDs calculated for 2021, and beyond.
https://www.kitces.com/blog/secure-a...-1-2-qcd-2020/
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 30% bond funds / 20% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 11-19-2020, 01:02 PM   #25
Thinks s/he gets paid by the post
 
Join Date: Mar 2013
Location: Coronado
Posts: 2,369
Quote:
Originally Posted by CRLLS View Post
I don't think the rates vs age changed, just the minimum age. When you think about it, the multiplier is the inverse of number of years left to live (statistically). The Secure act didn't take away or add years above ground to anyone's real life. I know life expectancy tables could be updated to today's actuarial life expectancies. But that hasn't happened yet to my knowledge.
Actually, a week ago the IRS published new life expectancy tables to be effective in 2022. https://www.currentfederaltaxdevelop...inning-in-2022
cathy63 is online now   Reply With Quote
Old 11-19-2020, 01:03 PM   #26
Thinks s/he gets paid by the post
 
Join Date: Mar 2013
Location: Coronado
Posts: 2,369
Quote:
Originally Posted by Midpack View Post
It appears were both right in a sense. Ive seen the tables will be updated, but not necessarily as a result of the Secure Act as I assumed.
It was the result of an executive order signed in 2018. I guess it takes 4 years to figure out how much longer people are living nowadays!
cathy63 is online now   Reply With Quote
Old 11-19-2020, 03:43 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 5,358
Doesn't make much difference for me right now. I was withdrawing from 401(k) before RMDs kicked in and currently take out more than RMD requires. I either Roth'd it and/or spent it. Now, I use it as part of my living expenses.

I can see a time in the future, if I live so long, that my taxes might go higher when I am forced to take more than I really need. BUT, the gummint giveth and the gummint taketh away... YMMV.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 11-19-2020, 04:35 PM   #28
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 1,775
Thanks. The change in RMDs is all new news to me. It looks like a 7% lower RMD at age 75. I'll take it.
CRLLS is online now   Reply With Quote
Old 11-19-2020, 04:57 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 16,620
Example:
Quote:
The life expectancy tables and applicable distribution period tables in the regulations generally reflect longer life expectancies than the formerly applicable tables. For example, a 72-year-old IRA owner who applied the former Uniform Lifetime Table to calculate RMDs used a life expectancy of 25.6 years. Applying the Uniform Lifetime Table set forth in the new regulations, a 72-year-old IRA owner will use a life expectancy of 27.4 years to calculate RMDs.

The effect of these changes is to reduce RMDs generally, which will allow participants to retain larger amounts in their retirement plans to account for the possibility they may live longer, the IRS says.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 30% bond funds / 20% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 11-19-2020, 07:09 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 28,925
To me the whole Secure Act 2.0 is a bit of yawner.... I could do more Roth conversions vs rIRA RMD withdrawals for a few more years so its is good that that money will end up in a Roth rather than taxable accounts.

DS has taken advantage of the Retirement Savers Tax Credit but he is close to having too much income to benefit from it so it'll depend on what the changes are. Indexing it makes sense.

I wonder what the cost is in lost tax revenues.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is online now   Reply With Quote
Reply

Tags
2.0, secure


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
SECURE Act - your thoughts mickeyd FIRE Related Public Policy 230 07-12-2020 10:10 AM

» Quick Links

 
All times are GMT -6. The time now is 07:11 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.