No. of Recommendations: 12
IP writes,

This Secure Act is essentially just a money grab. Don't expect to ever trust a gov't program again.


I assume you're referring to the changes to non-spousal inherited IRAs which requires liquidating (and paying taxes on) the balance of the account within 10 years. I'm good with that.

Congress designed IRAs as "Individual Retirement Accounts", not as tax-preferred wealth transfer schemes. Congress expected you to spend most of the IRA money while you're still alive.

Back in the early 1990's when I was getting serious about retiring early, one thing that caused me to pull the trigger was the 15% penalty on IRA withdrawals in excess of $160,000/yr. At my then current rate of savings, a 4% withdrawal would have breached that limit by about age 42 or so. No sense working longer just to pay more taxes on money you're not spending anyway.

Phil (Senator from Enron) Gramm got the "$160,000/yr IRA tax" repealed in 1997.

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