I love that the Government is always going to make things simpler for taxpayers. The phase-in of the RMD's dates and catch-up provisions should not make life any more complicated for taxpayers but will insure full employment for EA's, CPA's, and misc. licensed preparer's in general. Thanks for the update, each class is a winner.
(Re: the commercial before this video! What a waste of water!) The 50% penalty for not taking your RMD is an outrageously high amount! It should not be on the total RMD amount, but rather only on the tax owed on that RMD! The rest is your money! If a private company attempted to charge such a usurious amount, they would be probably be fined by the Gov't, so why can they do it?
Young man doing a great service on RU-vid to educate the older set with great content, thanks. Where does the bill stand in the Senate? Who were the five who opposed it in the House? What is the projected effect on the federal deficit?
Thanks Eric for the info...I'll definitely keep an eye on this proposal. Pleasantly shocked that they will push out the requirement for RMD's from 72 to 75 (which is a good thing!)...I'm just used to the Government sticking it to us and this extension in RMD age is nothing but a pleasant surprise. Keep up the great work! 🙌🏻
I hear you Tony. Will be interesting to see how this bill moves the rest of the way through Congress. Fingers crossed for some retirement relief here...
Tony - you do realize that you will have to take LARGER amounts every year if they pass this. (Still a good thing - but they want us to pay up before we "move on".)
I suspect they are laying the groundwork to increase the full retirement age, maybe as high as 70. I wonder if they are brave enough to raise the early retirement age as well. After all, Congress critters can sort of function into their 80s, why not everyone else?
@@mr.j2776 For sure--but at least we can implement Roth conversion strategies for a few more years ahead of required distributions to reduce the impact of the increase in RMD %.
No information on how these changes will effect the Uniform Lifetime Table? Will the Table stay the same or will each age use a different set of numbers.
The government is great at assessing high interest and penalties! How about paying citizens the same outrages interest and penalties........for delayed tax refunds!
Can't seem to find any info about 401B that was converted into precious metal IRA. I was born June 1950 and did the conversion after retiring at age 58. If I need to, how and when do I do my RMD?
Interesting, and good to know for planning. Will be watching to see if it passes or goes further. Lots of bills come out the house to die in the senate regardless of politics each year.
A lot of politicians of all stripes see working on the SS benefit shortfall as a 3rd rail topic that they don't want to take a stance on because it is seen as politically damaging. My bet is that they kick the can down the road, as they have always done, and either let benefits be cut or run a deficit in that program. They run the whole government with deficit spending, why not this too? If they do anything, and that is a big IF, it will likely be something like moving FRA out to 70 and maybe raising either the OASDI % up from 6.2% or the income limit on how much can be taxed against wages for SS (I want to say the income limit is around $147,000 today). I supposed another option would be to means test SS. If you have XX amount of dollars in assets then the government could reduce your SS payout.
Imagine this crony retirement system in Russia. The life expectancy for a male used to be 50 before they stopped giving the stats. Current stats suggest it is 65-68 but I doubt that.
They'll probably remove the RMD's for retirees so they can then force inheritors to redeem it within the 10 year window. My best bet is to get it converted before collecting SS.
Is a WD from a Traditional IRA during the year an RMD is to be taken considered an RMD or does it have to be spelled out as an RMD? Or specifically claimed as an RMD on your taxes?
Eric could you make a video on allowable gift amount to loved ones as a tax reduction strategy. No one talks about this important tax strategy!. Thank you.
1. You are allowed $16,000 annual gift (2022) to as many people as you want without anyone paying taxes. Anything above that will force you to use part of your life time exemption and you have to fill out an IRS form at the end of the year to tract it. 2. Also you can pay medical expenses for anyone as long as it is paid directly. What I do is have a credit card just for medical expenses and give a copy with their name on it for them to use for medical expenses above their insurance coverage. 3.They also use it to pay Medicare B if it is not directly taken out of their SS check. This an added bonus for not taking SS early. If they are already getting SS then there is no way for you to reimburse them or pay for it directly. Medicare and SSA will not take your payment over their direct withdrawals. 4. You can also pay tuition up to $10,000 annually for anyone if it is paid directly to the school.
terminology is misleading. the irs doesn't require the penalty. it is our elected congress. irs just manages the process. it's easy to scapegoat the irs. put the focus on congress.
why it's charged taxes at the capital gains rate, seeing how that what most it is? I got screwed when it hit me, now pretty much most or more of my RMD goes to the IRS. just another way of the MAN screwing us
