As you know from my recent post on the SECURE Act, Congress is pulling a fast one on the savers of America.
If passed, the “Stretch IRA” will be eliminated for children, grandchildren and other non-spousal heirs.
It will require IRAs to be fully distributed (fully taxed) within ten years—no longer over a lifetime.
A granddaughter in her mid-20s, for example, will not be able to “stretch” the distributions over her life expectancy and more fully harness the power of compound growth.
Anyone and everyone with a tax deferred savings account should be livid. This toxic waste applies to you if you have a profit-sharing plan, a 401(k), or any other defined contribution plan that will be rolled over to an IRA at some point in your life.
This is Big government playing Lucy to your estate football when you deserve much better than their Charlie Brown treatment.
Americans’ elected officials in the House passed this tax grab with barely a peep from voters because apparently they had no clue it was happening.
The House passed this rubbish 417-3, and the Senate is expected to pass it via unanimous consent.
I had a great conversation with a client this morning who is calling the offices of his senators.
The beneficiaries of the Secure Act are not your heirs. It’s the politicians and their campaign lackeys in the insurance lobby who will have open season on savers when they strong arm them into annuities (READ my piece why).
If government feels they can change the rules mid-game, 417-3, obviously the system is broken, or they haven’t a clue how you and I save money (which is absolutely true).
Don’t worry, I already have plenty of ideas to beat them at their own game.
They certainly don’t have a monopoly on brains.
E.J. Smith - Your Survival Guy
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