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Author: sheilaoliver Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75890  
Subject: mandatory withdrawal-ever eliminated? Date: 6/3/2000 7:57 AM
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I posted this question at another board but have rec'd no answer. SO--in your opinions, will the 70.5 yrs old mandatory withdrawals commencement ever be eliminated?
Are any of our legislators interested?

Thank you you for your input.

Sheila
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Author: nampa45 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22342 of 75890
Subject: Re: mandatory withdrawal-ever eliminated? Date: 6/3/2000 8:15 AM
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Probably not. The government will eventually want to get their hands on the tax revenue that has been sitting in you retirement account.

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Author: clufool Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22344 of 75890
Subject: Re: mandatory withdrawal-ever eliminated? Date: 6/3/2000 8:33 AM
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Probably not. The government will eventually want to get their hands on the tax revenue that has been sitting in you retirement account.

Wouldn't they eventually get their hands on the tax revenue when you die? Even more so. A large IRA or 401K is also included in one's estate for Federal Estate Taxes, isn't it?

cf

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Author: drippinfool Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22348 of 75890
Subject: Re: mandatory withdrawal-ever eliminated? Date: 6/3/2000 3:00 PM
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sheilaoliver wrote "in your opinions, will the 70.5 yrs old mandatory withdrawals commencement ever be eliminated?
Are any of our legislators interested?

Thank you you for your input.

Sheila"

In a sense, they have eliminated it already with the Roth IRA, haven't they?

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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22350 of 75890
Subject: Re: mandatory withdrawal-ever eliminated? Date: 6/3/2000 3:26 PM
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I posted this question at another board but have rec'd no answer. SO--in your opinions, will the 70.5 yrs old mandatory
withdrawals commencement ever be eliminated?
Are any of our legislators interested?

Thank you you for your input.


Not in our lifetime.

In general your estate will be better off if the money left behind in not in an IRA or 401k etc.

I would plan on spending down the retirement plans before you death and let the non tax deferred assets accumulate.



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Author: dogbo One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22351 of 75890
Subject: Re: mandatory withdrawal-ever eliminated? Date: 6/3/2000 3:45 PM
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SO--in your opinions, will the 70.5 yrs old mandatory withdrawals commencement ever be eliminated?
Are any of our legislators interested?

I'd have to disagree with some of the replies to this message. Obviously legislators are somewhat interested in changing this. I forget if it was SBJPA '96 or TRA '97 that congress saw fit to eliminate the 70 1/2 min required distributions from qualified retirement plans (401k's, PS, etc.) for individuals who continue to participate in their qualified retirement plan (unless they are a 5% owner). My point being, if they tinkered with it then what's to say they won't again...if press by their constiuency (sp?) to do so.

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Author: clufool Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22353 of 75890
Subject: Re: mandatory withdrawal-ever eliminated? Date: 6/3/2000 4:39 PM
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constiuency (sp?) (constituency) According to spelling in Microsoft Word. I am not good a spelling. Thankful for spelling and thesaurus in MS Word.

cf

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Author: SuzanneSLO One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 22366 of 75890
Subject: Re: mandatory withdrawal-ever eliminated? Date: 6/4/2000 1:34 PM
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I agree that we will see tinkering with the age rather than elimination of required minimum distributions as long as IRAs are still intended primarily as vehicles to pay for retirement. As people live longer, I see the age for RMD getting higher and higher.

Also, I would love for the legislators to give us a better rule on when RMDs must begin. Why April 1 of the year after your turn 70 1/2? Most people stopped counting their half year birthdays when they started kindergarten. In addition, most people think of Apr. 15 as a tax deadline, not Apr. 1.

As another posted pointed out, whether or not minimum distributions are required, it may be to your benefit to take them from your IRA instead of an equivalent amount from a taxable account.

-- Suzanne

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