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OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
6949 posts

Congress is considering big changes to the way you retire
quote:

The Secure Act

It includes measures to allow small employers to band together to offer 401(k) plans, give part-time workers access to retirement plans, take away the 70½ age limit for individual retirement account contributions and raise the age for required minimum distributions to 72, from 70½.

It also would expand the inclusion of annuities in 401(k) plans and put a 10-year time limit on how long non-spouse beneficiaries can stretch out an inherited IRA.


quote:

Social Security 2100 Act

The proposal would give those who are or will be receiving benefits a raise that is the equivalent of 2% of the average benefit. It would also set the new minimum benefit at 25% above the poverty line.

The plan also would increase the amount of non-Social Security income one can earn before benefits begin to be taxed. The new limits would go to $50,000 for individuals and $100,000 for couples, up from today's $25,000 and $32,000 thresholds.

In order to pay for those changes, the bill calls for raising payroll taxes on wages over $400,000. Wages up to $132,900 are currently taxed.

It also calls for increased payroll contributions from workers and employers. That rate would increase to 7.4% from 6.2% and would be gradually phased in from 2020 to 2043.


quote:

Rehabilitation for Multiemployer Pensions Act

The new bill would let pensions borrow money to remain solvent so that they can continue to pay retirees. The legislation would create a Pension Rehabilitation Administration within the Treasury Department and a trust fund from which the loans would be distributed.


quote:

More proposals on Medicare and Social Security

The Health Savings for Seniors Act, a bipartisan bill, introduced by Reps. Ami Bera, D-Calif., and Jason Smith, R-Mo., in July. This bill would allow individuals who are on Medicare to continue to contribute to health savings accounts. Currently, they are prohibited from doing so.

Another proposal by Rep. Kevin Brady, R-Texas, the Equal Treatment of Public Servants Act, would enable public workers to get larger Social Security benefits. A current rule, the Windfall Elimination Provision, reduces their benefits based on how much pension income they receive.


LINK

Democrats:
For your retirement accounts


HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
31292 posts

re: Congress is considering big changes to the way you retire
quote:

The plan also would increase the amount of non-Social Security income one can earn before benefits begin to be taxed. The new limits would go to $50,000 for individuals and $100,000 for couples, up from today's $25,000 and $32,000 thresholds. 


So a "retired" individual can withdraw and continue to work with a $50,000 a year salary?


Janky
LSU Fan
Team Primo
Member since Jun 2011
26489 posts

re: Congress is considering big changes to the way you retire
quote:

and put a 10-year time limit on how long non-spouse beneficiaries can stretch out an inherited IRA.


This is bull shite.


TheChosenOne
VCU Fan
Member since Dec 2005
15788 posts

re: Congress is considering big changes to the way you retire
quote:

Rehabilitation for Multiemployer Pensions Act

The new bill would let pensions borrow money to remain solvent so that they can continue to pay retirees. The legislation would create a Pension Rehabilitation Administration within the Treasury Department and a trust fund from which the loans would be distributed.

Bailing out poorly managed and corrupt unions?


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292
iAmBatman
USA Fan
The Batcave
Member since Mar 2011
9006 posts

re: Congress is considering big changes to the way you retire
Where in those bills does it say they are going to take money from existing 401k accounts or IRAs?


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242
LSURussian
LSU Fan
Member since Feb 2005
115773 posts

re: Congress is considering big changes to the way you retire
quote:

and put a 10-year time limit on how long non-spouse beneficiaries can stretch out an inherited IRA.



This is bull shite.
Why is that bullshite?


OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
6949 posts

re: Congress is considering big changes to the way you retire
quote:

Why is that bullshite?


Are you dumb? It was a tax benefit used in estate planning to pass along inherited wealth. Instead of being able to “stretch” over the lifespan of the recipient it’s now 10 years.


Janky
LSU Fan
Team Primo
Member since Jun 2011
26489 posts

re: Congress is considering big changes to the way you retire
I believe in the stretch.


LSURussian
LSU Fan
Member since Feb 2005
115773 posts

re: Congress is considering big changes to the way you retire
quote:

put a 10-year time limit on how long non-spouse beneficiaries can stretch out an inherited IRA.


quote:

Are you dumb?
No, but you are. That's been evident for years.
quote:

Instead of being able to “stretch” over the lifespan of the recipient it’s now 10 years.
Nope. That's only for a "spousal beneficiary."

The proposed change that janky called "bullshite" is for a "non-spousal beneficiary."

Under current regs, in most cases a "non-spouse beneficiary" who inherits an IRA after the original IRA owner has begun taking distributions only has FIVE years to "stretch out" the IRA's amount. Under the proposal, that will change to TEN years. ETA: At least that's how I read the article you linked in your OP. All of the proposed provisions are better for IRA owners and beneficiaries.

So the change makes it better for someone who wants to make the IRA last longer.

Dumbass.

This post was edited on 8/10 at 9:03 pm


LSURussian
LSU Fan
Member since Feb 2005
115773 posts

re: Congress is considering big changes to the way you retire
quote:

I believe in the stretch.
Then you're in luck. You'll have twice as long to stretch out an inherited non-spousal IRA.


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LSURussian
LSU Fan
Member since Feb 2005
115773 posts

re: Congress is considering big changes to the way you retire
quote:

The plan also would increase the amount of non-Social Security income one can earn before benefits begin to be taxed. The new limits would go to $50,000 for individuals and $100,000 for couples, up from today's $25,000 and $32,000 thresholds.



So a "retired" individual can withdraw and continue to work with a $50,000 a year salary?
Or more importantly, $100,000 for couples filing jointly. That's a nice tax cut for couples who've planned for their retirement properly and don't want to have to pay so much tax on their social security income.


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200
Janky
LSU Fan
Team Primo
Member since Jun 2011
26489 posts

re: Congress is considering big changes to the way you retire
Wtf are you talking about?


LSURussian
LSU Fan
Member since Feb 2005
115773 posts

re: Congress is considering big changes to the way you retire
What is confusing you?


tenderfoot tigah
LSU Fan
Red Stick
Member since Sep 2004
4575 posts

re: Congress is considering big changes to the way you retire
It sounds like my taxes are going up. The only thing that would benefit me is not losing social security money due to having a decent 401k balance.

It seems like they trying their best to help out the poor planners. The current way is not that bad.


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33
TorchtheFlyingTiger
North Carolina St. Fan
FL
Member since Jan 2008
586 posts

re: Congress is considering big changes to the way you retire
Under current rules inherited IRA can be withdrawn using 5 year method or over beneficiary's lifetime as using life expectancy method. Secure Act proposal would eliminate the ability to distribute over beneficiary's entire lifetime.

Now who's the dumbass?

Here's a Forbes article better explaining the impact on non spouse beneficiary inherited IRAs. Secure Act Stretch IRA Impact


cave canem
Mississippi St. Fan
pullarius dominus
Member since Oct 2012
9574 posts

re: Congress is considering big changes to the way you retire
The best change would be raising the requirement for quarters to 80 from 40.

This would solve a great deal of the funding problems.


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20
CivilTiger83
Clemson Fan
Member since Dec 2017
1552 posts

re: Congress is considering big changes to the way you retire
It seems like this makes SS even less solvent by expanding the benefit. Skeptical that the $400k tax will generate enough revenue.

I like the group 401k idea.

What would be even better would be to create a structure where all US individuals can invest tax free. Basically just expand Roth and individual IRAs limits and provide a way for companies to match contributions.

Companies that sell these 401K plans make a lot of money ripping people off on 401K plans with high fees. I don’t doubt that there is a lobbying interest there.


Janky
LSU Fan
Team Primo
Member since Jun 2011
26489 posts

re: Congress is considering big changes to the way you retire
We have been using lifetime stretches on non-spousal IRA’s for as long as I can remember. Hell, you can even do lifetime stretches on NQ annuities.


OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
6949 posts

re: Congress is considering big changes to the way you retire
quote:

We have been using lifetime stretches on non-spousal IRA’s for as long as I can remember. Hell, you can even do lifetime stretches on NQ annuities.


Shhhhh. He likes to feel as if he’s important.


fillmoregandt
Ole Miss Fan
Over the Mountain
Member since Nov 2009
12693 posts

re: Congress is considering big changes to the way you retire
quote:

It seems like this makes SS even less solvent by expanding the benefit. Skeptical that the $400k tax will generate enough revenue.



That was my take away too


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